The Town of Normal is proposing a ban on new Airbnbs and other short-term rentals [STRs] in its single-family neighborhoods.
The town council will vote on the plan during its 7 p.m. Monday meeting. The proposal comes after the town implemented a six-month moratorium on new residential short-term rental units last November so it could explore long-term options.
The proposal sets a five-year grace period for existing rentals in residential districts [zoned R-1 and R-2].
“This action attempts to preserve the integrity and character of single-family neighborhoods,” town staff said in a memo to the town council.
The town would continue to allow the rental units in multi-family [R-3] and commercial districts.
Town staff said those areas tend to have higher turnover and that makes them more suitable for short-term rental units.
The town began to study STRs last year amid complaints that some units were the source of excessive noise and traffic congestion. Town staff also said many rental units were not registered with the town and they were contributing to the housing shortage and driving up housing costs by pulling from existing housing stock.
Last November, the town required all STR owners to register with the town by Dec. 1 when the moratorium was to start. At the time, the town said 21 were registered and 42 had not.
A town review shows as of June 3, 66 STRs are registered with the town. Forty-nine of those are in R-1 and R-2 districts and the remaining 17 are in R-3 and commercial districts.
Normal's director of planning and zoning Mercy Davison said the town has five properties that are currently unregistered. Town staff attorney Jason Querciagrossa said the town considers nonregistered operators to be code violators.
"In this case, we reach out to non-compliant business owners as we become aware of them and escalate matters accordingly. Ultimately, non-compliant businesses can face fines or injunctive actions if they continue to operate," he said.
Town staff say studies show short-term rental investments can spur neighborhood revitalization, but that's not happened in Normal. The town's study shows 29 STRs in the town have seen some improvements since 2019 — at an average investment of $15,650.
"STRs are not driving neighborhood reinvestment and revitalization," town staff said in the memo.
Town staff say the five-year grace period gives rental unit owners time to recoup their investment.
