My hometown's newspaper just published an opinion piece about the disastrous effects, ecologically and financially, that lawn care causes. Not totally surprising but it's important to note that this is a retirement community in the bible belt!
My town has been doing the same and there's even a program where they will come rip out your lawn and replace it with some kind of wood chip stuff. The town's main water supply is a lake just downhill from our little mountain so they take it pretty seriously. I hate lawn care so I've considered it, but haven't actually taken action on it yet. But I just might. I hate hate hate mowing.
I think in that particular towns case, they don't want people using any kind of sprays on the lawn. Native is always the best option when given a choice.
Grass needs lots of water (resource that's scarce in places), mowing (gas lawnmowers are big polluters), many companies use fertilizers and herbicides (fertilizers run off into the water system and herbicides are very harmful). But mostly grass is a monoculture and doesn't support our native bees, butterflies, or birds which we rely on to pollinate our food crops. Grass is useful in areas with heavy foot traffic, but we grow way more of it than we really need.
I had a place in my backyard where grass wouldn't grow because it ponded too much. Have since covered with mulch to prevent any more erosion and planted blueberries and creeping phlox. Much prettier now!