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Shelby council approves housing covenants, $22,500 new-construction grant and sets zoning hearing

Shelby City Council · June 1, 2026
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Summary

The Shelby City Council approved updated housing covenants allowing duplexes and townhomes, approved a $22,500 grant incentive for new-home construction with an income cap of $200,000, and set a zoning public hearing for Feb. 20, 2024.

The Shelby City Council approved updated housing covenants and a new grant incentive at its Feb. 6, 2024 meeting, moves aimed at encouraging new housing development in and near the city.

Pat Honeywell, council member, moved to approve the revised covenants that add options for duplexes and townhomes; Karen Schlueter seconded the motion and the roll call vote was all ayes. The council also approved a new housing grant incentive of $22,500 for new construction, with household earnings eligibility not to exceed $200,000.

The council set a public hearing on a zoning recommendation for Feb. 20, 2024. Council members encouraged developers and applicants to work with the city’s realtor while proposals are refined.

Votes at a glance: the housing covenants amendment was approved (motion carried, roll call: all ayes); the $22,500 new-construction grant incentive was approved (motion carried, roll call: all ayes); a zoning public hearing was scheduled for Feb. 20, 2024 (motion carried, roll call: all ayes). Additional meeting actions included setting the Tax Levy hearing for April 2, 2024 and authorizing purchase of a PA system for city events for approximately $2,000 (each approved by unanimous roll call as recorded).

Why it matters: Council members said the changes are intended to broaden housing types available in Shelby and to provide a direct incentive to spur new construction. The income cap and the grant amount define the initial eligibility rules; further zoning action will be considered at the Feb. 20 hearing.

What’s next: The zoning public hearing on Feb. 20 will consider the planning staff’s recommendation and any public comment; the council can adopt or modify zoning recommendations after that hearing.