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Build-to-rent restrictions proposed; new zoning ordinance delayed


Build-to-rent restrictions proposed; new zoning ordinance delayed

Nov. 20 -- The Decatur City Council put a proposed zoning ordinance on hold until spring on Monday, but it will consider changes to the existing zoning code during the holiday season that restrict build-to-rent homes and revise the definition of "family."

A unanimous council followed Councilman Billy Jackson's advice when it decided to table the zoning ordinance until March 3 while the city seeks to hire a planning director.

The city has been working on replacing its zoning and land-use ordinance, some of which is almost 70 years old, for six years. Multiple changes in the Planning Department and the COVID-19 pandemic delayed completion.

The proposed ordinance was finally up for a vote Monday but, at Jackson's urging, the council tabled it. The City Council previously decided at the Nov. 4 meeting to hire a search firm for $40,000 to find candidates for the planning director position.

Human Resources Director Richelle Sandlin said Tuesday that MGT, of Northbrook, Illinois, will conduct the search. She told the council that it's possible they could have a planning director hired by the end of January or the first of February.

Jackson said he thinks hiring a planning director, which the city hasn't had since 2008, and allowing the person to start the new job before approving the new zoning ordinance is "the proper thing to do."

He said the new director needs time to study the community and its growth patterns to make sure the proposed zoning ordinance fits the city.

"A planner has the expertise to do those things," Jackson said.

Council President Jacob Ladner suggested delaying the proposed zoning ordinance until March 3 and then reassessing the situation.

"If we've gotten nowhere, I will definitely support going ahead and moving forward with approval," Ladner said. "If we have somebody on board, then we can have a discussion with them about moving forward."

Councilman Kyle Pike said he thinks they need to set a date to revisit the proposed zoning ordinance, whether or not a planning director is in place.

"I don't just love delaying it," Pike said. "I don't agree that this has been rushed through, but I will support tabling it until March."

Councilman Carlton McMasters said he would support the delay but insisted the council didn't need to wait on build-to-rent restrictions and defining "family" for zoning regulations such as those relating to single-family homes.

"These two changes protect single family (zoning districts)," McMasters said.

He presented what he called "tighter changes" to the current zoning ordinance on build-to-rent homes and the definition of family.

"We've got a room full of folks adversely affected by something we've never seen in Decatur, and that's build to rent," McMasters said.

Build-to-rent homes, or BTR, are particularly a concern because a council-imposed moratorium against the practice ends Jan. 1, and McMasters said he doesn't think the council should extend the moratorium for a third time.

The ordinance proposed by McMasters reduces the number of allowed BTR homes in a subdivision from the previously proposed 20% to 10%. The proposal requires developers to declare the percentage when it submits a final plat for approval by the Planning Commission.

Some Burningtree area residents want an outright ban. BTR became an issue in August 2022 when developer Prominence Homes bought the third addition of the planned Foxwood Farms subdivision.

The Birmingham developer then advertised the homes for sale to investors as build-to-rent homes, and this upset residents.

The City Council passed a moratorium against BTR homes, although officials said they could not stop Prominence's plans. However, Prominence filed for bankruptcy and never finished the development. Shells of unfinished homes still stand along the road connected to Foxwood Drive Southeast.

Ruby Pointe Drive Southeast resident Erin Cossey told the council that residents would prefer creating separate zoning districts for BTR homes, so they can preserve and protect existing neighborhoods.

"If these developments are needed, which we've all heard you say are needed, let's make an easy path for them," Cossey said.

Cossey pointed out that she chose to live in the city instead of the county, so there's an expectation that city leaders protect homes in the city limits from issues like BTR homes.

However, McMasters said he doesn't think the rest of the City Council would support banning BTRs.

Ladner and Jackson said they have questions about how the city can enforce either the BTR restrictions or the limitations on what constitutes a family.

Ladner said he knows they can only enforce the BTR restriction on the front end.

"It seems very difficult to enforce after the homes are built," Ladner said. "If five or 10 people decide they want to rent their homes, I'm unclear how we can keep them from doing so even at the 10% requirement."

Jackson said the city has a real problem with rental properties that needs examination by city officials.

"I think I hear people saying they don't want the problems that we're already experiencing with rental properties at their doorstep," Jackson said. "Rental properties is something we're going to have to deal with either now or in the future. It is taking a toll on our city."

The second ordinance change McMasters presented creates a new definition of "family." He said he made the proposal because the current definition of family "is incredibly vague."

"The current definition is so loose we have halfway houses popping up in my district and throughout the city, and there's nothing we can do about it," McMasters said.

His proposal defines family as "one or more persons related by blood, marriage, adoption, or by some other legal custodial relationship, living as a single housekeeping unit in a dwelling unit, including persons who reside in the unit and are employed to care for a family member; or three unrelated individuals living as a single housekeeping unit in a dwelling unit.

"A family can also include up to three unrelated persons occupying a unit and living as a single, non-profit housekeeping unit, if any one or more of the three unrelated occupants is handicapped."

Jackson said he agrees with the proposed definition of family, "but how do you enforce it?"

Councilman Hunter Pepper previously said he supports McMaster's proposed definition of family because he believes the city has an undocumented immigrant problem that leads to households being resided in by numerous unrelated people.

City Attorney Herman Marks told the council that it needed to introduce both proposed ordinance changes at next week's Monday meeting so there's time to advertise the proposals.

Marks said state law requires that the city publish a legal notice of any proposed ordinance change at least 22 days before a public hearing and vote on Dec. 16, the last scheduled meeting of the year.

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