HomeMy WebLinkAboutDepartment Report 05-21-248
CARMEL PLAN COMMISSION
DEPARTMENT REPORT
MAY 21, 2024
4. Docket No. PZ-2024-00041 OA: Non-Dwelling Short-Term Rental Standards UDO Amendment.
The applicant seeks to amend the Unified Development Ordinance to establish standards and definitions
for Non-Dwelling Short-Term Rentals. Filed by the Department of Community Services on behalf of the
Carmel Plan Commission.
*Updates to the report are in blue
Project Overview: Please view the attached revised draft based on discussion at the May 9 Committee
meeting.
Proposed Ordinance Revisions:
Several revisions were discussed by the Committee, which are highlighted in yellow in the revised
draft. Revisions include:
• Clarification on the effect of PUDs
• Potential revocation of a permit after 2 notices of violations or citations.
• Liability insurance requirement specifies per occurrence, renewed annually, with proof of
insurance/renewal delivered to DOCS.
• Added language to require that at least one of the members of the group be at least 21 years of age.
• No additional setback requirements.
• Replaced “Backyard” with “Yard” to be more encompassing.
Code Enforcement History:
As of May 15, there are 5 residential pools offered for rent in Carmel on the Swimply web platform. While
offerings come and go, 4 of the 5 current listings appear to have been previously active based on user reviews
(ranging from 2-17 reviews each). To date in 2024, the Code Enforcement division has not received any
complaints although it is early in the season. However, over the past couple of summer seasons DOCS along
with City Council members have received several reports and questions related to parking, noise and trespassing
at the same pool rental.
April 16, 2024, Plan Commission Meeting Recap:
Staff summarized the emergence of private residential rental platforms which now feature the hourly rental of
pools and other backyard facilities along with growing concerns from neighbors regarding the quite enjoyment
of their properties. The proposed ordinance would add a new definition, standards and an approval process for
what would be called “Non-Dwelling Short-Term Rentals,” which closely mirrors the format of the previously
adopted Short-Term Residential Rentals. While the definition, special exception approval process, and some
standards have been proposed in the ordinance, staff would like for the Committee to help determine some
reasonable limitations such as the number of rentals, or if additional setbacks would be appropriate. City
Councilor Jeff Worrell and other members of the public spoke generally in favor of the proposal and
encouraged communication. Three of the speakers shared some of their experiences with a pool rental in their
neighborhood, which has received complaints in recent years. Members of the Plan Commission had questions
about the relation of this ordinance to corporate owned properties, HOA covenants, applicability to PUDs, and
how to communicate the proposal to residents. The ordinance was sent to the combined Plan Commission
Committee with final voting authority.
May 9, 2024, Combined Committee Meeting Recap:
Staff gave a brief summary of the ordinance and then urged the Committee to discuss reasonable limitations on
the size and number of rentals to be allowed over time. The Committee had questions regarding PUDs, liability
insurance, and various scenarios in how to apply calendar year vs. approval year, and suggested some revisions.
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Councilor Worrell assisted with the discussion. The legal department suggested a handful of technical revisions.
The Committee confirmed the proposed operating hours and group size and recommended a maximum of 1
rental per month, each rental a maximum of 5 hours, and at least one in each group at least 21 years of age. To
maintain momentum, the ordinance was sent back to the full Plan Commission Committee with amendments as
stated.
Recommendation:
The Department of Community Services recommends this ordinance be sent to the City Council with a
Favorable Recommendation if the revisions appropriately address the Committee discussion.
There is no hard deadline on this proposal so the Plan Commission is encouraged to take as much time as
needed to put our best draft forward; however, we should be cognizant of the approaching summer season.
5/16/2024
Ordinance Z-
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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
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Ordinance Z-
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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
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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
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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
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Ordinance Z-
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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
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Ordinance Z-
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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
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ATTEST: 247
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Ordinance Z-
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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
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Prepared by: Sergey Grechukhin, Transactions Chief, One Civic Square, Carmel, IN 46032 269