{"id":164453,"date":"2024-01-10T18:23:45","date_gmt":"2024-01-11T01:23:45","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=164453"},"modified":"2024-01-19T07:49:30","modified_gmt":"2024-01-19T14:49:30","slug":"development-zoning-fundamentals","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/development-zoning-fundamentals","title":{"rendered":"Do You Know the Fundamentals of Zoning Rules? Here&#8217;s What You Need to Know"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC5939359813\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">Embarking on a ground-up&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rookie-319\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">development<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;project may seem like a monumental task, but the opportunity to build something entirely new makes it one of the most exhilarating ventures in real estate. But, at the heart of any successful development analysis lies a thorough understanding of zoning.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This guide will dissect the key facets, from general zoning classifications to intricate parameters such as height restrictions, setbacks, unit density, and the critical interplay of community incentives and neighborhood ordinances.<\/span><\/p>\n\n\n\n\n\n\n  <div class=\"lg:block\" x-data=\"{ ad_block_block_659f42cc0f02d: popAds(1) }\">\n      <template x-for=\"ad in ad_block_block_659f42cc0f02d\">\n        <a\n          :href=\"ad.linkURL\"\n          class=\"no-underline text-black\"\n          x-on:click=\"adClicked('https:\/\/www.biggerpockets.com\/blog\/development-zoning-fundamentals', ad.sponsor, ad.title, ad.id, 'blockAdClicked', 'blockAd', '')\"\n          target=\"_blank\">\n          <div\n            class=\"py-4 border-b flex flex-col flex-nowrap text-sm border-t px-0 rounded-none\"\n            x-init=\"\n              analytics.track('blockAdLoaded', {\n                referrer: 'https:\/\/www.biggerpockets.com\/blog\/development-zoning-fundamentals',\n                sponsor: ad.sponsor,\n                ad_title: ad.title,\n                ad_page_location: ''\n              })\n            \"\n            x-intersect:enter.once=\"adViewed('https:\/\/www.biggerpockets.com\/blog\/development-zoning-fundamentals', ad.sponsor, ad.title, ad.id, 'blockAdViewed', 'blockAd', '')\">\n            <div><span class=\"text-xs text-slate-light block bg-slate-50 p-1 inline-block rounded-md\">Sponsored<\/span><\/div>\n            <div class=\"flex items-center text-sm space-x-4\">\n                <img :src=\"ad.imageURL\" :alt=\"ad.imageAlt\" class=\"h-10 w-10 object-cover rounded-full\">\n\n                <div clas=\"text-sm\">\n                    <span class=\"font-bold block\" x-text=\"ad.sponsor\"><\/span>\n                    <span class=\"text-slate\/80\" x-text=\"ad.description\"><\/span>\n                <\/div>\n            <\/div>\n\n            <div>\n                <span class=\"font-bold\" x-text=\"ad.title\"><\/span>\n                <p class=\"mt-2 text-slate\/80\" x-text=\"ad.body\"><\/p>\n                <span class=\"mt-2 text-themeBlue block mt-2 underline\" x-text=\"ad.linkTitle\"><\/span>\n            <\/div>\n          <\/div>\n        <\/a>\n      <\/template>\n  <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">General Zoning: Decoding Designations<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Zoning designations are slightly different in each city, but they share some common ground. In the code, like R3, the R means residential use\u2014usually no offices or retail. The number 3 signals more density and height are allowed compared to, say, R2. Similarly, C means it&#8217;s for commercial, and M is for manufacturing.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">These simple designations help us understand the basic rules of land use in any city.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Zoning Parameters<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here\u2019s a look at some specific zoning parameters.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Height restrictions and FAR<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">In most cities, there are designated areas for single-family homes (SFH), typically zoned as R1 or R2, where only single- or two-story structures are permitted.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Multifamily<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;buildings and taller structures are usually allowed in areas zoned as R3 or higher. For instance, in densely populated cities like New York, residential zones can go up to R10.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Some zoning allows for unlimited stories, but in these cases, your building&#8217;s height is constrained by the floor area ratio (FAR). FAR sets the limit on the total gross building area permitted. For example, if the zoning permits a 10,000-square-foot (sf) building based on the FAR and each floor covers about 2,000 sf, you&#8217;re restricted to constructing around five stories without surpassing the FAR limit.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Setbacks<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Zoning regulations use building setbacks\u2014side, front, and rear distances\u2014to shape urban structures. By defining these setbacks, zoning codes balance land use efficiency with preserving the surrounding environment&#8217;s character.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Side setbacks maintain space between buildings, preventing congestion. Front setbacks enhance streetscapes, creating visual buffers and allowing space for trees and bike parking. Rear setbacks ensure privacy and outdoor space separation.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Some urbanized cities in San Francisco and New York have no building setbacks, and you can build directly against the neighbor\u2019s property. On the other hand, Los Angeles requires at least 5 feet on the sides and 10 feet in the front and rear.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Unit Density<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Unit density dictates the maximum number of residential units allowed in a given area. This restriction is a crucial aspect of urban planning, influencing the overall population density and character of a neighborhood. By setting specific limits on unit density, zoning aims to balance the need for housing with considerations such as infrastructure capacity, traffic flow, and the preservation of community aesthetics. These restrictions play a vital role in shaping the social and physical fabric of a locality, ensuring sustainable, harmonious development.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/zoning-1024x225.jpeg\" alt=\"Snippet of Los Angeles zoning summary\" class=\"wp-image-164459\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/zoning-1024x225.jpeg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/zoning-300x66.jpeg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/zoning-768x169.jpeg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/zoning.jpeg 1207w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Snippet of <span data-preserver-spaces=\"true\">Los Angeles zoning summary<\/span><\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Incentivizing Urban Development Through Affordable Housing<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">In transit-oriented neighborhoods, capitalizing on&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/institutional-investors-are-buying-affordable-housing-in-droves\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">affordable housing<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;initiatives strategically amplifies unit density, building height, FAR, and other zoning parameters, thereby expanding the scope of your project. If your development lies within a half-mile radius of a metro station, it&#8217;s probable that established policies facilitate augmenting zoning parameters by allocating a specific percentage of units to affordable housing.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For instance, dedicating 10% of your units to low-income housing may translate to a 40% increase in unit counts and a 50% rise in FAR, effectively allowing your project to grow by up to 50%. Even in the absence of preexisting policies, proactive engagement with the city could result in negotiations for incentives.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">While not a by-right entitlement, such negotiations are often successful due to the general municipal inclination toward fostering affordable housing. Moreover, state-level incentives may also be accessible to bolster your project&#8217;s viability.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Neighborhood Ordinances: Harmonizing Community Values and Development Objectives<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">In each neighborhood, the presence or absence of a neighborhood ordinance plays a pivotal role, serving as the regulatory backbone for urban development. Understand how these ordinances strike a balance between community interests and the imperative for progress, ensuring the evolution of neighborhoods aligns with their distinct character.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Locating these ordinances isn&#8217;t always straightforward. While some are conveniently accessible online, from sources like the zoning map or the city&#8217;s website, others necessitate direct contact with the city&#8217;s planning staff.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The content of these ordinances varies widely; some may span just a few pages, delineating specifics like building height limitations or transitional requirements from single-family home lots. In contrast, others may extend up to a hundred pages, imposing detailed criteria encompassing design colors, historical features, shapes, and materials.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Remember: The lengthier the ordinance, the more time-consuming the approval process, necessitating careful consideration.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">By-Right vs. Discretionary Review<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">In general, adhering to specified zoning parameters categorizes your project as by-right, alleviating the need for discretionary reviews and neighborhood hearings by the planning department. However, exceptions exist, and legal challenges may arise, stemming from concerns like environmental, traffic, or historical impacts.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Interestingly, even if your project aligns with zoning parameters, larger developments may necessitate discretionary reviews imposed by the city. Notably, certain cities uniformly mandate discretionary reviews, even for a single-family home, a practice more prevalent in smaller cities.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Meanwhile, discretionary review allows local authorities to scrutinize projects more closely. This in-depth examination considers various factors, including community input, aesthetics, and potential impacts on the neighborhood. While this process ensures a tailored approach to each project, it also introduces complexity, as decisions may involve negotiations and public hearings. Discretionary review serves as a mechanism for municipalities to balance the need for development with the preservation of community interests and character.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">While this article doesn&#8217;t encompass the entirety of the intricate, ever-evolving subject of zoning, we\u2019ll discuss that in a coming article. In the meantime, I encourage you to share your questions or additional insights in the comments section.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_a17a77d6699a53b1e9d4c711c3d0601c\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_2af822183d60855c16b8f11dd10f3e47\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-gold-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Get the Best Loan Today<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Find trusted, <em><strong>investor-friendly<\/strong><\/em> lenders who specialize in your strategy. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=button-custom-event-block_8f3e51cf5bb53ec793707ab023bc64dd class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\"\n        x-on:click=\"window.analytics.track('Blog Block | B2C Marketplace Lender Finder', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/development-zoning-fundamentals',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Find a Lender<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Marketplace-Blog-Blocks-Lender-v3.png\" alt=\"investor friendly lender, investor friendly real estate loans\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/signup\"\n        x-on:click=\"window.analytics.track('Blog Block | Acquisition | Free Membership Signup', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/development-zoning-fundamentals',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Developers live and die by zoning laws. Every investor should know their local market&#8217;s rules. Here&#8217;s how you can figure them out.<\/p>\n","protected":false},"author":286556,"featured_media":164456,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7384,7119],"tags":[],"class_list":["post-164453","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics-policy","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/164453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/286556"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=164453"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/164453\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/164456"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=164453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=164453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=164453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}