East Lansing officials are discussing plans to limit new rental units in one part of the city. Residents are petitioning for rental restrictions in the Glencairn neighborhood.
The city held an informational session this week to teach community members about the rental restriction overlay district ordinance.
WKAR’s Arjun Thakkar has been covering the issue and spoke with WKAR’s All Things Considered host Sophia Saliby about what to expect from the potential zoning change.
Interview Highlights
On how rental restriction overlay districts work
They essentially allow residents to create districts or areas where new rental properties are restricted. Landlords who already have rental licenses in a district are allowed to maintain them, but anyone who's seeking to put additional properties up for rent in that district would be very limited, or in some cases, they're even prohibited from doing so.
On how East Lansing uses the zoning rule
The first step for a resident is to map out a neighborhood that they want to be restricted in rentals, and collect signatures of support from around two-thirds of the residents living there. Then that district could be considered by city officials to be approved for rental restrictions.
Now since this law was enacted, the city has approved 20 overlay districts restricting new rental licenses.
On the next steps for the Glencairn neighborhood
Officials are expected to hold additional public meetings in the coming weeks about this new proposed district in the Glencairn neighborhood. The Planning Commission and city council will obviously hear from residents before the council takes their final vote on whether rental units should be restricted there.
Interview Transcript
Sophia Saliby: East Lansing is considering plans to limit new rental units in the Glencairn neighborhood. The petition would create another of what's called a rental restriction overlay district in the city. Officials held an informational session this week to teach community members about the ordinance and its impact on East Lansing housing. WKAR’s Arjun Thakkar was at the meeting and joins me now. Hi, Arjun.
Arjun Thakkar: Hey, Sophia.
Saliby: Can you first explain what exactly a rental restriction overlay district is?
Thakkar: Sure. If a city allows for rental restriction overlay districts, that means they essentially allow residents to create districts or areas where new rental properties are restricted. Landlords who already have rental licenses in a district are allowed to maintain them, but anyone who's seeking to put additional properties up for rent in that district would be very limited, or in some cases, they're even prohibited from doing so.
Saliby: This type of policy, is it new to East Lansing?
Thakkar: It's not necessarily new. The East Lansing City Council began allowing this type of rental restriction in the early 2000s through an ordinance.
Creating a rental restriction overlay district is kind of a complicated process. But the first step for a resident is to map out a neighborhood that they want to be restricted in rentals, and collect signatures of support from around two-thirds of the residents living there. Then that district could be considered by city officials to be approved for rental restrictions.
Now since this law was enacted, the city has approved 20 overlay districts restricting new rental licenses. Those are generally located in neighborhoods to the north of the city's downtown. And as we've been discussing, a new district is being proposed in the Glencairn neighborhood.
Saliby: I have to assume that these policies impact a lot of different types of residents in the city: homeowners, renters, those who manage properties. Can you talk about how the districts have had an impact on who lives were in the city?
Thakkar: Yeah, officials really describe it as a tool that homeowners can use to kind of stabilize and control where rental licenses can be approved. So if residents don't want as many properties going up for rent in their neighborhood, this is really the way that they can do that.
As for renters and landlords who want to lease out a new property, this kind of really limits where they can do that in East Lansing. It blocks new licenses again from being approved. Existing rental units can be grandfathered in with some new licenses allowed in certain cases. But otherwise, a district essentially just tightens where rental properties can go on the market. And that also means those who don't want to purchase a home may have better luck finding a rental unit elsewhere.
Saliby: How are people in the city reacting to these rental restrictions and also this new one that's being proposed?
Thakkar: At this week's informational meeting, residents generally expressed support for having the districts. Some were more critical and said it could make it harder for renters to find a place to live in the city.
As for the current Glencairn district being discussed, other community members said they'd like that district to be expanded so their neighborhood could be included under the rental restrictions.
Here's what city planner Landon Bartley had to say:
Landon Bartley: Sometimes people are going to say, “I wanted to be in this district, and I didn't even know about it.” And others are going to say, “I got into this district and I didn't want to be in it.” So that's why we have public hearings. That's why we have informational meetings like this.
Thakkar: So the city is urging residents who have concerns to share them with the planning commission and city council who can modify the boundary lines for a district and have the final say on its approval.
Saliby: What's next for this specific rental restriction district that could be coming for Glencairn?
Thakkar: Officials are expected to hold additional public meetings in the coming weeks about this new proposed district in the Glencairn neighborhood. The Planning Commission and city council will obviously hear from residents before the council takes their final vote on whether rental units should be restricted there.
Saliby: Arjun Thakkar is our politics and civics reporter. Thank you for being here.
Thakkar: Thank you for having me.
This conversation has been edited for clarity and conciseness.
