Adoption or enforcement of an ordinance, resolution, regulation, policy, or rule concerning use of property as rental property

Sec. 3.6. (a) Except as provided in subsections (c) and (d), a unit may not adopt or enforce an ordinance, resolution, regulation, policy, or rule that:

(1) prohibits or restricts an owner of a privately owned residential property from using the property as a rental property; or

(2) has the effect of prohibiting or restricting the use of property as a rental property.

(b) This section does not prohibit a unit from enforcing any:

(1) generally applicable health and safety regulations;

(2) building codes, fire codes, or reasonable occupancy standards; or

(3) registration or inspection requirements set forth in this chapter, provided the requirements do not operate to impose a cap or limit described in subsection (a).

(c) A unit that has adopted an ordinance, resolution, regulation, policy, or rule before January 1, 2026, other than an ordinance, resolution, regulation, policy, or rule described in subsection (d), that does not comply with subsection (a) is exempt from the provisions of this section until January 1, 2028, at which time a unit described in this subsection shall comply with this section.

(d) A unit that has adopted a short term rental ordinance, resolution, regulation, policy, or rule before January 1, 2018, in compliance with IC 36-1-24 (as enacted in HEA 1035-2018) is exempt from this section.

As added by P.L.157-2026, SEC.229.