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Forums » Real Estate Development » Entitlements.

Entitlements. Subscribe to Entitlements.

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Hi,

I have been investing in residential real estate (condo, quadplex, SFR) for sometime and understand that area well.

I am now considering development. One of the key areas that I see is the Entitlement process.

Can you please point me to any good reference material which explains the entitlement process in good detail? Please advice.

regards,
Girish.


Real Estate Investor · Springfield, Missouri


What entitlement are you talking about? Not any entitlement to develop a property that I know of, are you talking about tax credits?


Real Estate Investor · Wheat Ridge, Colorado


In some areas there is an entitlement process. Its one of the first steps to getting permission to develop a chunk of land. One of the companies I used to work for owned a chunk of land near Disneyland in CA and went through this process to get the ability for it to be developed. I think they did eventually get through the process, but it took years.

You might look into the Urban Land Institute, http://www.uli.org/. They have a number of books on various aspects of development and I suspect they cover this topic.

Small_flying-phoenixJon Holdman, Flying Phoenix LLC


Real Estate Investor · Sacramento, California


The entitlement process is where you create your profit in development. The concept is simple, you are taking the land to a higher and better use (and more valuable). If you haven't done it before, don't tackle it on your own. The process can be dramatically different from state to state and city to city. It will almost always take longer and be more expensive that you anticipate. Find yourself a mentor, joint venture partner, consultant, etc. that you trust.



Thanks Folks, for the suggestions.

Rick, I do have a mentor. However I want to learn the details of the entitlement process. However I cannot find any references.


Developer · Fishers, Indiana


Entitlements is essentially getting permission from the municipality to build what you want on a site with regards to use, density, building height, setbacks, traffic impacts and environmental issues. Each municipality has their own ordinance that defines the process to entitle you to build your project and most of them are different.

The quick answer is to locate a site then determine if it is a parcel in a city or county, then contact the Planning & Zoning Department that has jurisdiction and they can guide you through their process. Essentially this is my job. Our acquisitions department locates sites throughout the midwest and east coast and lets me know how many units they desire. Then I contact the Planning & Zoning Department, Building Department, Utility Companies, Highway Department, Board of Health, etc., basically any department that I can think of that would need to review our plan. Some municipalities are more user friendly than others. For instance some P&Z Depts. consider themselves a "one stop shop" and they have a nice neat little packet that explains the entire process to you. Others have poor communication between the different departments and you are own your own to obtain every reivew and approval you need.

My first question is always, what is the current zoning? Then, is multi-family allowed in the current zoning? If the property is zoned properly then great, move on. If not then you will need to follow the rezoning process. Usually a boundary survey and legal description are required, beyond that it depends on the municipalities requirements. Sometimes that's all you need, other times you need a detailed site plan and some elevations of buildings, depending on the size and scope of your project. Detailed plans are being required more and more. The reason is a developer used to be able to turn in a survey and say I would like to build apartments on this site and the city would say okay without knowing what they will look like or how tall they might be. Now days, neighbors and the adjacent public are becoming more outspoken about what gets built around them and the zoning process is the only time they get a chance to voice their opinion. So now developers have to make commitments about what they build, like, how many buildings/units, how much brick or stone, and these committments are then recorded as a requirement.

Even though all cities are different the rezoning process is probably the most consistant. Beyond zoning, it's a crap shoot as to the process and time frame required to obtain entitlements. Some cities can get you through in 6 months and others can take 2 years depending on how many agencies have to get involved.

I'm rambling a bit now and I know you were looking only for reference material which Jon pointed out the Urban Land Institute which is a great resource and the place you should start. After you poke around there a bit feel free to post more questions here. After all that's what this website is for and no better people to ask than those with experience.




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