Land Use Controls and Zoning Quiz

Government Controls and Real Estate Markets

• Land use regulation is significant in modern society, with various justifications and impacts.
• Limitations on ownership exist in various forms through government controls and private restrictions.
• Government influences real estate through eminent domain, police power, and taxation, while private individuals impose deeds restrictions and homeowner's associations (HOAs).
• Ownership limitations include complete removal, restrictions on use, divisions of use/possession, and the share in value.
• Government limitations include eminent domain, police power, and taxations.
• Private limitations include liens, deed restrictions, easements and leases.

Market Distortions in Real Estate

• Real estate markets experience distortions due to unique properties
• Spillover effects from nearby land usage impact value and characteristics.
• Uncertain quality and condition of existing structures influence market decisions.
• Instability in land use around residential neighborhoods creates complications.
• Locational uniqueness (absolute monopoly) is a significant feature.

Market Failures in Real Estate

• Monopoly exists in real estate, and utilities are often viewed as natural monopolies.
• "Holdouts" in land assembly for public uses (e.g., roads) can hinder progress.
• Incomplete information about construction quality or natural (e.g., hurricanes, earthquakes) and other environmental risks affects market reliability.
• Uncertainty about structural safety (e.g., wind tolerance, fire resistance) creates market problems.
• Incomplete information on the physical condition of buildings impacts market value and price.

Traditional Land Use Controls: Building Codes

• Building codes, older than zoning, focus on safety elements.
• These include fire safety, materials, alarms, and electrical/gas systems.
• Codes also address sanitation, plumbing, water, HVAC, and injury prevention/structural strength.
• Building codes constantly evolve, influenced by events like hurricanes (e.g., Hurricane Andrew) and technological advancements (e.g., smoke detectors).

Traditional Land Use Controls: Zoning

• Zoning involves classifying land use (e.g., residential, commercial, industrial.)
• Zoning maps delineate districts with specific regulations.
• Setbacks (e.g., front, back, side) limit building placement relative to property lines.
• Bulk or density limits (minimum lot sizes, height restrictions) control property development.
• Special use districts exist for specific purposes (e.g., service stations, hospitals, churches, cemeteries).

Traditional Land Use Controls: Subdivision Regulations

• Subdivision regulations set standards for streets, sewers and water systems for new development.
• Adequate water supply for fire safety is crucial.
• Proper drainage is important for runoff and retention.
• Open spaces are maintained within subdivision designs.
• Lot layouts consider utilities and easements.

Traditional Land Use Controls: Planning and Zoning Administration

• A zoning commission, appointed by elected officials, oversees ordinance implementation.
• This commission advises elected officials and considers changes to the comprehensive plan.
• Requested changes must maintain compatibility with the overall plan and not negatively impact other surrounding land uses.

Traditional Land Use Controls: Board of Adjustment

• The board of adjustment, appointed by elected officials, typically reviews variance requests in zoning ordinances.
• Its decisions are binding, and only appeal is possible via the court system.

Traditional Land Use Controls: Site Plan Review Board

• The site plan review board, a subdivision of the planning and zoning commission, reviews subdivisions and building site plans.
• This review incorporates input from neighbors and relevant public officials (e.g., fire, police, utilities).

Zoning Issues and Concepts

• The legality of zoning ordinances is established by the Supreme Court, as in the case of Village of Euclid v. Ambler Realty, with a notable 1926 ruling.
• Nonconforming uses: Prior inconsistent usage might be permitted but cannot be substantially altered. They might be subject to an amortization period.
• Variances – If there is a hardship for a property owner, a variance may be granted, though it must not impact the neighbourhood and must not be an alternative.

Zoning Issues and Concepts (Continued)

• Variances are granted due to hardship particular to the property.

• The property must not reasonably permit achieving compliance through an ordinary zoning alternative.

• The variance should not adversely affect neighboring properties or the neighbourhood.

• Examples include waivers of setback requirements where justified on a case-by-case basis.

• Exclusionary zoning is challenged as unreasonable lot sizes or inadequate plans for low-moderate income housing.

Do Land Use Controls Solve Market Failure?

• Zoning's effect on housing costs, efficient land use, and access to necessary services is debated.
• Whether low zoning density contributes to urban sprawl is a point of discussion.

The "Revolution" in Land Use Controls

• Significant historical development in land use planning preceded 1970, with little formalized planning.
• Notable events like the Environmental Movement of the late 1960s contributed significantly to the change.

Challenges to Comprehensive Planning

• Changing understandings of best practices (e.g., cul-de-sacs vs. grid streets)
• The lack of large quantities of data over a long history
• Inadequate theoretical foundations
• Inability to accurately predict the future

Is Comprehensive Planning the Answer?

• Comprehensive planning factors include future population growth, needs for water and waste disposal, public services (utilities, streets, schools, parks), land use projections, and a comprehensive land use map.

Traditional Planning vs. New Urban Planning

• Traditional planning often prioritizes separated land uses and automobiles with cul-de-sac hierarchies.
• New urban planning emphasizes mixed-uses and prioritizes public transportation, sidewalks, and density.

Newer Approaches to Land Use Controls: Performance Standards

• Land use controls may consider performance standards (e.g., storm runoff limits, noise emission and traffic impact and tree removal restrictions).

More New Land Use Controls

• Impact fees are a controversial tool, favored by economists for revenue and by communities to pay for anticipated infrastructure upgrades.
• Growth restrictions, such as temporary moratoriums, have seen mixed success, with courts often ruling against limits on units developed.

Another Way? Form-Based Zoning

• Form-based zoning regulates land use by characteristics (e.g., development density, street character, parking).
• This approach has diagrams showcasing these characteristics and aims at predictable layouts.

How Form-Based Zoning Works

• Areas are categorized by development characteristics (e.g., natural, suburban.)
• Multiple uses are allowed within each area.
• Users (households and firms) select areas based on their preferences.

Form-Based Zoning: Live Examples

• Several cities use form-based zoning, including Denver, Colorado, and Miami, Florida; there are supporting websites with information.

Spaceship Earth?

• The "spaceship earth" concept questions whether current land use practices adequately consider environmental sustainability.

Sample of Environmental Controls Since the Late 1960s

• Key environmental legislation, such as the Clean Air Act, Clean Water Act, CERCLA, OSHA, and Endangered Species Acts significantly impacts how land use decisions are made.

Some Hazardous Materials

• Environmental laws also address hazardous materials, such as asbestos, fiberglass, PCBs, leaking underground storage tanks (LUSTs), radon, and PFAS.

Limits to Regulation

• The Supreme Court has established limits on government regulation in land use, balancing public welfare and property rights.
• The Pennsylvania Coal Company v. Mahon case is key case demonstrating the necessity to balance public welfare with property rights and considerations of what constitutes an infringement on property rights.

Power of Eminent Domain

• Eminent domain allows the government to acquire private land for public use, even without the owner's consent.
• The process involves just compensation, due process, and careful consideration for public and private interests involved.

Eminent Domain Controversy

• The definition of "public use" has expanded to include general "public purpose"
• Controversies like the Kelo v. New London 2005 Supreme Court case highlight challenges/possible misuses, forcing states to intervene.

A Larger Perspective on "Kelo"

• Kelo emphasized the debate about community needs, economic development and public use, considering the public versus private interests in a local/regional context.
• Kelo is considered to have shifted authority to states to regulate use of eminent domain.

The Effect of Property Taxes on Real Estate

• Property taxes can reduce value if excessively high, making areas less attractive and lower property values.
• Property values may increase with taxes providing for infrastructure required for proper use/development but an increase in taxation may not result in proportionate return.

Property Taxes

• Property taxes are the largest source of revenue for many local governments.
• There are numerous taxing authorities (cities, county governments, school districts.)

Property Exempt from Taxes

• Certain types of properties benefit from tax exemptions (e.g., state properties, religious institutions, educational institutions, and certain homeowner circumstances).

Determination of Tax Rate

• Tax rate calculation involves dividing the total budget of the taxing authority by the total assessed value, excluding the total value of exempted property.

Computing Tax Liability

• Calculations for property taxes demonstrate how they are determined and levied on various properties.

Special Assessments

• Special assessments are taxes levied for specific improvements, such as streets and sewerage for instance, and calculated by front footage.

Special Assessments and Community Development Districts (CDDs)

• Private CDDs, common in large subdivisions, collect taxes for infrastructure and services.

An Example CDD Community in Florida: The Villages

• A notable example of a Florida CDD is the Villages, a retirement community.

Issues with Property Tax

• Property tax is considered regressive when only examining the value and not the value provided for.
• Tax structures, and protection laws vary across jurisdictions, and can be problematic across different types of communities and properties.

Limits on Ownership

• Government and private limitations on use or possession, and shared values (e.g., deed restrictions.)

Summing Up

• Many factors are considered for land use regulations, and impacts from legislation and rulings have far-reaching implications (e.g., Kelo implications.)
• Public and private rights for land use must be balanced. Property taxation is a common, albeit complex approach.

Test your knowledge on land use controls, impact fees, and zoning regulations with this quiz. Explore key concepts like form-based zoning and the Kelo v. City of New London case. Assess your understanding of property taxes and their implications in urban planning.