Real Estate Investment Chapter 2 Land Use Controls © 2011 Cengage Learning

Key Terms Alienation Building codes Condemnation Deed restriction Eminent domain Environmental impact statement Government influences Sewer and drinking water services Subdivision Variance Zoning laws

© 2011 Cengage Learning History of Land Use Controls In early U.S. times, most land owned by governments. Movement West caused small towns to grow. In the East, focus of controls was on orderly development of streets and infrastructure. It became apparent that the layout of streets and location of utility systems could be more efficiently accomplished by imposing land use controls.

© 2011 Cengage Learning Zoning Typically, a municipal zoning law is under the control of a regulatory body, usually a zoning commission. Generally, the basic designations are residential, commercial, industrial, and agricultural. Zoning laws may be changed. Or a property owner may seek a variance.

© 2011 Cengage Learning Building Codes Intended to protect the public against low quality or dangerous construction. Provide minimum standards for structural loads, ventilation, electrical installation, plumbing, and fire protection. Code requirements don’t end when construction is complete. they continue during its use The methods of enforcement vary with the community.

© 2011 Cengage Learning Subdivision Requirements Flood control districts have been created and given authority to set minimum requirements in land development. The FHA and the VA have set minimum standards for the subdivisions in which they will agree to underwrite homes. OILSR has disclosure requirements for larger land developments.

© 2011 Cengage Learning Planning The implementation of zoning laws requires a certain amount of community planning, early zoning’s emphasis on the status quo gave little encouragement to the concept of urban or regional planning. The 701 Program

© 2011 Cengage Learning Restrictions by Private Agreement Deed restrictions Limitations of private agreements Ski Masters of Texas vs. Heinemeyer Termination of restrictions Failure to enforce Agreement of the parties New zoning requirements Condemnation or other legislative action

© 2011 Cengage Learning Eminent Domain Public authority negotiates with property owner to determine acceptable price for the property. Sometimes government permits eminent domain by private and quasi-public companies that serve a public need. Kelo versus the City of New London

© 2011 Cengage Learning Do Restrictive Rules Classify as a Taking? In 1987, the U.S. Supreme Court ruled that land use officials may be liable for damages if zoning regulations prevent landowners from using their property. First English Evangelical Lutheran Church Lucas v. South Carolina Coastal Council

© 2011 Cengage Learning Government Influences on Land Use Restrictions on Sewer and Water Lines Water Restrictions Sewage Disposal Electricity and Natural Gas The Green Revolution

© 2011 Cengage Learning Environmental Impact Statement National Environmental Policy Act of 1969 requires the preparation of an EIS for any major federal project that will affect the environment. Copies are commonly submitted to the affected school district, water department, sewage control district, flood control district, and highway department.