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1. Why does the City have Residential Rental Restriction Overlay Districts?

The Residential Rental Restriction Overlay District Ordinance was established in 2004. The purpose of the ordinance is to allow owners of property within residential neighborhoods the opportunity to preserve the attractiveness, desirability, and character of residential neighborhoods by precluding all or certain types of rental properties and thereby avoiding the potential negative effects rental properties can have on a neighborhood with regard to property deterioration, increased density, congestion, noise and traffic levels and reduction of property values.

2. Where are the R-1, R-2 and RM-8 Districts located within the City?

Many residential neighborhoods in East Lansing have one of these three zonings;

• R-1, low density, single-family residential district
• R-2, medium density, single-family residential district
• RM-8, planned unit development district

3. What does a Class 1 rental license allow?

A Class 1 rental license is for owner-occupied properties where the owner wants to have a roomer reside with the owner and the owner's family. All owners MUST own AND reside at a property for at least 18 months PRIOR to submission of a rental license application.

4. What defines a family?

East Lansing’s Zoning Code defines a family as one person, two unrelated persons; or where there are more than two persons residing in a dwelling unit, persons classified constituting a family shall be limited to:

• Husband
• Wife
• Son
• Daughter
• Father
• Mother
• Brother
• Sister
• Grandfather
• Grandmother
• Grandson
• Granddaughter
• Aunt
• Uncle
• Step children
• Legally adopted children
• Any combination of the above persons living together in a single dwelling unit

5. What is the difference between R-O-1, R-O-2 and R-O-3?

• Residential Rental Restriction Overlay District R-O-1: prohibits issuance of any new rental licenses, including Class I rental licenses.
• Residential Rental Restriction Overlay District R-O-2: allows the current property owner to apply for a Class I rental license if they owned the property at the time the overlay is approved. When properties are sold after the time in which the overlay was approved the property is no longer eligible to apply for a Class I rental license.
• Residential Rental Restriction Overlay District R-O-3: allows owners to apply for a Class I rental license. However, the property owner does not need to have owned the property prior to the approval of the overlay district.

6. What about the rental property already in the proposed area?

The overlay restriction does not impact properties that already have a rental license. However, if a property owner allows a rental license to remain expired more than 12 months then the property would lose any prior legal non-conforming grandfathering.

7. What are the steps required to petition for a Residential Rental Restriction Overlay District?

1. Contact the Department of Planning, Building & Development to obtain a petition furnished by the City Clerk. A city planner will provide you with the necessary information needed regarding who can circulate a petition, who can sign a petition, requirements for establishing petition boundaries, and the time frame allowed for collecting signatures. They will also confirm that the boundaries of the area meet the legal requirements of the residential rental restriction overlay district that is being requested. The Department of Planning, Building & Development is located on the second floor of City Hall.
2. After acquiring signatures from one owner of at least two-thirds of all parcels within the proposed boundary of the district is obtained, the petition is submitted to the City Clerk for verification. Remember only one owner of each parcel counts toward the required number of signatures. If a person owns more than one parcel of property within the proposed district, they may sign the petition for each parcel they own. If there are not sufficient signatures the Clerk will let the contact person know how many additional signatures are needed to validate the petition. If the Clerk concludes that sufficient valid signatures have been presented, the petition will be referred to the Department of Planning, Building & Development. Within 30 days of receipt, the Department of Planning, Building & Development will determine whether the petition conforms to the requirements of the Rental Restriction Overlay District.
3. If it is determined that the petition is in conformity with the requirements, the Zoning Administrator will draft the appropriate ordinance and forward it to the City Council for introduction.

8. How is a petition verified?

The petition is reviewed by the City Assessor to confirm that all signatures are from parcel owners within the proposed boundary and that there is only one signature per parcel and the signature matches the Assessing record of ownership for that parcel. This determination is provided to the City Clerk. If valid, the Clerk will then forward the petition to the Department of Planning, Building & Development and, if not valid the Clerk will notify the contact person to let them know how many additional signatures are needed to validate the petition.

9. How is a proposed overlay reviewed and acted on?

1. Once City Council introduces a rental restriction overlay ordinance, a moratorium is placed on the issuance of any initial rental licenses within the proposed boundary of the district. This will apply to any applications submitted prior to or subsequent to the ordinance introduction. Any rental license applicant may request a refund of the application fee if an overlay is approved.
2. Next City Council refers the ordinance to the Planning Commission for review and recommendation to City Council. The Planning Commission will hold a public hearing at one meeting and typically at a subsequent meeting, take action to recommend City Council approve or deny the ordinance. When Council receives the Commission’s recommendation, the City Council schedules and holds a second public hearing before taking final action to approve or reject the ordinance.
3. If an ordinance introduced is denied, a subsequent ordinance for a rental restriction overlay district for the same parcels cannot be introduced again for another year.
4. An ordinance which is not adopted within six months of introduction will be deemed denied by lack of action.

10. How is an overlay district reversed or amended?

No sooner than one year after an overlay is approved, a neighborhood may petition to modify an approved overlay by obtaining signatures from one owner of at least two-thirds of all parcels within the proposed boundary of the district. The process is the same process used to develop the original overlay district.