HomeMy WebLinkAbout11304-26 Amending Chapter 4 of the South Bend Municipal Code to Establish Article 5 Containing Regulations to Implement a Permit Program for Short-Term Rentals ORDINANCE No .
11304-26
Passed by the Common Council of the City of South Bend, Indiana
September 14, 26
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Attest: City Clerk
Bianca L. Tirado
Attest: • President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
September 15, 20 26
City Clerk
SACII.
Bianca L. Tim
Approved and signed by me S k fJ%4 l V Z` 20 26
/7 ill Mayor
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SUBSTITUTE BILL NO. 52-26
ORDINANCE NO. 11304-26
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, AMENDING CHAPTER 4 OF THE SOUTH BEND MUNICIPAL CODE TO
ESTABLISH ARTICLE 5 CONTAINING REGULATIONS TO IMPLEMENT A
PERMIT PROGRAM FOR SHORT-TERM RENTALS
STATEMENT OF PURPOSE AND INTENT
The City of South Bend ("City") has adopted a comprehensive Zoning Ordinance to
regulate the location and use of land and buildings, as authorized by Indiana Code 36-7-4 et seq.;
and
The rental of residential property for short-term rental to overnight guests is not
addressed in the Zoning Ordinance or elsewhere in the Municipal Code; and
The City recognizes that allowing short-term rentals in some residential areas provides
alternatives to hotel accommodations for visitors; and
Short-term rentals help the City accommodate the many visitors who attend special
events; and
Many property owners who provide short-term rental accommodations are able to invest
in home repairs, upgrades, and preservation projects that would otherwise be unaffordable; and
Taxes collected from short-term rentals contribute to a reliable source of revenue to the
City; and
Certain areas of the City are less compatible for short-term rental uses and the City
wishes to designate only specific areas where the uses are to be permitted, as allowed by state
law; and
Where short-term rentals are permitted, they should be subject to reasonable regulations
to address health and safety needs of guests and neighbors, as well as to prevent and abate
nuisance conditions; and
Providing for a permitting system for short-term rentals, as authorized by Indiana Code
36-1-24 et seq. allows for reasonable regulation of short-term rentals,together with the ability to
increase enforcement of City ordinances against properties which operate in violation of the
Municipal Code; and
These regulations will encourage and promote the continued residential character of
neighborhoods, long-term housing supply, and public safety within neighborhoods by reducing
nuisances commonly associated with short-term rentals; and
Adoption of these regulations is consistent with the City's comprehensive plan; and
The City finds that these regulations are needed to adequately protect the public health,
safety, and welfare of its residents and guests; and
Indiana Code 36-1-24 et seq. allows a political subdivision to establish and enforce
permitting programs for short-term rentals, subject to certain conditions and limitations.
NOW THEREFORE,BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA as follows:
SECTION I. A new Article 5, Sections 4-65 through 4-71, is hereby added to Chapter 4,
approved and adopted to read in its entirety as follows:
ARTICLE 5 SHORT-TERM RENTAL ACCOMMODATIONS
Section 4-65 Definitions.
The following words, terms, and phrases, when used in this article, shall have the
meanings ascribed to them in this section:
(a) Non-owner-occupied means property which does not meet the definition set forth in
Section 4-65(c);
(b) Owner shall have the meaning set forth in I.C. 36-1-24-2, as amended;
(c) Owner-occupied short-term rental property means property that is the owner's
primary residence and is offered to the public as a short term rental, as defined in I.C.
36-1-24-3, as amended;
(d) Permit shall have the meaning set forth in I.C. 36-1-24-4, as amended;
(e) Permitted property shall have the meaning set forth in I.C. 36-1-24-5, as amended;
(f) Short-term rental means the rental of(1) a single family home; (2) a dwelling unit in a
single family home; (3) a dwelling unit in a two-family or multifamily dwelling; or
(4) a dwelling unit in a condominium, cooperative, or time share; for terms of less
than thirty(30) days at a time through a short term rental platform. The term includes
a detached accessory structure, including a guest house, or other living quarters that
are intended for human habitation, if the entire property is designated for a single
family residential use. The term does not include property that is used for any
nonresidential use. For purposes of I.C. 36-1-24-1, the term does not include a
private, owner occupied business with two (2) to ten(10) guest rooms where
overnight accommodations and a morning meal are provided to the public for
compensation and that is operated primarily as a business, as defined in I.C. 36-1-24-
6, as amended;
(g) Short-term rental platform shall have the meaning set forth in I.C. 36-1-24-7, as
amended.
Section 4-66. Legislative Intent.
The purpose of the regulations contained in this article is to:
(a) Protect public health and safety, through the promotion of fire and building safety,
sanitation, transportation, traffic control, and pollution control; and
(b) Promote the residential character of neighborhoods, including the protection of welfare,
and the regulation of noise, property maintenance, and nuisance issues.
Section 4-67 Short Term Rental Requirements
(a) An owner using a property as a short-term rental must have established the use as a
permitted use of the property pursuant to either Indiana Code 36-1-24-8 by using the
property as an owner-occupied short-term rental or Indiana Code 36-1-24-9 by obtaining
a special exception as required by Chapter 21 of the South Bend Municipal Code.
(b) No owner shall maintain, or allow occupancy, of a short-term rental unit within the City
that fails to comply with applicable Fire Codes, Building Codes, and International
Property Maintenance Codes, including but not limited to occupancy requirements set
forth in the International Property Maintenance Code, adopted by reference in Section 6-
37 of the Municipal Code and described more particularly, in part, as follows:
(1) Every bedroom occupied by one person shall contain at least 70 square feet of
floor area, and every bedroom occupied by more than one person shall contain at
least 50 square feet of floor area for each occupant thereof.
(2) Kitchens and nonhabitable spaces shall not be used for sleeping purposes.
(3) Dwelling units shall not be occupied by more occupants than permitted by the
following minimum area requirements:
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MINIMUM AREA IN SQUARE FEET
Space 1-2 Occupants 3-5 Occupants 6 or More Occupants
Living room.,b No requirements 120 150
Dining rooma,b No requirements 80 100
Kitchenb 50 50 60
Bedrooms Shall comply with Section 404.4
(c) All requirements set forth in this Section shall be enforced in the same manner as similar
properties that are not operated as short-term rentals.
Section 4-68 Application for Short-Term Rental Permit
(a) Permit required. Any owner operating a short-term rental must hold a valid short-term
rental permit. The permit requirements in this Section shall also apply to any rental of a
single-family home or dwelling unit for terms of less than thirty (30) days not conducted
through a short term rental platform.
(b) Property Covered by Permit. One permit shall cover each single-family home, two-family
or multifamily dwelling, condominium, cooperative, or time share together with all
dwelling units and detached accessory structures located on the permitted property.
(c) Application. The owner must submit an application for each property for which a permit
is sought containing information required by Indiana Code 36-1-24-11, as amended. This
application shall be made in writing to the Office of the City Controller as provided in
Section 4-4(a) of this Chapter.
(d) The fee for an initial permit shall be One Hundred Fifty Dollars ($150.00).
(e) Applicants for a short term rental permit must provide the City with an emergency
contact for the rental with 24/7 availability, pursuant to Indiana Code 36-1-24-10(5).
(f) If any information included in the application changes, the owner shall provide updated
information to the City in writing within thirty (30) business days.
(g) Except as otherwise provided in this Article, if an owner submits a permit application
meeting the requirements of this Section, the permit shall be issued within thirty (30)
days of receiving the application.
Section 4-69 Expiration; Renewal; Revocation
(a) Permits under this Article expire one (1)year after issuance. No fee shall be charged for
renewal of a permit, including an expired permit.
(b) The permits governed by this Article are regulated privileges, not rights, and may be
revoked in accordance with the provisions of this Section. If three (3) or more citations
for ordinance violations are issued to an owner for a permitted property within a calendar
year, the City may revoke a permit issued pursuant to this Article. The revocation may be
effective for a period not to exceed one(1) year after the date of revocation. The owner
shall receive notice and an opportunity for a hearing on the revocation of a permit, which
shall be governed by the procedures set forth in Section 4-16 of the Municipal Code.
(c) An owner may apply for a permit for a short-term rental for which a previous permit of
the owner was revoked. If a prior permit has been revoked, the City may charge a permit
fee of One Hundred Fifty Dollars ($150.00) to issue a subsequent permit to the owner.
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The new permit may not be issued until any outstanding fines are paid for ordinance
violation citations issued to the owner with regard to use of the short-term rental.
Section 4-70 Transfers and assignments.
A short-term rental permit does not authorize any owner, other than the owner named on the
permit, to operate a short-term rental. A permit holder may not transfer or assign the permit to
another person or address. A new owner must submit an application for a new permit.
Section 4-71 Penalties.
(a) An owner that rents a short-term rental without obtaining a valid permit from the City
pursuant to this Article commits a Class C infraction, subject to a penalty of up to Five
Hundred Dollars ($500.00)per violation.
(b) Each short-term rental transaction that the owner completes without a short-term rental
permit constitutes a separate violation of this Article.
SECTION II. This Ordinance shall be effective January 1, 2027, following its passage by
the Common Council and approval by the Mayor.
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Canneth J. Lee, Council President
South Bend Common Council
Attest:
Bianca L. Tirad , ity Clerk
Office of the Ci y Clerk
Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the
City of South Bend, Indiana on the 15th day of September , 2026, at 12 o'clock p.m.
Bianca L. Tirado, Cit erk
Office of the City Clerk
r
tApproved and signed by me on the u w�
in. - day of SIiW, 2026, at 7 o'clock
Jan s Mueller, Mayor
Cit of South Bend, Indiana
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