Land Use Controls

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Lecture 8

• Land Use Controls

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Lecture 8

• Public Controls on Real Estate Use

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Limits and Public Controls

• 1. Police Power
• 2. Eminent Domain
• 3. Taxation and Assessment
• 4. Escheat

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Police Power

• Enables governments to protect the public by
  regulating factors that can adversely affect the
  public health, morals, safety, and general
  welfare.
• Four Types of Police Power
• 1. Zoning Ordinances
• 2. Subdivision Regulations
• 3. Construction Codes
• 4. Occupancy Codes

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Police Power Zoning Ordinances

• Elements of the Zoning Ordinance
• Land Use Regulation Industrial, Commercial,
  Residential, Agricultural (may contain
  subcategories)
• Height Regulations Specific to area (buildings
  in residential areas v. downtown areas v. near
  airports)
• Area (bulk) Regulations Improvement-to-land
  coverage ratios, restrictions to land size and
  building setbacks

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Police Power Zoning Ordinances

• Changes to Zoning Ordinances
• Variances Hardship must be proven on height or
  area regulations
• -Example Changes in setbacks
• Rezoning Application Desired change in land use
• -Example Single-Family Residential to
  Multi-Family Residential or Commercial
• Nonconforming Use Real estate constructed and
  in use prior to governed land-use regulations

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Police Power Subdivision Regulations

• Local planning departments review and approve
  builders plans for developments within a
  Municipality in accordance with Comprehensive
  Plan.
• Prevents construction on floodplains, areas of
  poor or inadequate drainage capacity, poor soil
  conditions
• Prevents development in areas of overpopulation
  and lack of infrastructure
• Reviews and approves plat maps (public records)

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Police PowerConstruction Codes

• Imposed by local government. Specifies floors,
  walls, ceilings, roof structures, electrical and
  plumbing, etc.
• Steps of Governance of Construction Codes
• 1. Application for Building Permits
• 2. Stages during construction
• 3. Certificate of Occupancy

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Police PowerOccupancy Codes

• Designed to establish socially acceptable
  minimum standards for safe and healthy occupancy
  of existing and newly constructed buildings.
• Condemned Buildings
• Properties lacking required facilities

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Eminent Domain

• A right vested in the state government and given
  to a local government (even given to private
  agencies) to acquire possession of private
  property
• Condemnation The ACT of converting private
  property to public property
• Just Compensation Compensation equal to the
  value to the property

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Eminent Domain

• Forms of an Eminent Domain Take
• 1. Full Taking
• 2. Partial Taking
• Legal Interests of an Eminent Domain Take
• 1. Fee-Simple Take
• 2. Perpetual Easement
• 3. Temporary Construction Easement

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Eminent Domain

• Compensations Due to Property Owners
• 1. Market value of the land and improvements
  being taken by Eminent Domain
• 2. Severance damages to property from a change in
  development or property use
• Cost to cure the severance damages (if feasible)
• In Florida, owner reimbursed for legal fees,
  appraisers, land planners, etc.

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Example of Severance Damages(BEFORE PARTIAL
TAKING)
SITE A 20 psf 2 Access Pts
SITE C 12 psf 1 Access Pt
SITE B 20 psf 2 Access Pts
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Example of Severance Damages(AFTER PARTIAL
TAKING)
SITE A 12 psf 1 Access Pt
SITE C 12 psf 1 Access Pt
SITE B 20 psf 2 Access Pts
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Taxation and Assessment

• The taxation of real property to provide public
  services (I.e. schools, roads, etc.). Handled by
  office of the Property Appraiser.
• Property Tax Lien Placed on real estate when
  delinquent taxes exist. Supercedes to any lien
• Special Assessments Benefit to specific
  properties, not the general public (stormwater
  retention, streets, etc.)

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Property Appraiser Web Sites

• City of Jacksonville/Duval County
• http//pawww.coj.net/pub/property/default.htm
• St. Johns County
• http//pa.co.st-johns.fl.us
• Clay County
• http//www.ccpao.com/ccpao/ccpao.asp

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Escheat

• Enacted when a property owner dies and does not
  leave a will (intestate), and no legal heirs can
  be found.
• STATE GOVERNMENT ESCHEATS
• THE PROPERTY FOR THE STATE

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Lecture 8

• Public Agencies Influence in the Real Estate
  Business

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Roles of Federal Government

• Antitrust Litigation (U.S. Justice Department)
• Prevents setting fixed sales commission rates in
  a market
• Mortgage Regulation (Federal Reserve Board, HUD)
• RESPA, ECOA, Truth-In-Lending, Mortgage
  Disclosure Act
• Right of Eminent Domain
• Air and Water Controls (EPA)
• Prevents Unfair Trade Practice (Federal Trade
  Commission)
• Housing and Financing for Low- to Moderate-income
  families
• FHA, VA, Farmers Home Loans
• Promotes standards of construction quality

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Roles of State Government

• Controls over bundles of rights
• Estates, Escheat, etc.
• Right of Eminent Domain

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Roles of Local Government

• Levy ad Valorem Property Taxes and their
  distributions
• School districts, special improvement districts,
  and townships can levy ad Valorem taxes.
• Impose and enforce zoning and land use
  regulations
• Impose and enforce building, subdivision, and
  safety regulations
• Eminent Domain passed down by State Government

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Lecture 8

• Private Controls on Real Estate Use

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Private Controls and Limits

• Non-governmental units impose limits.
• Three Major Types
• 1. Easements
• 2. Liens
• 3. Restrictive Covenants

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Private Controls Easements

• An easement is the right of one person to use
  the property of another for a specified purpose
  and under certain conditions that specify the
  extent of the allowable usage. The person
  holding the easement does not possess the
  property, nor does that person have the right to
  dispose the property.
• Two Types of Easements
• 1. Runs with the land
• 2. Does not Run with the land

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Private Controls Easements

• Easements which Run with the Land
• (Can be passed from one owner to the next)
• Easement Appurtenant At least two parcels,
  where one at least one parcel benefits from the
  use of another parcel
• Dominant Estate Receives benefit from easement
  use
• Servient Estate Allows use of land to benefit
  dominant estate
• Commercial Easement in Gross A right-of-way
  over one piece of land
• Railroads, pipelines, municipal utilities
• Easements which do not Run with the Land
• (Cannot be passed from one owner to the next)
• Easement-in-gross Involves only ONE parcel of
  real estate cannot be sold

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Private Controls Easements

• Creation of Easements
• 1. Express Agreement Contractual agreement
• 2. Necessity of Implication Circumstances
  requiring legal efforts as easement is required
  for land access

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Private Controls Liens

• Right of a creditor to petition the courts to
  force the sale of a debtors property in order to
  obtain payment.
• Specific Lien Affects specified real estate
• Tax lien, mortgage lien, mechanics lien
• General Lien Non-specific to specific real
  estate, but rather a specific asset holder

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Private Controls Restrictive Covenants

• Covenants placed in a deed of property
  conveyance.
• Restrictions can be imposed on land use by a
  seller, who owns adjacent parcels
• Restrictions can be imposed by a land developer,
  specially in residential developments
• General plan restriction (filed with
  municipality)
• Declaration of restrictions (referenced in deeds)
• Promote uniformity in neighborhoods to increase
  property values