Cal. Civ. Code § 36-1-20-3.6
Adoption or enforcement of an ordinance, resolution, regulation, policy, or rule concerning use of property as rental property
Operative Text
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.
Indiana Code § 36-1-20-3.6 limits the authority of local governmental units—such as cities, towns, and counties—to restrict or prohibit the use of privately owned residential property as rental property. Local rules that effectively cap or ban rental use are generally not permitted, though local governments retain the ability to enforce health and safety codes, building and fire codes, reasonable occupancy standards, and registration or inspection requirements that do not function as a rental cap. Pre-existing local rules adopted before January 1, 2026, receive a transitional exemption until January 1, 2028, and short-term rental ordinances adopted before January 1, 2018, in compliance with IC 36-1-24 are permanently exempt from this provision.
Plain English — not legal advice.
Under Ind. Code § 36-1-20-3.6, property owners operating or considering rental properties in Indiana have a state-level protection against local ordinances that would prohibit or effectively restrict rental use of their privately owned residential property. Compliant operators generally continue to meet applicable health and safety codes, building and fire codes, and any registration or inspection requirements, since those remain enforceable by local units. Owners whose properties are subject to local rules adopted before January 1, 2026, should be aware that those rules may remain in effect through January 1, 2028, after which local units must align their regulations with this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Ind. Code § 36-1-20-3.6 is a provision that shapes what local governments in Indiana can and cannot regulate with respect to rental housing availability; it does not directly create or remove tenant rights, but it does affect the landscape of rental housing supply in a given community. Tenants who believe a local ordinance is being applied in a way that conflicts with this section—for example, one that effectively restricts rental availability beyond what health, safety, or building codes would justify—may wish to consult a tenant-rights organization or legal aid provider familiar with Indiana housing law. Because transitional exemptions under this section run through January 1, 2028, for certain pre-existing local rules, the applicability of this provision can vary depending on when and where a local ordinance was adopted.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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