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Carmel ordinance sets 10% cap and a registration regime for rental dwellings; fines, registration process described
Summary
Speakers described a newly approved Carmel ordinance that caps rentals in platted neighborhoods, establishes a registration and permit program administered by city staff, and sets civil penalties for noncompliance.
Carmel city leaders approved a rental-cap ordinance that restricts the share of rental dwellings in platted neighborhoods and establishes a registration and permitting regime with civil penalties for noncompliance, a city staff member told a neighborhood association meeting.
The ordinance limits rentals to 10% of homes in a platted subdivision with more than 10 homes and requires residential rental property owners to register with the city. The measure allows staff to revoke permits for properties that generate repeated emergency calls or code violations, attendees were told.
A city staff member explained that the ordinance “is now” on the books and staff are building the registration system and outreach. The staff member said the ordinance requires owners of existing rental properties to register; failure to register carries civil penalties. The fines described during the meeting were: $500 for failure to register a residential rental dwelling; an initial $2,500 fine for letting a residence be rented without a permit; and $100 per day for each day the unit remains noncompliant after notice.
Meeting participants from multiple homeowner associations discussed how they sought declaration amendments or caps in their neighborhoods. Cheryl Wessel, representing the Kingswood HOA, described a recent local amendment effort: “I collected the signatures on my own, because I could divide the neighborhood up into sections and could keep track of where I had been,” she said, describing a successful campaign to change her neighborhood’s governing documents to restrict rentals.
Speakers said the ordinance includes enforcement provisions including permit revocation for properties with multiple EMS/fire/police runs and penalties for ongoing violations. The city will develop a public registry and outreach materials; staff said they aim to make implementation transparent and to notify out‑of‑state property owners through the registry process.
Attendees discussed alternatives such as a three‑year owner‑occupancy requirement for eligibility to convert a home to a rental and the difficulty of amending covenants because of high signature thresholds. Several HOA representatives said they had worked with attorneys to draft declaration language and had used door‑to‑door signature drives to secure the required approvals.
City staff said the registration system is being developed now and recommended HOAs watch for official outreach and guidance once staff publish the registration portal.
