Council narrows where timeshare-style fractional ownership can operate, bars use in single-family zones

The Highland Park City Council on Sept. 8 approved a zoning-code amendment that defines "time share related uses," clarifies that such uses are distinct from short-term rentals, prohibits them in single-family residential districts, and allows them only as conditional uses in specified nonresidential commercial districts.

Planning staff said the amendment responds to a council directive to evaluate whether the zoning code should prohibit or regulate timeshare arrangements, after concerns were raised earlier this year. Director Fontaine explained that "time share related use" refers to a method of ownership and fractional or limited-time rights (as defined under the Illinois Timeshare Act) and that the amendment treats such arrangements differently than short-term rental regulations, which govern use rather than title.

Under the approved changes, time share related uses are added as conditional uses in several business districts (B-3, B-4 variants, B-5 and the CDR overlay) and are expressly forbidden as accessory or principal uses in single-family residential zoning. The amendment also clarifies that short-term rentals remain separately regulated and that short-term-rental rules do not by themselves authorize timeshare ownership.

Council members asked concrete questions about hypothetical family LLCs and fractional ownership. Director Fontaine and staff explained that the Illinois Timeshare Act governs the definition of timeshare ownership and that the city's intent is to clarify that fractional-title arrangements governed by that statute are not permitted in single-family neighborhoods and would require conditional-use review where allowed.

A member of the public, Howard Sirlin, addressed the council with an example of three families jointly owning a residence and related that joint ownership does not necessarily constitute a timeshare under the statutory definition. Planning staff acknowledged the statutory complexity but said the city is adopting statutory language to minimize ambiguity.

The council approved the ordinance; the clerk recorded six ayes, one nay and one member present (see actions). The vote record indicates the council discussed the item at length and that staff will update application and code guidance materials to reflect the new definition.

Ending: The code amendment clarifies how fractional ownership arrangements are regulated in Highland Park, restricting timeshare-style ownership from single-family neighborhoods and requiring conditional-use review in specified commercial districts.