HomeMy WebLinkAboutZ-690-24 Non-Dwelling Short-Term Rental Ordinance
6/07/2024
Ordinance Z-690-24
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Sponsors: Councilors Worrell and Minnaar
ORDINANCE Z-690-24
AN ORDINANCE OF THE COMMON COUNCIL OF THE
CITY OF CARMEL, INDIANA
An Ordinance establishing Non-Dwelling Short-Term Rental Use-Specific Standards and Definitions in the
Unified Development Ordinance.
Synopsis:
This Ordinance establishes non-dwelling short-term rental use-specific standards to address pool, backyard,
accessory buildings, and other structures or facilities rentals.
WHEREAS, the City wishes to ensure the public health, safety and welfare of all its residents, and
uphold the property rights of the City residents who own real property located in Residential Districts; and
WHEREAS, short-term rental offerings have expanded to include pools, backyards, accessory
buildings, and other facilities (collectively Non-Dwelling Short-Term Rentals); and
WHEREAS, Non-Dwelling Short-Term Rentals are offered exclusively and independently from
dwellings; and
WHEREAS, Non-Dwelling Short-Term Rentals present concerns and impact neighboring properties
in a similar way as Short-Term Residential Units, and such impact can be further exacerbated because Non-
Dwelling Short- Term Rentals are frequently rented on hourly basis increasing the number of individuals who
use the property throughout the day; and
WHEREAS, to mitigate negative effects on the quality of life, quiet enjoyment of properties and
residential neighborhoods integrity, the City wishes to establish Use-Specific Standards for Non-Dwelling
Short-Term Rentals; and
WHEREAS, it is in the public interest that Non-Dwelling Short-Term Rentals be reasonably regulated
and that due process be provided to all affected property owners to protect the quality of life, safety of residents,
and quiet enjoyment of properties as well as to conserve property values in Residential Districts; and
WHEREAS, pursuant to Indiana Code 36-7-4-602 the Common Council is authorized to amend the text
of the unified development ordinance; and
WHEREAS, pursuant to Indiana Code 36-7-4-610 and City of Carmel Ordinance D-2391-17, the
Carmel Unified Development Ordinance is incorporated by reference into the Carmel City Code;
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Carmel, Indiana,
that, pursuant to IC 36-7-4-600 et seq. and after Docket No. PZ-2024-00041 having received a favorable
recommendation from the Carmel Advisory Plan Commission on Tuesday, May 21, 2024, it hereby adopts this
Ordinance to amend the Carmel Unified Development Ordinance (Ordinance Z-625-17, as amended), to read
as follows:
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Section I: Amend Article 1 by adding BZA Hearing Officer Filing Fees for Non-Dwelling Short-Term Rental
review.
1.29 Filing Fees
BZA Hearing Officer
• Residential $207.25 plus $120.50 for each additional
• Commercial petition $849.50 plus $420.50 for each additional
• Special Exception, Group Home $104 plus $104 per bedroom
• Special Exception, Short Term Rentals $115.25
• Renewal of Special Exception $58.00
Section II: Amend Article 2 by adding Non-Dwelling Short-Term Rental as a Residential Special Exception
for the following Districts:
2.03 S1 District Intent, Permitted Uses, Special Uses and Special Exceptions
Residential Special Exception – Non-Dwelling Short-Term Rental
2.05 S2 District Intent, Permitted Uses, Special Uses and Special Exceptions
Residential Special Exception – Non-Dwelling Short-Term Rental
2.07 R1 District Intent, Permitted Uses, Special Uses and Special Exceptions
Residential Special Exception – Non-Dwelling Short-Term Rental
2.09 R2 District Intent, Permitted Uses, Special Uses and Special Exceptions
Residential Special Exception – Non-Dwelling Short-Term Rental
2.11 R3 District Intent, Permitted Uses, Special Uses and Special Exceptions
Residential Special Exception – Non-Dwelling Short-Term Rental
2.13 R4 District Intent, Permitted Uses, Special Uses and Special Exceptions
Residential Special Exception – Non-Dwelling Short-Term Rental
2.15 R5 District Intent, Permitted Uses, Special Uses and Special Exceptions
Residential Special Exception – Non-Dwelling Short-Term Rental
2.17 UR District Intent, Permitted Uses, Special Uses and Special Exceptions
Residential Special Exception – Non-Dwelling Short-Term Rental
Section III: Adopt Article 5: Development Standards, Section 5.74: US-28 Non-Dwelling Short-Term Rental
Use-Specific Standards as follows:
This Use-Specific Standards (US) section applied to the following zoning districts:
S1 S2 R1 R2 R3 R4 R5 UR
[to be included in a footnote: PUD District Ordinance shall control unless it is silent on
applicable rental regulations. All PUDs parcels shall be reviewed as their underlying zoning,
such underlying zoning shall be determined by the Director of Community Services]
A. Purpose: It is the purpose of this Section to benefit the general public by minimizing adverse impacts
on established residential neighborhoods in the City and the owners and residents of properties in
these neighborhoods resulting from the conversion of residential properties or portions thereof to
tourist, entertainment, transient and/or temporary uses.
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B. Special Exception Eligibility: A Permanent Resident of a Dwelling located in a Residential District
may use a portion of the real estate where such Dwelling is located as a Non-Dwelling Short-Term
Rental if:
1. The Permanent Resident applies for and is granted a Special Exception, pursuant to Section 9:08:
Special Exception (Group Homes and Short-Term Residential Rentals) hereof.
2. The Permanent Resident maintains a valid Registered Retail Merchant Certificate;
3. The Permanent Resident posts a clearly printed sign in the clearly-visible location within the
rented space that provides information regarding the location of lifesaving equipment, fire
extinguishers, gas shut off valves if gas-operated equipment is present, evacuation exits, and
emergency contact information.
C. Required Information for Application: Both the initial application and any renewal application for a
Special Exception permit shall contain the following:
1. Information sufficient to show that the applicant is the Permanent Resident of the real estate
where Non-Dwelling Short-Term Rental is located, and that the applicant has a Registered Retail
Merchant Certificate. Permanent residency shall be established by showing that the Unit is listed
as the applicant’s residence on at least two (2) of the following: motor vehicle registration;
driver’s license; voter registration; tax documents showing the unit as the applicant’s primary
residence for a standard homestead credit; or utility bill. A renewal application shall contain
sufficient information to show that the applicant is a Permanent Resident and has occupied the
real estate for at least two hundred seventy-five (275) days of the preceding calendar year.
2. Primary and secondary emergency contact information, including mailing address, phone
number or email address. Upon approval of a Special Exception, emergency contact information
shall be shared with the Carmel Police Department.
3. Any other information as may be required by the Director to evaluate the application.
D. Limitations:
1. The term of a Special Exception permit granted to a Permanent Resident shall be one (1) year.
The grant of a Special Exception permit provides an exception only to the other requirements of
this Ordinance. It does not confer a right to lease, sublease, or otherwise use a residential property
or portions thereof as a Non-Dwelling Short-Term Rental where such use is not otherwise
allowed by law, a homeowners association agreement or requirements, any applicable covenant,
condition, and restriction, a rental agreement, or any other restriction, requirement, or
enforceable agreement. Nothing in this Section shall relieve any person or facilitator of the
obligations imposed by any and all applicable provisions of state law and the Carmel City Code,
including but not limited to those obligations imposed by Indiana tax laws and rules. Further,
nothing in this Section shall be construed to limit any remedies available under any and all
applicable provisions of state law and the Carmel City Code.
2. If, after obtaining a permit, the real estate is subject to two (2) notices of violations or citations
for violation of any provision of this Section, the Carmel City Code or state law that is
attributable to the use of the real estate as a Non-Dwelling Short-Term Rental, the permit shall
be revoked. Director of the Department of Community Services shall notify the Permanent
Resident of the permit revocation via first class mail and/or posting such notice at the real estate.
3. In addition to all of the Limitations of Subsection 5.74D(1) above, Non- Dwelling Short-Term
Rental shall have the following use-specific limitations:
a. Pools:
i. Permanent Resident must be at the property at all times during a Non-Dwelling Short-
Term Rental operation.
ii. Permanent Resident must obtain premises liability insurance in the amount not less than
One Million Dollars ($1,000.000.00) per occurrence. The insurance must be renewed
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annually. The certificate of such insurance shall be delivered to the Department of
Community Services prior to listing the real estate as a Non-Dwelling Short-Term Rental.
Proof of annual insurance renewal shall be delivered to the Department of Community
Services.
iii. Operation hours shall be between 10 A.M and 8 P.M.
iv. A group size for a single Non-Dwelling Short-Term Rental shall not exceed ten (10)
individuals. At least one of these individuals shall be at least twenty-one (21) years of age.
v. Number of Non-Dwelling Short-Term Rentals shall not exceed 1 day per calendar month.
The rental shall not exceed five (5) hours.
vi. Permanent Resident must provide sufficient guest parking that must be contained within
the real estate.
vii. Permanent Resident must comply with any applicable state laws, rules and regulations
relating to pool operation.
viii. Permanent Resident shall ensure that renters do not trespass on the neighbors’ properties.
b. Yards and other facilities (includes decks, patios, accessory structures etc.):
i. Permanent Resident must be at the property at all times during a Non-Dwelling Short-
Term Rental operation.
ii. Permanent Resident must obtain premises liability insurance in the amount not less than
One Million Dollars ($1,000.000.00) per occurrence. The insurance must be renewed
annually. The certificate of such insurance shall be delivered to the Department of
Community Services prior to listing the real estate as a Non-Dwelling Short-Term Rental.
Proof of annual insurance renewal shall be delivered to the Department of Community
Services
iii. Operation hours shall be between 10 A.M and 8 P.M.
iv. A group size for a single Non-Dwelling Short-Term Rental shall not exceed ten (10)
individuals. At least one of these individuals shall be at least twenty-one (21) years of age.
v. Number of Non-Dwelling Short-Term Rentals shall not exceed 1 day per calendar month.
The rental shall not exceed five (5) hours.
vi. Permanent Resident must provide sufficient guest parking that must be contained
within the real estate.
Section IV: Amend Article 9, Section 9.08 by renaming said Section to “Special Exception” and adding Non-
Dwelling Short-Term Rental to Section’s applicability as follows:
9.08 Special Exception
Applicability: This Special Exception section only applied to Group Homes, Short Term
Residential Rental, and Non-Dwelling Short-Term Rental uses.
Section V: Amend Article 9, Section 9.08(B)(5) by adding reference to Section 5.74(D): Limitations as
follows:
B. Procedure:
5. Approval or Denial of the Special Exception Application: Upon approval of a Special Exception,
the Hearing Officer shall inform the applicant that the applicant may apply to the Director of
Community Services for Improvement Location Permits (if necessary) or may commence the
Special Exception if no permits are required. Failure of the Hearing Officer to inform the
applicant of the time limits set forth in Section 5.72(D): Limitations, Section 5.73(D):
Limitations or Section 5.74(D): Limitations, as applicable, shall not relieve the applicant of
complying with said Section.
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Section VI: Amend Article 9, Section 9.08 by adding subsection G as follows:
G. Special Exception Non-Dwelling Short Term Rental Decisions; Commitment: Pursuant to IC
36‑7‑4‑1015, a Hearing Officer may, as a condition to any approval of an application for a Special
Exception, require or allow the owner to make any or all of the following commitments concerning
the use of the property:
1. That the Special Exception will fully comply with Section 5.74: Non-Dwelling Short‑Term
Rental Use‑Specific Standards.
2. That the Special Exception will be limited to thirty (30), sixty (60), or ninety (90) days during a
calendar year, at the discretion of the Hearing Officer.
3. If the Hearing Officer determines that a homeowners association or similar entity has established
limitations or prohibitions that apply to the property, that the owner’s implementation of the
Special Exception will not result in the violation of any such limitations or prohibitions.
Section VII: Amend Article 11 by adding the following definitions:
Short-Term Rental; Non- Dwelling: Any outdoor or indoor pool, yard, patio, deck, accessory building,
and other non-dwelling structure or facility that is rented or leased to transient guests by a Permanent
Resident of the property where such non-dwelling rental is located.
Section VIII: The Common Council hereby delegates Department of Community Services to correct and codify
numbering, pagination, cross-references, table of contents, Appendices, and land use matrix of the Unified
Development Ordinance affected by this Ordinance.
Section IX: All prior Ordinances or parts thereof inconsistent with any provision of this Ordinance are hereby
repealed.
Section X: This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor.
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ADOPTED by the Common Council of the City of Carmel, Indiana this ________ day of
______________________ 2024, by a vote of _________ ayes and ________ nays.
COMMON COUNCIL FOR THE CITY OF CARMEL, INDIANA
______________________________ ______________________________
Anthony Green, President Adam Aasen, Vice-President
______________________________ ______________________________
Jeff Worrell Teresa Ayers
______________________________ ______________________________
Shannon Minnaar Ryan Locke
______________________________ ______________________________
Matthew Snyder Rich Taylor
______________________________
Anita Joshi
ATTEST:
__________________________________
Jacob Quinn, Clerk
Presented by me to the Mayor of the City of Carmel, Indiana this ____ day of
____________, 2024, at _______ __.M.
_______________________________
Jacob Quinn, Clerk
Approved by me, Mayor of the City of Carmel, Indiana this ___ day of
______________, 2024, at ______ __.M.
________________________________
Sue Finkam, Mayor
ATTEST:
_________________________________
Jacob Quinn, Clerk
Prepared by: Sergey Grechukhin, Transactions Chief, One Civic Square, Carmel, IN 46032
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