©2011 Cengage Learning

California Real Estate Principles Chapter 12 Land-use Planning, Subdivisions, Fair Housing, and Other Public Controls ©2011 Cengage Learning

Chapter 12 Describe the main goals of a community general plan. Explain the difference between government use of police power and eminent domain. List the major characteristics of the Subdivision Map Act and the Subdivided Lands Act Describe a common interest development and discuss the differences between a condominium and a planned unit development. List the major fair housing laws that prohibit discrimination in the selling or renting of real estate. ©2011 Cengage Learning

Government Land Planning & Other Public Controls Too Stringent? Or Too Lenient? PRIVATE DEED RESTRICTIONS (CC&R’s) PUBLIC LAND-USE CONTROLS POLICE POWER Regulate without compensation Zoning * Building & Health Codes * Rent Control Subdivision Regulations * Environment Regulations ©2011 Cengage Learning

General Plan Every 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 use Congestion and circulation (traffic and water) Housing at all income levels Conservation of natural resources Open space and future growth Noise problems Safety from fire, seismic (earthquake) and geological hazards Public utilities ©2011 Cengage Learning

Zoning Example of typical use: Size Zoning - to preserve property values Example of typical use: A – Agricultural I – Industrial C – Commercial R – Residential 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 ©2011 Cengage Learning

Development Tools EMINENT DOMAIN CONDEMNATION 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. ©2011 Cengage Learning

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. ©2011 Cengage Learning

PLANNING TERMS Development 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. ©2011 Cengage Learning

Zoning Changes Non-conforming – Allows for current property use to be grandfathered in when subsequent zoning changes differ from existing property usage. Variance- ONE individual owner parcel change Conditional 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. ©2011 Cengage Learning

Building & Health Codes Minimum standards for design construction use occupancy maintenance Building permits obtained from local Building Department Sanitation problems reported to local Health Department ©2011 Cengage Learning

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 Share 12 or more shares for 5 or more years Mineral, Gas and Oil (M.O.G.) 160 or more acres ©2011 Cengage Learning

Subdivision Map Act Subdivided Lands 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 ©2011 Cengage Learning

COMMON INTEREST DEVELOPMENT (CID) Condominium Planned Unit Development (PUD) Stock Co-Operative Community Apartment ©2011 Cengage Learning

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. ©2011 Cengage Learning

Condo vs. PUD Condominium P.U.D. 9 8 1 2 3 4 5 6 7 10 Low Rise Common Open Space Low Rise Buildings (More Land) High Rise Building (Small Lot) A PUD is the same as a condo, except the lot is owned fee simple. ©2011 Cengage Learning

Definitions Community Apartment Project Owner has individual interest in the land Owner 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 ©2011 Cengage Learning

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 concern Environmental Impact Report (EIR) = Concern ©2011 Cengage Learning

THE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT (FEHA) Prohibits Housing Discrimination Based on: Race Religion National Ancestry Sex Sexual Orientation Martial Status Physical Handicap ©2011 Cengage Learning

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 ©2011 Cengage Learning

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 ©2011 Cengage Learning

Review Quiz Chapter 12 Rent controls, building moratoriums, and coastal controls are examples of government use of: (a) police power (b) eminent domain (c) zoning (d) subdivision regulation ©2011 Cengage Learning

Review Quiz Chapter 12 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 ©2011 Cengage Learning

Review Quiz Chapter 12 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 ©2011 Cengage Learning

Review Quiz Chapter 12 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 ©2011 Cengage Learning

Review Quiz Chapter 12 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 ©2011 Cengage Learning

Review Quiz Chapter 12 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 ©2011 Cengage Learning

Review Quiz Chapter 12 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 ©2011 Cengage Learning

Review Quiz Chapter 12 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 ©2011 Cengage Learning

Review Quiz Chapter 12 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 ©2011 Cengage Learning

Review Quiz Chapter 12 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 ©2011 Cengage Learning

Answers to Review Quiz Chapter 12 A 6. C B 7. D D 8. C B 9. D B 10. C ©2011 Cengage Learning