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Michiana council approves amended short-term rental ordinance, lifts moratorium
Summary
The Village of Michiana approved amendments to Short-Term Rental Ordinance 2025-02, setting a 40-rental cap, tightening occupancy and noise rules, creating a paid waiting list, increasing fines and lifting the STR moratorium effective Jan. 1, 2026.
The Village of Michiana unanimously approved amendments to its Short‑Term Rental Ordinance (Ordinance 2025‑02) and lifted the village’s moratorium on new permits effective Jan. 1, 2026. Council President Tim McCarthy read the ordinance changes and the council approved the second reading and the motion to lift the moratorium.
The ordinance sets a maximum cap of 40 permitted short‑term rentals, requires every STR to reapply each year with a renewal window of Jan. 1 through Mar. 15, and gives prior-year participants a right of first refusal for 2026. The ordinance establishes a waiting list for prospective owners with a $100 nonrefundable fee and ties occupancy limits to the number of legal bedrooms and Marion County septic capacity. It also sets a May 1–Sept. 30 rental season with a seven‑night minimum during that season and a two‑night minimum outside it. The rules prohibit marijuana use and fireworks at STR properties and require garbage and recycling bins to be pulled back from the street within 24 hours and at least 10 feet from the street.
Enforcement provisions were strengthened: police and the building commissioner are given ordinance‑defined authority to issue citations; fines increase substantially for second and third offenses. The ordinance requires minimum parking tied to allowable occupancy, and properties lacking adequate parking must reduce allowable occupancy. The ordinance also defines bedroom safety requirements and prohibits “rental stacking.” Attorney Sara Senica and council members emphasized that the text is detailed so citations will stand up in court.
During public comment several residents asked whether allocation should be by lottery rather than first‑come, and several urged clearer rules for pre‑existing bookings. One resident said that existing 2026 contracts booked through a commercial platform could face substantial cancellation penalties; council said it will review how to address already‑executed contracts while implementing the updated ordinance. The village attorney reiterated that no one has a legal right to rent in 2026 until they obtain a valid 2026 permit under the updated ordinance.
The council approved the ordinance and the moratorium lift by unanimous vote. The council directed staff and the attorney to post the final ordinance text and to provide clarifications to owners about how the rules will apply to existing and future bookings.
