§ 151.18 RENTAL DENSITY.
   (A)   In R-A, R-1, R-1S and R-2 zoning districts, no more than 10% of the single-family lots on any block shall be eligible to obtain a rental license, unless a temporary license is granted by the City Council as provided herein. Table 1 indicates how many single-family lots per block are able to be licensed as a rental property based on the number of lots that exist in a block.
Table 1
Lots/Block
Rental Units Allowed
Table 1
Lots/Block
Rental Units Allowed
1-14
1
15-24
2
25-34
3
35-44
4
45-54
5
55-64
6
65-74
7
75-84
8
85-94
9
 
   (B)   The following guidelines shall apply to determine eligible blocks and lots.
      (1)   For the purposes of this subchapter, a BLOCK shall be defined as an area of land enclosed within the perimeter of streets, watercourses, public parks, municipally owned lots and city boundaries.
      (2)   This subchapter shall apply to legally conforming lots of record and legally nonconforming lots of record. For the purposes of this subchapter, lots of record may also be referred to as PROPERTIES, PROPERTY or LOTS.
      (3)   If a block contains more than one type of zoning district, only R-A, R-1, R-1S and R-2 zoning district lots shall be included in the calculation of the total number of lots per block.
      (4)   Legal nonconforming rental property shall be allowed to continue as long as the legal nonconforming use complies with §§ 151.13 and 156.052 of the Zoning Code.
      (5)   Commercial or industrial uses located in an R-A, R-1, R-1S and R-2 zoning districts shall not be included in the calculation of the total number of lots per block.
      (6)   Properties that are exempt pursuant to division (A) of this section shall not be included in the calculation of the total number of lots per block.
   (C)   If the number of rental properties meets or exceeds the permitted number of rental properties per defined block on the effective date of this section, no additional rental licenses shall be approved for the block, unless a temporary license is granted by the City Council as provided herein. Existing rental licenses may be renewed; however, should a rental license not be renewed, or if the rental license is revoked or lapses, the rental license shall not be reinstated unless it is in conformance with this section and other applicable sections of the city code.
   (D)   Exceptions.
      (1)   Parcels zoned CBD, R-3, R-4, OR-1, B-1, B-2, B-3, M-1, M-2, I-1, TUD, P-1.
      (2)   Single-family homes or duplexes in which the owner resides within a portion of the building are exempt unless an unrelated person resides within the owner’s dwelling unit. If the building is a duplex, only that portion of the building in which the owner resides alone or with related persons is exempt. The other portion of the duplex requires a rental license. Should a duplex transfer ownership, it is eligible to receive a rental license for the dwelling unit which was formally owner- occupied.
      (3)   Rental licenses for state licensed residences shall be exempt from this subdivision. If the property is no longer licensed by the State of Minnesota, a new rental license application shall be submitted and reviewed for compliance with this division and other applicable city and Building Code sections.
   (E)   Properties eligible to receive a rental license in R-A, R-1, R-1S, and R-2 zoning districts will be determined as follows:
      (1)   Any property zoned R-A, R-1, R-1S, RS, and R-2 is eligible to receive a rental license until the number of single-family and two-family dwellings issued rental licenses exceeds 10% within the block it is located in.
      (2)   This division shall apply to legally conforming properties of record and legally nonconforming properties of record, as defined in Ch. 156, in existence at that time of the effective date of this section or approved by new subdivision of unplatted and undeveloped property after the effective date of this section.
   (F)   For the purposes of this division, the following shall apply:
      (1)   Properties licensed for rental purposes on the effective date of this section shall be included in the calculation of the number of permitted rental properties.
      (2)   Existing rental licenses may be renewed or transferred per §§ 151.07, 151.08 and 151.09.
(Ord. 80, 4th Series, passed 9-6-2016)