{"id":164839,"date":"2024-01-17T12:35:43","date_gmt":"2024-01-17T19:35:43","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=164839"},"modified":"2024-02-02T02:35:06","modified_gmt":"2024-02-02T09:35:06","slug":"how-to-determine-the-right-zoning-for-real-estate","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/how-to-determine-the-right-zoning-for-real-estate","title":{"rendered":"Wait: Don\u2019t Get Started On Your Development Project Unless You Have Zoning in Place"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC1804401794\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">In my&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/development-zoning-fundamentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">previous article<\/span><\/a><span data-preserver-spaces=\"true\">, we delved into the essential elements of development zoning. We explored key zoning designations such as R or C, critical parameters including setbacks, FAR, and building heights, strategies for enhancing density via affordable housing, the role of neighborhood ordinances, and the distinctions between by-right and discretionary review processes.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In this article, we&#8217;ll delve into the crucial task of determining the development zoning for your project\u2014an essential step to undertake before acquiring any development project. Mastering the intricacies of development zoning necessitates a strategic methodology, and we&#8217;ll unveil three pivotal strategies.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Online Platforms and Geographic Information System (GIS) Mapping<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Digital tools can really simply your investigative efforts. Utilize online platforms and geographic information system (GIS) mapping to access invaluable data. Websites such as&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"http:\/\/zimas.lacity.org\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">this one from the city of Los Angeles<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;serve as exemplary resources. By simply entering the street address, these interactive zoning maps can help you visualize zoning boundaries, overlays, and specific stipulations with ease.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">GIS websites offer a wealth of information detailing zoning designations, height categories, and occasionally density incentives linked to transit proximity. Additionally, they may encompass neighborhood ordinances associated with specific lots, although accuracy is not always definitive.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, while GIS provides valuable insights, it doesn&#8217;t prescribe the precise scope of permissible construction. Determining the feasibility of your project hinges on interpreting the zoning designations in conjunction with the city&#8217;s zoning guidelines, thereby synthesizing a comprehensive understanding tailored to your development objectives.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Let&#8217;s illustrate this with a hypothetical city. Consider a project labeled R3-2. Consulting the zoning handbook, you discern that this designation signifies a residential zoning classification. The &#8220;3&#8221; indicates a density allowance of one unit per 800 square feet (sf) of lot area. Thus, for an 8,000 sf lot, you can construct up to 10 units.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Additionally, the 3 mandates specific requirements, such as allocating one parking space per unit and maintaining a 10-foot setback from the property line on all sides. Depending on the jurisdiction, the 3 may also convey additional stipulations.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Meanwhile, the 2 following the R3 designation signifies the height category. In our hypothetical city, this translates to a permissible building height of 45 feet and a floor area ratio (FAR) of 3:1. In alternative jurisdictions, you might encounter a designation like R3-45, which straightforwardly indicates a maximum building height of 45 feet.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Navigating density incentives can be intricate. When exploring GIS platforms, focus your search on terms like &#8220;transit orientation incentives&#8221; or &#8220;density incentives&#8221; to uncover potential bonuses.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If your search proves unfruitful, consider examining state-level incentives. For instance, a specific state might offer incentives for projects situated within a half-mile radius of a metro station, enabling a 60% increase in both unit density and FAR upon allocating 10% of the units to low-income residents. Furthermore, state incentives could potentially reduce parking requirements and permit higher building heights.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In the context of our example project, by designating one unit for low-income housing, you&#8217;re able to construct up to 16 units. It&#8217;s worth noting that calculations typically necessitate rounding up to the nearest whole number. Thus, if your base unit count is 11, a 10% allocation would equate to two&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 units<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Contacting Local Planners<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Engaging directly with city planners responsible for urban planning is a good alternative. While digital tools offer initial insights, consulting municipal offices provides a tailored, authoritative understanding, complementing your GIS-based research. This approach not only validates your findings but also uncovers any local ordinances potentially overlooked in GIS data.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">When reaching out to local authorities, furnish specific details about your property or project, including address, lot size, and intended use. This facilitates accurate identification of the relevant zoning designation, enabling officials to outline associated requirements or restrictions. Proactive dialogue with city planners fosters collaboration, giving you invaluable insights into zoning dynamics and navigating development opportunities or constraints effectively.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Furthermore, consider scheduling an in-person meeting or consultation with zoning officials to discuss your project in depth. This personalized approach facilitates a comprehensive review of your plans, enabling authorities to offer tailored guidance and clarify any ambiguities related to zoning designations. By fostering an open, collaborative dialogue with local authorities, you can navigate the complexities of zoning regulations with confidence, ensuring your project aligns with the applicable zoning designations and regulatory frameworks.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Responsiveness can vary among planners. To expedite communication, I recommend employing multiple contact methods simultaneously, such as initiating phone calls, sending emails to both the general email address and a few individual planners, and securing an in-person appointment. This multifaceted approach increases the likelihood of a prompt and comprehensive response, facilitating a smoother progression through the zoning process.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Asking Consultants<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Engaging the right consultants can be very effective in navigating the complexities of development zoning, but it could cost you a few thousand dollars. These experts bring specialized knowledge and experience, offering invaluable insights that complement your understanding of zoning regulations.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Not all consultants will give you good service, so be careful whom you ask for help. When selecting consultants, prioritize individuals or firms with a proven track record in your specific area of interest, whether it&#8217;s residential,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/commercial-real-estate-fundamentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">commercial<\/span><\/a><span data-preserver-spaces=\"true\">, or mixed-use developments. Alternatively, you could also reach out to local&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rookie-319\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">developers<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;who have a proven track record if you\u2019re interested in a joint venture.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">When approaching consultants, articulate your project&#8217;s objectives, scope, and any preliminary findings or challenges you&#8217;ve encountered. This foundational information enables consultants to tailor their expertise to your unique needs, providing targeted guidance and solutions.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In the preliminary stage, the main consultants needed are architects or land-use consultants. If the site could be contaminated, hire an environmental consultant to do a Phase I assessment, which typically costs a few thousand dollars and takes a few weeks.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Additionally, it&#8217;s crucial to define clear expectations regarding deliverables, timelines, and communication protocols upfront. For questions limited to zoning parameters, which typically take only 10 to 20 minutes, consultants may offer their insights at no cost. However, for comprehensive feasibility studies encompassing design options and floor plans, these services should be anticipated to cost several thousand dollars.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Some Worthy Tips<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">As a bonus, here\u2019s a look at some other factors to consider.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Escrow timeline<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Extending the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-escrow-and-how-does-it-work\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">escrow<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;period is essential for securing development rights, especially with challenging zoning regulations. I recommend at least a 30-day contingency period, but for larger projects, consider a three-to-six-month escrow to do a thorough feasibility study and get some feedback from the planning department.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Power<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">During escrow, consult with the local power department or a dry utility specialist to determine the power supply options for your site. Larger projects often necessitate transformers and underground conduits, both of which entail significant costs and time. If securing power is projected to span two years, you must factor this into your project schedule.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Other utilities<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">While utilities such as gas, water, and sewer typically present fewer challenges, their installation can become complex and costly in rural areas. Thus, conducting thorough&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-investment-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">due diligence<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;on utility provisions is essential to mitigate potential delays and budget overruns in your development project.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">City timeline<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Every city possesses its own unique timeline for the entitlement and permitting processes, reflecting varying regulatory frameworks and administrative efficiencies. In some cities, such as Seoul, Korea, the permitting phase can be done in a few months. Conversely, cities like San Francisco exemplify a more protracted timeline, where both entitlement and permitting processes need to be done sequentially and usually take three years.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In cities where parallel entitlement and permitting are allowed, developers gain a strategic edge. Initiating the permitting process before full entitlement completion can expedite the timeline by six months or more, a benefit of this concurrent approach.<\/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\">I hope these strategies serve you well on your next development project. If you have other tips or questions that you wish to share, feel free to comment below or reach out to me.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_4e0cc69028e6301b1297bc8bef41bdd4\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_f2f08ca259988ec2da5279d7a6ca17a9\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 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 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/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:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_9fcabd14774fa544b54feeff78f30d84 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/how-to-determine-the-right-zoning-for-real-estate&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 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\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" 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 href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/how-to-determine-the-right-zoning-for-real-estate&#039;,\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>We&#8217;ve talked about zoning rules and regulations. Now, we need to talk about getting the right zoning for your project. Here&#8217;s how to do that.<\/p>\n","protected":false},"author":286556,"featured_media":164842,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5527,7119],"tags":[],"class_list":["post-164839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-real-estate-investing","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/164839","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=164839"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/164839\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/164842"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=164839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=164839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=164839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}