Carmel Council discusses ordinance to limit corporate rentals amid community concerns

The Finance, Utilities, and Rules Committee of the Carmel City Council convened on May 13, 2025, to discuss several pressing issues, primarily focusing on ordinance D-2770-25, which addresses the growing concern of corporate rentals in residential neighborhoods.

The meeting began with public comments, where residents expressed their support and concerns regarding the ordinance. Lawrence McCormack, a Carmel resident since 2016, highlighted the negative impact of corporate rentals on his neighborhood. He noted an increase in out-of-state rental companies purchasing homes, which has made homeownership unattainable for many first-time buyers. McCormack urged the council to pass the ordinance to protect community interests and maintain neighborhood integrity.

Rick Anderson, representing his homeowners association (HOA), echoed McCormack's sentiments, advocating for a cap on rental properties to prevent corporate entities from dominating the housing market. He emphasized the need for local governance to address the issue effectively.

Ed Shaughnessy read a letter from his HOA board president, Susan McClain, who shared her dual perspective as a homeowner and realtor. She expressed concerns about the detrimental effects of rental properties on neighborhood values and the challenges of implementing rental restrictions within their community.

Conversely, several speakers opposed the ordinance. Tom Lazara, a long-time Carmel resident and real estate professional, argued that the ordinance was unnecessary and could lead to gentrification. He emphasized that homeowners associations should enforce existing rules rather than impose new regulations.

Chris Pryor, representing the MiBoer Realtor Association, criticized the ordinance as a violation of property rights and claimed it would disrupt the rental market, potentially driving up rents. He pointed out that institutional buyers have not significantly impacted the Carmel housing market, citing a lack of recent purchases by such entities.

Jason Beyer, another resident, supported the ordinance, sharing personal experiences of neighborhood changes due to high rental turnover. He expressed concern about the long-term implications for community dynamics and property values.

The committee concluded the public comment section and moved on to the agenda, indicating a structured approach to addressing the various viewpoints presented. The discussions highlighted the ongoing tension between maintaining community standards and the rights of property owners in Carmel. The committee's next steps will likely involve further deliberation on the proposed ordinance and its potential implications for the city's housing landscape.