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Home My WebLink AboutOrdinance DRAFT 05-16-24 5/16/2024 Ordinance Z- 1 Sponsor: Councilors 1 2 ORDINANCE Z-____-24 3 AN ORDINANCE OF THE COMMON COUNCIL OF THE 4 CITY OF CARMEL, INDIANA 5 ___________________________________________________ 6 An Ordinance establishing Non-Dwelling Short-Term Rental Use-Specific Standards and Definitions in the 7 Unified Development Ordinance. 8 9 Synopsis: 10 This Ordinance establishes Non-Dwelling Short-Term Rental Use- Specific Standards to address pool, 11 backyard, accessory buildings, and other structures or facilities rentals. 12 13 WHEREAS, the City wishes to ensure the public health, safety and welfare of all its residents, and 14 uphold the property rights of the City residents who own real property located in Residential Districts; and 15 16 WHEREAS, short-term rental offerings have expanded to include pools, backyards, accessory 17 buildings, and other facilities (collectively Non-Dwelling Short-Term Rentals); and 18 19 WHEREAS, Non-Dwelling Short-Term Rentals are offered exclusively and independently from 20 dwellings; and 21 22 WHEREAS, Non-Dwelling Short-Term Rentals present concerns and impact neighboring properties 23 in a similar way as Short-Term Residential Units, and such impact can be further exacerbated because Non-24 Dwelling Short- Term Rentals are frequently rented on hourly basis increasing the number of individuals who 25 use the property throughout the day; and 26 27 WHEREAS, to mitigate potential negative effects on the quality of life, quiet enjoyment of properties 28 and residential neighborhoods integrity, the City wishes to establish Use-Specific Standards for Non-Dwelling 29 Short-Term Rentals; and 30 WHEREAS, it is in the public interest that Non-Dwelling Short-Term Rentals be reasonably regulated 31 and that due process be provided to all affected property owners to protect the quality of life, safety of residents, 32 and quiet enjoyment of properties as well as to conserve property values in Residential Districts; and 33 WHEREAS, pursuant to Indiana Code 36-7-4-602 the Common Council is authorized to amend the text 34 of the unified development ordinance; and 35 WHEREAS, pursuant to Indiana Code 36-7-4-610 and City of Carmel Ordinance D-2391-17, the 36 Carmel Unified Development Ordinance is incorporated by reference into the Carmel City Code; 37 NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Carmel, Indiana, 38 that, pursuant to IC 36-7-4-600 et seq. and after Docket No. PZ-2024-00041 having received a favorable 39 recommendation from the Carmel Advisory Plan Commission on Tuesday,___________, 2024, it hereby adopts 40 this Ordinance to amend the Carmel Unified Development Ordinance (Ordinance Z-________, as amended), to 41 read as follows: 42 43 44 5/16/2024 Ordinance Z- 2 Section I: Amend Article 1 by adding BZA Hearing Officer Filing Fees for Non-Dwelling Short-Term Rental 45 review. 46 1.29 Filing Fees 47 BZA Hearing Officer 48 • Residential $207.25 plus $120.50 for each additional 49 • Commercial petition $849.50 plus $420.50 for each additional 50 • Special Exception, Group Home $104 plus $104 per bedroom 51 • Special Exception, Short Term Rentals $115.25 52 • Renewal of Special Exception $58.00 53 54 Section II: Amend Article 2 by adding Non-Dwelling Short-Term Rental as a Residential Special Exception 55 for the following Districts: 56 57 2.03 S1 District Intent, Permitted Uses, Special Uses and Special Exceptions 58 Residential Special Exception – Non-Dwelling Short-Term Rental 59 60 2.05 S2 District Intent, Permitted Uses, Special Uses and Special Exceptions 61 Residential Special Exception – Non-Dwelling Short-Term Rental 62 63 2.07 R1 District Intent, Permitted Uses, Special Uses and Special Exceptions 64 Residential Special Exception – Non-Dwelling Short-Term Rental 65 66 2.09 R2 District Intent, Permitted Uses, Special Uses and Special Exceptions 67 Residential Special Exception – Non-Dwelling Short-Term Rental 68 69 2.11 R3 District Intent, Permitted Uses, Special Uses and Special Exceptions 70 Residential Special Exception – Non-Dwelling Short-Term Rental 71 72 2.13 R4 District Intent, Permitted Uses, Special Uses and Special Exceptions 73 Residential Special Exception – Non-Dwelling Short-Term Rental 74 75 2.15 R5 District Intent, Permitted Uses, Special Uses and Special Exceptions 76 Residential Special Exception – Non-Dwelling Short-Term Rental 77 78 2.17 UR District Intent, Permitted Uses, Special Uses and Special Exceptions 79 Residential Special Exception – Non-Dwelling Short-Term Rental 80 81 82 Section III: Adopt Article 5: Development Standards, Section 5.74: US-28 Non-Dwelling Short-Term Rental 83 Use-Specific Standards as follows: 84 This Use-Specific Standards (US) section applied to the following zoning districts: 85 S1 S2 R1 R2 R3 R4 R5 UR PUD (only if PUD District Ordinance is silent) 86 PUD District Ordinance shall control unless it is silent on applicable rental regulations. All 87 PUDs parcels shall be reviewed as their underlying zoning, such underlying zoning shall be 88 determined by DOCS Staff 89 90 A. Purpose: It is the purpose of this Section to benefit the general public by minimizing adverse impacts 91 on established residential neighborhoods in the City and the owners and residents of properties in 92 these neighborhoods resulting from the conversion of residential properties or portions thereof to 93 tourist, entertainment, transient and/or temporary uses. 94 5/16/2024 Ordinance Z- 3 95 B. Special Exception Eligibility: A Permanent Resident of a Dwelling located in a Residential District 96 may use a portion of the real estate where such Dwelling is located as a Non-Dwelling Short-Term 97 Rental if: 98 1. The Permanent Resident applies for and is granted a Special Exception, pursuant to Section 9:08: 99 Special Exception (Group Homes and Short-Term Residential Rentals) hereof. 100 2. The Permanent Resident maintains a valid Registered Retail Merchant Certificate; 101 3. The Permanent Resident posts a clearly printed sign in the clearly-visible location within the 102 rented space that provides information regarding the location of lifesaving equipment, any fire 103 extinguishers, gas shut off valves if gas-operated equipment is present, evacuation exits, and 104 emergency contact information. 105 106 C. Required Information for Application: Both the initial application and any renewal application for a 107 Special Exception permit shall contain the following: 108 1. Information sufficient to show that the applicant is the Permanent Resident of the real estate 109 where Non-Dwelling Short-Term Rental is located, and that the applicant has a Registered Retail 110 Merchant Certificate. Permanent residency shall be established by showing that the Unit is listed 111 as the applicant’s residence on at least two (2) of the following: motor vehicle registration; 112 driver’s license; voter registration; tax documents showing the unit as the applicant’s primary 113 residence for a standard homestead credit; or utility bill. A renewal application shall contain 114 sufficient information to show that the applicant is a Permanent Resident and has occupied the 115 real estate for at least two hundred seventy-five (275) days of the preceding calendar year. 116 2. Primary and secondary emergency contact information, including mailing address, phone 117 number or email address. Upon approval of a Special Exception, emergency contact information 118 shall be shared with the Carmel Police Department. 119 3. Any other information as may be required by the Director to evaluate the application. 120 121 D. Limitations: 122 1. The term of a Special Exception permit granted to a Permanent Resident shall be one (1) year. 123 The grant of a Special Exception permit provides an exception only to the other requirements of 124 this Ordinance. It does not confer a right to lease, sublease, or otherwise use a residential property 125 or portions thereof as a Non-Dwelling Short-Term Rental where such use is not otherwise 126 allowed by law, a homeowners association agreement or requirements, any applicable covenant, 127 condition, and restriction, a rental agreement, or any other restriction, requirement, or 128 enforceable agreement. Nothing in this Section shall relieve any person or facilitator of the 129 obligations imposed by any and all applicable provisions of state law and the Carmel City Code, 130 including but not limited to those obligations imposed by Indiana tax laws and rules. Further, 131 nothing in this Section shall be construed to limit any remedies available under any and all 132 applicable provisions of state law and the Carmel City Code. 133 2. If, after obtaining a permit, the real estate is subject to three two (23) notices of violations or 134 citations for violation of any provision of this Section, the Carmel City Code or state law that is 135 attributable to the use of the real estate as a Non-Dwelling Short-Term Rental, the permit shall 136 be revoked. Director of the Department of Community Services shall notify the Permanent 137 Resident of the permit revocation via first class mail and/or posting such notice at the real estate. 138 3. In addition to all of the Limitations of Subsection 5.74D(1) above, Non- Dwelling Short-Term 139 Rental shall have the following use-specific limitations: 140 a. Pools: 141 i. Permanent Resident must be at the property at all times during a Non-Dwelling Short-142 Term Rental operation. 143 ii. Permanent Resident must obtain premises liability insurance in the amount not less than 144 One Million Dollars ($1,000.000.00) per occurrence. The insurance must be renewed 145 5/16/2024 Ordinance Z- 4 annually. The certificate of such insurance shall be delivered to the Department of 146 Community Services prior to listing the real estate as a Non-Dwelling Short-Term Rental. 147 Proof of annual insurance renewal shall be delivered to the Department of Community 148 Services 149 iii. Operation hours shall be between 10 A.M and 8 P.M. 150 iv. A group size for a single Non-Dwelling Short-Term Rental shall not exceed ten (10) 151 individuals. At least one of these individuals shall be at least twenty-one (21) years of age. 152 v. Number of Non-Dwelling Short-Term Rentals shall not exceed X 1 day per X 153 (day/week/month).calendar month. The rental shall not exceed five (5) hours. 154 vi. Permanent Resident must provide sufficient guest parking that must be contained within 155 the real estate. 156 vii. Permanent Resident must comply with any applicable state laws, rules and regulations 157 relating to pool operation. 158 viii. Permanent Resident shall ensure that renters do not trespass on the neighbors’ properties. 159 ix.. Setback requirements? 160 b. Backyards Yards and other facilities (includes decks, patios, accessory structures etc.): 161 i. Permanent Resident must be at the property at all times during a Non-Dwelling Short-162 Term Rental operation. 163 ii. Permanent Resident must obtain premises liability insurance in the amount not less than 164 One Million Dollars ($1,000.000.00) per occurrence. The insurance must be renewed 165 annually.. The certificate of such insurance shall be delivered to the Department of 166 Community Services prior to listing the real estate as a Non-Dwelling Short-Term Rental. 167 Proof of annual insurance renewal shall be delivered to the Department of Community 168 Services 169 iii. Operation hours shall be between 10 A.M and 8 P.M. 170 iv. A group size for a single Non-Dwelling Short-Term Rental shall not exceed ten (10) 171 individuals. At least one of these individuals shall be at least twenty-one (21) years of age. 172 v. Number of Non-Dwelling Short-Term Rentals shall not exceed 1 day per calendar month. 173 The rental shall not exceed five (5) hours.X per X (day/week/month). 174 vi. Permanent Resident must provide sufficient guest parking that must be contained 175 within the real estate. 176 177 Section IV: Amend Article 9, Section 9.08 by renaming said Section to “Special Exception” and adding Non-178 Dwelling Short-Term Rental to Section’s applicability as follows: 179 180 9.08 Special Exception (Group Home and Short Term Residential Rental) 181 Applicability: This Special Exception section only applied to Group Homes, Short Term 182 Residential Rental, and Non-Dwelling Short-Term Rental uses. 183 184 Section V: Amend Article 9, Section 9.08(B)(5) by adding reference to Section 5.74(D): Limitations as 185 follows: 186 187 B. Procedure: 188 5. Approval or Denial of the Special Exception Application: Upon approval of a Special Exception, 189 the Hearing Officer shall inform the applicant that the applicant may apply to the Director of 190 Community Services for Improvement Location Permits (if necessary) or may commence the 191 Special Exception if no permits are required. Failure of the Hearing Officer to inform the 192 applicant of the time limits set forth in Section 5.72(D): Limitations, or Section 5.73(D): 193 Limitations or Section 5.74(D): Limitations, as applicable, shall not relieve the applicant of 194 complying with said Section. 195 196 5/16/2024 Ordinance Z- 5 Section VI: Amend Article 9, Section 9.08 by adding subsection G as follows: 197 198 G. Special Exception Non-Dwelling Short Term Rental Decisions; Commitment: Pursuant to IC 199 36‑7‑4‑1015, a Hearing Officer may, as a condition to any approval of an application for a Special 200 Exception, require or allow the owner to make any or all of the following commitments concerning 201 the use of the property: 202 1. That the Special Exception will fully comply with Section 5.74: Non-Dwelling Short‑Term 203 Rental Use‑Specific Standards. 204 2. That the Special Exception will be limited to thirty (30), sixty (60), or ninety (90) days during a 205 calendar year, at the discretion of the Hearing Officer. 206 3. If the Hearing Officer determines that a homeowners association or similar entity has established 207 limitations or prohibitions that apply to the property, that the owner’s implementation of the 208 Special Exception will not result in the violation of any such limitations or prohibitions. 209 210 Section VII: Amend Article 11 by including the following definitions: 211 212 Short-Term Rental; Non- Dwelling: Any outdoor or indoor pool, backyardyard, patio, deck, 213 accessory building, and other non-dwelling structure or facility that is rented or leased to transient 214 guests by a Permanent Resident of the property where such non-dwelling rental is located. 215 216 Section VIII: The Common Council hereby delegates Department of Community Services to correct and codify 217 numbering, pagination, cross-references, table of contents, Appendices, and land use matrix of the Unified 218 Development Ordinance affected by this Ordinance. 219 220 Section IX: All prior Ordinances or parts thereof inconsistent with any provision of this Ordinance are hereby 221 repealed. 222 223 Section X: This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. 224 ADOPTED by the Common Council of the City of Carmel, Indiana this ________ day of 225 ______________________ 2024, by a vote of _________ ayes and ________ nays. 226 227 228 COMMON COUNCIL FOR THE CITY OF CARMEL 229 230 ___________________________________ 231 Anthony Green, President Adam Aasen, Vice-President 232 233 ___________________________________ ______________________________ 234 Jeff Worrell Teresa Ayers 235 236 ___________________________________ ______________________________ 237 Anita Joshi Shannon Minnaar 238 239 ___________________________________ ______________________________ 240 Ryan Locke Matt Snyder 241 242 ___________________________________ 243 Rich Taylor 244 245 246 ATTEST: 247 5/16/2024 Ordinance Z- 6 248 __________________________________ 249 Jacob Quinn, Clerk 250 251 Presented by me to the Mayor of the City of Carmel, Indiana this ____ day of 252 _________________________ 2024, at _______ __.M. 253 ____________________________________ 254 Jacob Quinn, Clerk 255 256 Approved by me, Mayor of the City of Carmel, Indiana, this _____ day of ________________________ 257 2024, at _______ __.M. 258 ____________________________________ 259 Sue Finkam, Mayor 260 261 ATTEST: 262 263 ________________________ 264 Jacob Quinn, Clerk 265 266 267 268 Prepared by: Sergey Grechukhin, Transactions Chief, One Civic Square, Carmel, IN 46032 269