Raleigh zoning changes to relieve 2/3/4-plex shortage

Raleigh zoning changes to relieve 2/3/4-plex shortage

Developer · DC & NC · Member since 2019 · 113 posts · 95 votes

The city of Raleigh is considering two changes to its UDO (zoning ordinance) which would legalize duplexes almost citywide, and townhouses or small apartments in many more zoning districts -- particularly along the proposed BRT corridors. Chime in here:

https://publicinput.com/F5368

Currently, it is illegal to build even a duplex in any of the pink areas on this map, and functionally difficult in many of the green areas, too. This isn't fair, and is the #1 reason why multi-unit buildings are almost nonexistent in Raleigh.

https://raleigh-residential-zo...

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Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
5y

This post contains my commentary on why this change may have come about. 

Under the topic "Build, preserve, and retrofit more than two million homes and commercial buildings to address the affordable housing crisis" the text from FACT SHEET: The American Jobs Plan says:

  • "Eliminate exclusionary zoning and harmful land use policies. For decades, exclusionary zoning laws - like minimum lot sizes, mandatory parking requirements, and prohibitions on multifamily housing - have inflated housing and construction costs and locked families out of areas with more opportunities. President Biden is calling on Congress to enact an innovative, new competitive grant program that awards flexible and attractive funding to jurisdictions that take concrete steps to eliminate such needless barriers to producing affordable housing." 

With potentially large amounts of federal funds sloshing around, I believe the city wants to get in on the federal grant money, thus is taking "concrete steps to eliminate such needless barriers to producing affordable housing."

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  • Developer · Raleigh · Member since 2020 · 6 posts · 5 votes
    5y
    This is exciting news for Raleigh!

    Payton, do you know of other cities that have done this type of change to the zoning code in the last 10 years?
  • Real Estate Agent · Raleigh, NC · Member since 2015 · 16 posts · 10 votes
    5y

    Thx for posting, I submitted my support for the change

  • Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    5y

    This post contains my commentary on why this change may have come about. 

    Under the topic "Build, preserve, and retrofit more than two million homes and commercial buildings to address the affordable housing crisis" the text from FACT SHEET: The American Jobs Plan says:

    • "Eliminate exclusionary zoning and harmful land use policies. For decades, exclusionary zoning laws - like minimum lot sizes, mandatory parking requirements, and prohibitions on multifamily housing - have inflated housing and construction costs and locked families out of areas with more opportunities. President Biden is calling on Congress to enact an innovative, new competitive grant program that awards flexible and attractive funding to jurisdictions that take concrete steps to eliminate such needless barriers to producing affordable housing." 

    With potentially large amounts of federal funds sloshing around, I believe the city wants to get in on the federal grant money, thus is taking "concrete steps to eliminate such needless barriers to producing affordable housing."

  • Matt StricklenPro Member
    Investor · Austin TX · Member since 2020 · 227 posts · 152 votes
    5y
    Originally posted by @Payton Chung:

    The city of Raleigh is considering two changes to its UDO (zoning ordinance) which would legalize duplexes almost citywide, and townhouses or small apartments in many more zoning districts -- particularly along the proposed BRT corridors. Chime in here:

    https://publicinput.com/F5368

    Currently, it is illegal to build even a duplex in any of the pink areas on this map, and functionally difficult in many of the green areas, too. This isn't fair, and is the #1 reason why multi-unit buildings are almost nonexistent in Raleigh.

    https://raleigh-residential-zo...

     Austin has had similar issues and been fighting over proposed code changes fir a few years now. 

    Payton Chung do you have any thoughts about what specific areas in Raleigh developers will go to first if changes are approved? I'll be looking into what you said about BRT corridors. Any other insights?

  • Developer · DC & NC · Member since 2019 · 113 posts · 95 votes
    5y

    Any location where there's existing teardown activity is obviously a place where new-build prices make sense. One goal is to encourage additional residential along the four BRT corridors -- New Bern, Western, Wilmington... and some other North Raleigh route still to be determined.

    Of potential interest to forum members is that the proposed text could allow many existing large houses to be legally converted into duplexes.* Right now, for instance, a duplex in an R-6 zone (common in southwest Raleigh, where my properties are) requires a 65' wide, 1/3 acre lot. But the TOD-R change would allow a duplex on a 50' wide, 1/7 acre lot -- and would still allow an ADU behind. Better yet, in a TOD-R zone, there's no additional required parking. That's mostly notable because it means you can provide parking that doesn't meet exacting city codes for driveway dimensions, etc.

    The most reported-upon examples of places that have enacted similar policies include the states of Oregon and Vermont, and cities like Minneapolis. Charlotte is also having similar conversations.

    * Subject to a weird section of Raleigh's UDO (Sec 2.6.2) that limits additions to houses to the same height, roof pitch, and materials as the existing house. Not sure why they prefer teardowns to additions.

  • Developer · Raleigh · Member since 2020 · 6 posts · 5 votes
    5y

    This video is helpful explaining the "missing middle" The Houses that Can't be Built in America - The Missing Middle

  • Contractor · Raleigh-Durham, NC · Member since 2016 · 17 posts · 10 votes
    5y

    Great post and information. I will be sure to follow this as this may lead to some real opportunities for us developers.

  • Honolulu · Member since 2020 · 134 posts · 51 votes
    5y

    @Payton Chung thanks for sharing!!

  • Developer · DC & NC · Member since 2019 · 113 posts · 95 votes
    5y

    Update: the citywide "Missing Middle Housing" UDO text change proposal passed Planning Commission unanimously. Yesterday City Council (video link, skip to 24:35) discussed it, and voted to re-hear a few changes on 6/15, and set a 7/6 public hearing on the item.

    Background materials: http://go.boarddocs.com/nc/ral...

    To comment at a public hearing: https://raleighnc.gov/public-h...

    (The TOD text change is still in the Planning Commission process.)

  • Developer · Raleigh · Member since 2020 · 6 posts · 5 votes
    5y
  • Member since 2018 · 57 posts · 22 votes
    5y

    Interesting to see how this works in practice. Looks like R-4 will allow duplexes but not quads. But that's just a quick reading of it. 

  • Developer · DC & NC · Member since 2019 · 113 posts · 95 votes
    4y

    Fresh off the presses: "A newly proposed text change, TC-20-21, will be the next step in a more flexible zoning code designed to allow for smaller homes on smaller lots and denser development near high-frequency transit... You can provide your feedback on our Engage Raleigh Missing Middle 2.0 webpage."

    Two information sessions this week, one Wed (tonight!) and one Thu:

    https://raleighnc.gov/news/202...

    After you've learned more, please do chime in - it's important that the city hear from people who would like to add homes.

  • Contractor · Raleigh-Durham, NC · Member since 2016 · 17 posts · 10 votes
    4y

    Thanks for the update Payton, and will do. I've really enjoyed developing and building on the "small lot option" lots and find them to be great projects with great turn around times. They also offer a lot of flexibility in using different type of exit strategies. 

  • Member since 2020 · 1 post · 0 votes
    4y

    Hi Payton! Recently moved back to Raleigh during Covid and want to get more involved in real estate here. 

    The TC-20-21 changes look very promising for investors - do you know what the City timeline for review looks like?

  • Developer · DC & NC · Member since 2019 · 113 posts · 95 votes
    4y

    TC-20-21 passed council last week, as did the Frequent Transit Areas map.

    All of the city's resources on this are gathered here:

    https://raleighnc.gov/SupportP...

    The net of this is: there are now LOTS of places in Raleigh where multi-unit buildings are now permitted... i.e., 21 DUA in R-4 and 54 DUA in R-10. (HOAs may still have other restrictions, though.)

    To make the process of building new ADUs easier, the city is also doing an "ADU Open Call" right now. Later this year, there will be pre-approved ADU plans available from the city that you can then build in your backyard with a minimum of red tape.

    https://raleighnc.gov/services/zoning-planning-and-development/adu-open-call

  • Developer · DC & NC · Member since 2019 · 113 posts · 95 votes
    4y

    Of particular interest to this forum might be the "flag lot" provision, which was adapted from Durham. It would allow an owner to split off the backyard into a separate lot and build a "tiny house" (1-2 units, each <600 sq ft) on it. By creating a separate fee-simple lot, this makes the new unit's construction much easier to finance conventionally.

    The NYT had a pertinent article last October about how real estate investors are using similar laws in San Diego to add units to backyards:

    https://www.nytimes.com/2021/1...

  • Contractor · Raleigh-Durham, NC · Member since 2016 · 17 posts · 10 votes
    4y

    Thanks so much for keeping us up to date on the city's passing of this new udo. You've really been on top of this from the beginning. I hope this means Raleigh is on it's way to becoming more developer/builder friendly for interior lot builds and shortens the approval process dramatically to where it's actually worth executing a project like the small lot options.

  • Developer · DC & NC · Member since 2019 · 113 posts · 95 votes
    3y

    From https://raleighnc.gov/planning/more-homes-more-choices; registration is not yet open, though:

    Small-Scale Homebuilders Workshop
    This half-day workshop is designed to educate small-scale and minority builders about Raleigh’s development regulations and the “nuts and bolts” of constructing missing middle housing. The goal is to encourage and support builders who seek to provide more housing options for families in Raleigh. Join us for an opportunity to engage with city staff, hear a panel discussion with industry leaders, and participate in roundtable conversations with other attendees.

    Date: Thursday, February 23
    Time: Check in: 8-9 a.m. Event: 9 a.m.-12 Noon
    Location: NCSU McKimmon Center, 1101 Gorman Street

    (Also, just noticed a typo in my post above. A flag-lot [or, as Keith calls them, interior lot] "tiny house" is not that tiny; it's <1200 sq ft, but can be either one or two units; UDO has details.)

  • Member since 2018 · 11 posts · 3 votes
    3y

    Thank you for all of the info guys! I'm looking to build an ADU or Duplex in the next few months. I have a property under contract in Raleigh. Looks like the above workshop was rescheduled:

     https://raleighnc.gov/planning...

    Date: Friday, March 31, 2023
    Time: Check in: 8-9 a.m. Event: 9 a.m.-12 Noon
    Location: NCSU McKimmon Center, 1101 Gorman Street

    Registration is free, but required: Sign up to be notified when registration opens.
    We look forward to seeing you there.

  • Member since 2022 · 10 posts · 2 votes
    3y
    Quote from @Payton Chung:

    TC-20-21 passed council last week, as did the Frequent Transit Areas map.

    All of the city's resources on this are gathered here:

    https://raleighnc.gov/SupportP...

    The net of this is: there are now LOTS of places in Raleigh where multi-unit buildings are now permitted... i.e., 21 DUA in R-4 and 54 DUA in R-10. (HOAs may still have other restrictions, though.)

    To make the process of building new ADUs easier, the city is also doing an "ADU Open Call" right now. Later this year, there will be pre-approved ADU plans available from the city that you can then build in your backyard with a minimum of red tape.

    https://raleighnc.gov/services/zoning-planning-and-development/adu-open-call


     Payton - the links you posted aren't working/have been archived.  Can you tell me how you got to 21 units per acres for R-4 and 54 units per acre in R-10?  
    My math gets me lower numbers.  Wondering what I'm missing.  Thanks!   -Neil

  • Developer · DC & NC · Member since 2019 · 113 posts · 95 votes
    3y

    Updated link: https://raleighnc.gov/planning...

    The DUA figures are for the "Frequent Transit Development Option," which isn't available everywhere. You can see where it applies using iMAPS

    https://maps.raleighnc.gov/ima...

    Choose "layers" in the upper right, then Planning, Raleigh Planning, Urban Form, Frequent Transit Area.

  • Member since 2022 · 10 posts · 2 votes
    3y

    Thanks Payton!

  • Contractor · Wake Forest, NC · Member since 2019 · 138 posts · 132 votes
    3y

    @Andrew S.

    Have you found a builder yet? I can help if not. I’m in Raleigh

  • Developer · DC & NC · Member since 2019 · 113 posts · 95 votes
    2y

    Have seen many new-build duplexes come to market since this passed, but the first one I've noticed which is essentially a triplex (duplex+ADU), sold together as an income property, was just listed at 2824 Providence Rd in Southeast Raleigh.

  • Real Estate Agent · Raleigh, NC · Member since 2019 · 308 posts · 288 votes
    2y

    I would kill to see more SMF pop up in the Triangle. And I know many investors who would too.

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