Normal council approves ban on new short-term rentals in single-family zones, adds owner-occupied exception

The Normal Town Council on June 16 adopted an ordinance that bars new short-term residential rentals in R‑1 and R‑2 single-family zoning districts, phases out most existing short-term rentals in those districts over a five-year amortization period and creates an exception for owner-occupied properties that meet a new residency test.

Council-approved language requires an STR in R‑1 or R‑2 to be the owner occupant’s primary residence to qualify for a license; primary residence must be demonstrated by residing in the dwelling nine of the past 12 months or intending to reside nine of the next 12 months with two supporting documents such as utility bills, vehicle registration, deed or proof of homestead exemption. Legal counsel read the proposed exception into the record: "Notwithstanding subsection a, a property located in an r 1 or r 2 zoning district may be operated as a short term residential rental unit if that property is the primary residence of the owner occupant of the property." The ordinance includes an appeals path for owners who claim extraordinary investment that cannot be recouped within the amortization period.

The ordinance responds to issues staff and some residents described as recurring: complaints about frequent turnover of guests, parking and event-related impacts, and a concern that public-facing lodging-style businesses are not compatible with single-family residential zoning. Planning and Zoning Director Mercy Davison told the council the town…