I have serious doubts about the propriety of this proposed ordinance in Greenwood. The mayor wants a ban on the rental of any newly constructed home for a 3 year period.
I think you could probably make it legal, by using the zoning and building permit processes to get the builder to agree to such a condition in exchange for permission to build. I understand the motivation — you have a number of builders softening the housing market which probably has deleterious effects on the community at large.
I don’t necessarily have much sympathy for large developers, who can address the pros and cons of such an ordinance up front and price and plan accordingly. But, it might tie a home buyer to his or her property in an unfair way. Say someone buys their home, plans to live there, but their situation changes 1.5 years later with the real estate market in a down phase — perhaps getting them upside down on their mortgage, making their only real option to rent the place out.
Councilman Keith Hardin seems to have a good head on his shoulders about this at any rate:
Some Greenwood City Council members, who will hear Henderson’s proposal tonight, like the idea behind it but are wary of whether it can pass legal muster.
“I don’t want to be a test case in the courts for these types of things,” said Councilman Keith Hardin.
He prefers more of a carrot-and-stick approach in the form of a three-year tax abatement to developers that could be passed on to homeowners to help nurture the upkeep of their properties.
“The whole point is we debate this and encourage developers to stick with their original plan and not bait-and-switch the city.”
He and fellow Councilman Bruce Armstrong want the city to tighten its zoning regulations, too. Greenwood’s ordinances allow a developer to change his commitments without penalty.“It’s the wrong way to go about what needs to be done,” Armstrong said of the ordinance. “Unfortunately, there are too many loopholes developers are using.”