©2011 Cengage Learning. Chapter 12 Land-use Planning, Subdivisions, Fair Housing, and Other Public...

Chapter 12Land-use Planning,

Subdivisions, Fair Housing, and Other Public Controls

California Real Estate Principles


Chapter 12 1. Describe the main goals of a community

general plan.2. Explain the difference between government use

of police power and eminent domain.3. List the major characteristics of the Subdivision

Map Act and the Subdivided Lands Act4. Describe a common interest development and

discuss the differences between a condominium and a planned unit development.

5. List the major fair housing laws that prohibit discrimination in the selling or renting of real estate.


Government Land Planning & Other Public Controls

Too Stringent? Or Too Lenient?


POLICE POWER

Regulate without compensation

Zoning * Building & Health Codes * Rent Control

Subdivision Regulations * Environment Regulations

PRIVATE DEED RESTRICTIONS (CC&R’s)

PUBLIC LAND-USE CONTROLS

General PlanEvery California city and county must have a Planning

Commission for political, economic social, physical, (PEPS) needs of their community.

The general (or master) plan comprehensive, long range must include provisions for:

Land useCongestion and circulation (traffic and water)Housing at all income levelsConservation of natural resourcesOpen space and future growthNoise problemsSafety from fire, seismic (earthquake) and geological

hazardsPublic utilities


ZoningZoning - to preserve property values


• Size–Minimum area

–Maximum building coverage of lot

–Set-back requirements on sides, front and back

–Parking: Floor area ratio (FAR)-Parking to floor area

• Example of typical use:–A – Agricultural

–I – Industrial

–C – Commercial

–R – Residential

Development Tools


EMINENT DOMAIN

Take title to private property

Must pay “just” compensation

Highways * Parks * Schools

CONDEMNATION

A court proceeding to “take” private property.

Must be for the “public” good and public use.

PLANNING TERMS

Planning Commission – Appointed citizens advising on land use.

Planning Department – Staff who lend technical assistance on land use matters.

Zone – Area defined by a boundary line on a map for land-use regulations.

Rezoning – Changing land-use regulations on property from one zone to another zone.

Variance – Deviation from the zoning regulation on a particular parcel.

Conditional use permit – Requirement by government for approval of a permit or division of property.


PLANNING TERMSDevelopment Plans – Detail plans of

proposed use with plot plan, architectural renderings, acreage, building area, units and parking.

Standard Subdivision – A division of property into 5 or more parcels.

Lot Split – A division into 2, 3, or 4 parcels.

Architectural Review – Special approval based on architectural compatibility to an area.

Appeal – The right to request a review of a negative planning commission decision.


Zoning ChangesNon-conforming – Allows for current property use to be

grandfathered in when subsequent zoning changes differ from existing property usage.

Variance- ONE individual owner parcel changeConditional use – Existing use may continue, but

change in ownership will not allow new owner to continue with existing use. New owner must comply to new zoning requirements to conform to usage.

Spot zoning – Small number of owners parcel change, as when end property on a street abuts commercial highway.

Down zoning – When less number of units are allowed on a parcel than is currently in use, such as going from R-3 to R-2 usage.

Re-zoning- Change in exiting zoning. Requires notice to property owner, and often public hearings for approval.


Building & Health CodesMinimum standards for

design construction use occupancy maintenance

Building permits obtained from local Building Department

Sanitation problems reported to local

Health Department


Types of Sub-Divisions

Standard Subdivision – 5 or more lots or parcels for:-Planned Unit Development (PUD)-Condominium (Condo)

C.C.& R.’s

-Community Apartment -Land Projects-Stock Cooperative-Mobile home/Manufactured Housing Park

Time Share12 or more shares for 5 or more years

Mineral, Gas and Oil (M.O.G.)160 or more acres


Subdivision Map Act Residential Subdivisions within

city limits Enforced by local government Includes

Community apartments Condominiums

(residential, commercial, industrial)

Parcel Maps 2 or more parcels Physical aspects: streets,

APN’s, sewer, sidewalks Approvals from California

Coastal Commission and Department of Highways

24 months

Subdivided Lands Act Sale of property to California

residents (in state or out of state) Enforced by Real Estate

Commissioner Defines subdivision (5 or more lots Includes

Community apartments Condominiums Long-term leases (mobile

home/trailer park, timeshare, agricultural)

Preliminary Public Report Reservations taken, not sold All deposits refundable

Final Public Report Valid for 5 years Receipt must be signed by buyers Subdivider keeps 3 years


COMMON INTEREST DEVELOPMENT (CID)

Condominium

Planned Unit Development (PUD)

Stock Co-Operative

Community Apartment


Condominium Subdivision Fee simple ownership to the living unit in the air space of a portion

of property and air space of the unit. Undivided interest in land and common areas Separate property tax bill, deed, deed of trust C.C. & R.’s Operation controlled by elected governing board Undivided Interest -- Land is not subdivided; instead, developer

sells five 1/5 shares (undivided interest). Each 1/5 undivided interest has the right to use the

entire area.


Condominium

98

12345 6

7

10

CommonOpenSpace

P.U.D.

High RiseBuilding

(Small Lot)

Low RiseBuildings

(More Land)


Condo vs. PUD

A PUD is the same as a condo, except the lot is owned fee simple.


DefinitionsCommunity Apartment Project

Owner has individual interest in the landOwner has exclusive right to occupy their apartment

Stock Cooperative Similar to apartments with exclusive occupancy

Time Share Occupancy for a specified date and time Buyer has 7 day rescission rights Either estate ownership or use occupancy

Land Projects Sparsely populated areas: 50 + lots 14 day rescission period

HOUSING & CONSTRUCTION LAWS

State housing laws – Minimum housing standards for the entire state.

Local building codes – Must comply with state uniform code or show a study why not.

Contractor’s license law – Required for everyone engaged in real estate construction.

Environmental impact regulations – A review before a building permit is issued to show:Negative Impact Report (NIR) = No concernEnvironmental Impact Report (EIR) = Concern


THE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT (FEHA)

Prohibits Housing Discrimination Based on: Race Religion National Ancestry Sex Sexual Orientation Martial Status Physical Handicap


State Fair Housing Laws Unruh Civil Rights Act

Anti-discrimination in business (including real estate)

CA Fair Housing Act (Rumford Act) Created Fair Employment Practices Commission Forbid discrimination by real estate owners Housing Financial Discrimination Act (Holden Act) Prohibits redlining by lending institutions

Equal credit opportunity act Real Estate Commissioner’s Regulations

Has the force and effect as law Disciplinary action results in suspension


Federal Anti-Discrimination Civil Rights Act of 1968 Jones vs. Mayer rest on 13th amendment

(Jones v. Mayer validated the Civil Rights Act of 1866)

Violations filed with HUD Enforced by HUD & U.W. Attorney General


Definitions:•Blockbusting•Redlining•Steering

Review Quiz Chapter 121. Rent controls, building moratoriums, and

coastal controls are examples of government use of:

(a) police power(b) eminent domain(c) zoning(d) subdivision regulation


Review Quiz Chapter 122. The subdivision law administered by the California

Real Estate Commissioner, who requires the issuance of a public report:

(a) Subdivision Map Act

(b) Subdivided Lands Act

(c) Subdivision Report Act

(d) Subdivided Interstate Act


Review Quiz Chapter 12

3. The type of development where an owner obtains an individual deed to their living unit and has an undivided interest in all the land and common area is called:

(a) planned unit development

(b) community apartment

(c) stock cooperative

(d) condominium


Review Quiz Chapter 124. If a person purchases the right to occupy a unit for a

certain designated period each year, it is called:

(a) undivided ownership

(b) time share ownership

(c) cooperative ownership

(d) estate for years ownership



5. A purchaser of a lot in a rural land project can cancel the purchase contract and receive a full refund in how many days?

(a) 7 days

(b) 14 days

(c) 30 days

(d) 60 days


Review Quiz Chapter 126. The California law that makes it unlawful for

businesses to illegally discriminate is called:(a) Fair Housing Act(b) Rumford Act(c) Unruh Act(d) Housing financial Discrimination (Holden) Act



7. Requires a certain number of units to be set aside for people of low and moderate income:

(a) Holden Act

(b) Fair Housing Act

(c) comprehensive zoning

(d) inclusionary zoning


Review Quiz Chapter 128. If a city planning commission turns down a variance

request, the next level of appeal is to the:

(a) city engineer

(b) city assessor

(c) city council

(d) courts



9. Discrimination due to race, color, or creed in housing under both federal and state legislation is:

(a) illegal

(b) unlawful

(c) unenforceable

(d) all of the above


Review Quiz Chapter 1210.A purchaser of a time share and an undivided

interest in a recreational development in California can cancel the sale and receive a full refund within:

(a) 24 hours

(b) 48 hours

(c) 72 hours

(d) 7 days


Answers to Review Quiz Chapter 121. A 6. C

2. B 7. D

3. D 8. C

4. B 9. D

5. B 10. C


©2011 Cengage Learning. Chapter 12 Land-use Planning, Subdivisions, Fair Housing, and Other Public...

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Transcript of ©2011 Cengage Learning. Chapter 12 Land-use Planning, Subdivisions, Fair Housing, and Other Public...