When people can’t sell their houses, and live near a university, they naturally think of renting, said Tim Dempsey, East Lansing’s community and economic development administrator.

“If we are able to come up with some workable incentives … I think people on their own may not seek to change the status of their property,” Councilmember Roger Peters said.

The area discussed is bordered by Burcham Drive, Hagadorn Road, Gunson Street and part of Beech Street.

The purpose is to continue to keep a balance between owner-occupied and rental property, Dempsey said.

An 18-month moratorium, which restricts new rental licenses entirely, was placed on the area in November 2007, with border changes in March.

The reason for the moratorium was to stabilize the area during construction for the Avondale Square project and to allow city staff to look at ways to encourage people to stay and invest in that particular area, said Annette Irwin, East Lansing’s operations administrator for Code Enforcement and Neighborhood Conservation.

“I don’t think any of us really necessarily want it to run its course,” Peters said. “I think our goal is to come up with something as soon as possible.”

Medium-density residential units, along with single-family and two-family residential units, are covered by the moratorium, Dempsey said.

The typical tool to limit rental licenses is an overlay, which is created through petitions of homeowners.

“Essentially what that does is create a zoning district that prohibits certain types of rental properties,” Dempsey said. There are currently 11 overlays in East Lansing, he said.

If the neighborhoods are educated about it, a rental license overlay is another option for this area, Dempsey said.

In addition, an ordinance was passed in 1997 that limits rental licenses for most single-family homes to two unrelated people, Irwin said.

“(The ordinance) applies to the entire city, but rental restriction overlays are specific to certain neighborhoods,” Dempsey said.