1. California Real Estate Principles, 10.1 Edition
Chapter 13
Land-use Planning, Subdivisions, Fair Housing, and Other Public Controls

2. Chapter 13 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.

3. Government Land Planning and 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

4. 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

5. Zoning 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

6. 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.

7. 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.

8. 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.

9. 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.

10. Building and Health Codes
Minimum standards for
design
construction
use
occupancy
maintenance
Building permits obtained from local Building Department
Sanitation problems reported to local
Health Department

11. 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

12. 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
Sub-divider keeps 3 years

13. Common Interest Development (CID)
Condominium
Planned Unit Development (PUD)
Stock Co-Operative
Community Apartment

14. 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.

15. Condo Vs. PUD Condominium PUD 9 8 1 2 3 4 5 6 7 10 Low Rise Buildings
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.

16. 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

17. Housing and 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

18. The California Fair Employment and Housing Act (FEHA)
Prohibits Housing Discrimination Based on:
Race
Religion
National Ancestry/Citizenship
Sex
Sexual Orientation
Martial Status
Disability
Gender Identification
Foreign Language Spoken

19. 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

20. Federal Anti-Discrimination
Civil Rights Act of 1968
Jones vs. Mayer rests on 13th amendment (Jones v. Mayer validated the Civil Rights Act of 1866)
Violations filed with HUD
Enforced by HUD & U.W. Attorney General

21. Definitions
Blockbusting
Steering
Redlining