New Albany committee advances proposed moratorium on new apartments

NEW ALBANY, Ind. (WDRB) -- It could be a full year before any new apartments are built in New Albany, Indiana.

Elected leaders in New Albany believe the city should shift its focus on a different development in the coming months.

The city in southern Indiana partnered with the Urban Studies Institute at the University of Louisville for a comprehensive housing study. The study recommended New Albany focus on increasing availability of owner-occupied single-family homes, along with disincentivizing apartments and short-term rentals.

Mayor Jeff Gahan recommended the city council explored establishing a moratorium on the construction of apartments and halting the issuance of permits for short-term rentals.

Gahan proposed the ordinance to the council. The moratorium pause on apartments and short-term rentals would be in effect for about a year.

On Monday, the Development and Annexation Committee met to discuss the ordinance proposed by Gahan.

Gahan said New Albany has little wiggle room for new construction, given much of its 15-square miles is developed. That's why he wants the city to make informed decisions for its future.

"We have to be wise in the way we allocate property and what we do with it," Gahan told WDRB News last week. "We know we have enough apartments to satisfy the demand and then maybe a little more."

The development and annexation committee discussed the findings of the study and agreed to pass the ordinance onto the planning and zoning commission.

New Albany council president Adam Dickey said he's proud of New Albany's growth, but the council wants to grow the city in the right way.

"This is just the first step to allow us to take a pause, have a second to do some due diligence to review our code, to review trends in the housing market, and to come up with some good common sense reforms that may help us incentivize our housing in productive ways for our city," Dickey said.

The full council needs to approve the moratorium. It could be brought up next month.

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