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File #: 2024-0774    Version: 1 Name: Rental Property Regulations
Type: MOTION Status: IN COMMITTEE /COMMISSION
File created: 10/14/2024 In control: Committee of the Whole
On agenda: 11/4/2024 Final action:
Title: /Name/Summary Rental Property Regulations
Attachments: 1. Draft Ordinance - Rental Property Registrations
Date Ver.Action ByActionResultAction DetailsMeeting Details/Media Packet
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Title/Name/Summary
Rental Property Regulations
History
QUICKFACTS
See also Case 2024-0214

Purpose
In March 2024, the Board of Trustees passed an ordinance approving a 9-month Temporary Moratorium on Rental Property Registrations (Ordinance No. 2401). The main reasons for the moratorium were to address a decrease in owner-occupied housing units, and concerns over large national investors converting single family homes into rentals.

Staff embarked on a study to evaluate the challenges associated with rental licenses in the Village. Additionally, the working group reviewed the ordinances of other municipalities that have passed rental density caps, and met with the planning staff at the City of Columbia Heights, MN, and City of Champlain, MN, to better understand the potential challenges with passing an ordinance restricting rental density.

Staff combed through multiple data sources (including data from the US Census, American Community Survey, VOP rental license registration records, Police Department’s crime-free housing records, and Finance Department’s garbage sticker records), in an effort to confirm the rate of growth of the housing units in the Village, and specifically the growth of renter occupied units in the Village.

The data analysis indicate that renter occupied units account for 14% of all the housing units in Orland Park. Additionally, the findings point to a 4% increase in the number of renter-occupied units between 2010 to 2020 in Orland Park, compared to a 2% increase nationwide, and 3% increase in the state. The data also pointed out that the ownership of rental units by large national investors grew by 11 units over the past 7 years, and account for less than 2% of the rental housing stock.

Staff is recommending an ordinance to modify the rental registration ordinance. Learning from other municipalities, the proposed ordinance will cap the number of rental units to 10% of the housing units per Census block. Pre-approved or pre-establishe...

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