Principles of California Real Estate

1. Principles of California Real Estate Lesson 5: Public Restrictions on Land

2. Introduction Private property ownership is affected by public restrictions on land (land use controls):

3. Introduction Private property ownership is affected by public restrictions on land (land use controls): • zoning ordinances • building codes • subdivision regulations • environmental laws

4. Introduction Private property ownership is affected by public restrictions on land (land use controls): • zoning ordinances • building codes • subdivision regulations • environmental laws The government’s powers of eminent domain and taxation also affect property.

5. Land Use ControlsPolice power Police power: State’s constitutional power to adopt laws necessary for protection of public’s health, safety, morals, and general welfare.

6. Land Use ControlsPolice power Police power: State’s constitutional power to adopt laws necessary for protection of public’s health, safety, morals, and general welfare. • Allows government to place restrictions on owner’s use of private property.

7. Land Use ControlsPolice power Police power: State’s constitutional power to adopt laws necessary for protection of public’s health, safety, morals, and general welfare. • Allows government to place restrictions on owner’s use of private property. • State delegates its police power to local governments.

8. Land Use ControlsConstitutional limitations To be constitutional, land use regulation must: • have a reasonable relationship to public health, safety, morals, general welfare

9. Land Use ControlsConstitutional limitations To be constitutional, land use regulation must: • have a reasonable relationship to public health, safety, morals, general welfare • not discriminate between similarly situated property owners

10. Land Use ControlsConstitutional limitations To be constitutional, land use regulation must: • have a reasonable relationship to public health, safety, morals, general welfare • not discriminate between similarly situated property owners • not reduce property value so much that regulation amounts to confiscation

11. Land Use ControlsConstitutional limitations To be constitutional, land use regulation must: • have a reasonable relationship to public health, safety, morals, general welfare • not discriminate between similarly situated property owners • not reduce property value so much that regulation amounts to confiscation • prevent harm to the public that prohibited use of property would cause

12. Land Use ControlsComprehensive planning City or county must prepare general plan for development (also called comprehensive plan or master plan).

13. Land Use ControlsComprehensive planning City or county must prepare general plan for development (also called comprehensive plan or master plan). The plan should: • set long-range development goals

14. Land Use ControlsComprehensive planning City or county must prepare general plan for development (also called comprehensive plan or master plan). The plan should: • set long-range development goals • ensure land is developed in orderly fashion

15. Land Use ControlsComprehensive planning City or county must prepare general plan for development (also called comprehensive plan or master plan). The plan should: • set long-range development goals • ensure land is developed in orderly fashion • address population density, building intensity, housing, traffic patterns, transportation systems, noise control, etc.

16. Land Use ControlsComprehensive planning General plan is implemented by city and county governments through zoning ordinances and other land use regulations.

17. Land Use ControlsTypes of land use controls Different types of land use control laws: • zoning • building codes • subdivision regulations • environmental laws

18. Land Use ControlsZoning Zoning ordinance: Divides community into land use zones with only certain types of uses allowed in each zone.

19. Land Use ControlsZoning Zoning ordinance: Divides community into land use zones with only certain types of uses allowed in each zone. Areas zoned for incompatible uses may be separated by undeveloped areas (buffers).

20. Land Use ControlsZoning Zoning ordinances cannot: • be applied retroactively

21. Land Use ControlsZoning Zoning ordinances cannot: • be applied retroactively • discriminate against particular parcel of property

22. Land Use ControlsZoning Zoning ordinances cannot: • be applied retroactively • discriminate against particular parcel of property • create patently unfair situation

23. Land Use ControlsZoning Zoning ordinances cannot: • be applied retroactively • discriminate against particular parcel of property • create patently unfair situation  Zoning decisions typically can be appealed to city or county government, and then appealed to court of law.

24. ZoningUse categories Early zoning laws usually had only a few broad land use categories: residential, commercial, industrial, and agricultural.

25. ZoningUse categories Early zoning laws usually had only a few broad land use categories: residential, commercial, industrial, and agricultural. Modern zoning laws typically have numerous subcategories.

26. ZoningUse categories Examples of possible residential zones: • R 1: allows detached single-family houses • R 2: also permits row houses and duplexes • R 3: also permits apartments and condominiums • R 4: permits any type of housing, including mobile homes

27. ZoningUse categories Examples of possible residential zones: • R 1: allows detached single-family houses • R 2: also permits row houses and duplexes • R 3: also permits apartments and condominiums • R 4: permits any type of housing, including mobile homes Agricultural zones are typically designated with letter “A,” and industrial zones are typically designated with letter “M.”

28. ZoningLand use limits Zoning ordinances may: • set minimum lot sizes

29. ZoningLand use limits Zoning ordinances may: • set minimum lot sizes • limit building height

30. ZoningLand use limits Zoning ordinances may: • set minimum lot sizes • limit building height • require minimum distances from property lines for buildings (setback and sideyard rules)

31. ZoningLand use limits Zoning ordinances may: • set minimum lot sizes • limit building height • require minimum distances from property lines for buildings (setback and sideyard rules) • limit how much of lot can be covered by a building

32. ZoningZoning exceptions Zoning ordinances must be applied in same manner to all similarly situated property owners.

33. ZoningZoning exceptions Zoning ordinances must be applied in same manner to all similarly situated property owners. Special provisions for exceptions to zoning: • nonconforming uses • variances • conditional uses

34. Zoning ExceptionsNonconforming uses Nonconforming use: Existing use that becomes a violation when new zoning is imposed.

35. Zoning ExceptionsNonconforming uses Nonconforming use: Existing use that becomes a violation when new zoning is imposed. • May be because of buildings, lot size, or use.

36. Zoning ExceptionsNonconforming uses Nonconforming use: Existing use that becomes a violation when new zoning is imposed. • May be because of buildings, lot size, or use. Example: Grocery store opens in developing area with no zoning. Town council later zones area for residential use.

37. Zoning ExceptionsNonconforming uses To require nonconforming uses to be immediately brought into compliance with new zoning laws would: • cause too much financial hardship for owners

38. Zoning ExceptionsNonconforming uses To require nonconforming uses to be immediately brought into compliance with new zoning laws would: • cause too much financial hardship for owners • discourage land development (most property owners expect to be able to continue their present use)

39. Zoning ExceptionsNonconforming uses • Nonconforming uses are usually allowed to continue, but with restrictions. They cannot be: • expanded • rebuilt after destruction • resumed after abandonment

40. Zoning ExceptionsNonconforming uses • Nonconforming uses are usually allowed to continue, but with restrictions. They cannot be: • expanded • rebuilt after destruction • resumed after abandonment • The property can be sold, but the new owner is subject to the same restrictions.

41. Zoning ExceptionsNonconforming uses • Nonconforming uses are usually allowed to continue, but with restrictions. They cannot be: • expanded • rebuilt after destruction • resumed after abandonment • The property can be sold, but the new owner is subject to the same restrictions. • Zoning laws may establish reasonable time limits to phase out nonconforming uses.

42. Zoning ExceptionsVariances Variance: Special authorization to build structure or use property in way that is generally prohibited (often referred to as an exception).

43. Zoning ExceptionsVariances Variance: Special authorization to build structure or use property in way that is generally prohibited (often referred to as an exception). • Used where enforcement of zoning would result in substantial harm to owner without providing any real public benefit. 

44. Zoning ExceptionsVariances • Owner can apply to the local zoning authority for a variance.

45. Zoning ExceptionsVariances • Owner can apply to the local zoning authority for a variance. • Must show severe practical difficulties or undue hardship.

46. Zoning ExceptionsVariances • Owner can apply to the local zoning authority for a variance. • Must show severe practical difficulties or undue hardship. • Variance will not be granted just to make property more profitable.

47. Zoning ExceptionsVariances • Owner can apply to the local zoning authority for a variance. • Must show severe practical difficulties or undue hardship. • Variance will not be granted just to make property more profitable. • Variance usually authorizes only minor deviation.

48. Zoning ExceptionsVariances • Owner can apply to the local zoning authority for a variance. • Must show severe practical difficulties or undue hardship. • Variance will not be granted just to make property more profitable. • Variance usually authorizes only minor deviation. • California prohibits use variances.

49. Zoning ExceptionsConditional uses Conditional use: Zoning authority may issue special permits for certain uses inconsistent with a neighborhood’s overall zoning, but necessary or beneficial to community.

50. Zoning ExceptionsConditional uses Conditional use: Zoning authority may issue special permits for certain uses inconsistent with a neighborhood’s overall zoning, but necessary or beneficial to community. Examples: schools, hospitals, churches, and cemeteries.