Garfield Township could allow short-term rentals in certain commercial areas under proposed zoning changes, which township officials are considering in light of potential legislation that would allow communities to regulate but not outright ban short-term rentals in Michigan. Garfield Township planning commissioners will also hold a public hearing August 14 on changes that would allow triplexes and quadplexes as a use by right in the R-3 (multiple family residential) district – an effort to create more flexibility in building housing.  

Garfield Township Deputy Planning Director Stephen Hannon told planning commissioners that legislation addressing short-term rentals (STRs) in Michigan is “an idea that seems to not be going away.” The latest proposed bill, House Bill 5438, would create a statewide STR database and introduce a STR tax that would primarily go back to the local government where the rental is located. “Currently, local units of government have no dedicated revenue source to assist with the public costs of tourism,” staff noted in a memo.

Language in the bill would allow communities to “enact and enforce reasonable regulations” for STRs, and to revoke STR permits when owners violate those regulations. Notably, however, it states that communities can’t outright prohibit STRs, as Garfield Township currently does. Though it’s not clear if or when the legislation will pass – it’s been in committee since February – Hannon suggested that township leaders get ahead of the curve and start preparing for its possible enactment by identifying areas where STRs could be allowed.

Township residents have expressed the most concern about allowing STRs in residential neighborhoods, Hannon said. He therefore proposed considering allowing them in three commercial areas: general commercial (C-G), planned shopping center commercial (C-P), and highway commercial (C-H). STRs are “often compared with hotels,” Hannon said, and hotels are already allowed in those three districts. Township Trustee Molly Agostinelli – who sits on the planning commission – liked that approach, saying it could help encourage growth at properties like the Cherryland Center (pictured) while keeping STRs out of residential neighborhoods.

“We want to continue to develop the malls,” she said. “Those are areas that it would fit. We might see some new construction there. We might see some really innovative uses there.” Planning Commission Chair Joe McManus agreed the move “could really incentivize redevelopment in those areas.”

Planning Commission Vice Chair Chris DeGood said the township should clearly define a “licensee” in any new STR rules, noting corporations and investment groups often buy up vacation units. He also asked to see a map of the proposed zones where STRs could be located and discussed the importance of regulating issues like noise and ensuring units are safe and up to code.

“This is a complicated, hairy issue, and we've been able to avoid it for a long time by kind of digging in our heels and saying ‘no,’” DeGood said. “We just got to look at all the different aspects, and you guys have made a great start.” While Planning Commissioner Robert Fudge said creating an STR licensing process in Garfield Township will mean a “paper nightmare” for whoever administers the program, he agreed it was a good idea to start preparing for STR legislation to pass in Michigan. “We want to get ahead of the game,” he said.

In addition to agreeing to continue the STR discussion at upcoming meetings, planning commissioners Wednesday voted to set an August 14 public hearing on zoning changes that could allow for more housing density in Garfield Township. The R-3 (multiple family residential) zoning district already allows for apartments, but new changes would allow triplexes and quadplexes as a use by right in that district as well. Staff said in a memo that the changes would “provide more lenient requirements for additional housing choices.”

McManus noted the changes would only add density to a zone already intended for multi-family housing, not in other residential neighborhoods. Agostinelli said the township is “trying to encourage more density,” particularly since there aren’t many lots left to build on in Garfield Township. That’s especially true when constructing housing geared toward low and moderate-income groups, Agostinelli said. “We’re trying to get to a point where we would be able to have smaller houses and smaller lots,” she said.

Approving the changes will require two public hearings, including one at the planning commission and then one at the township board of trustees, according to the staff memo.