©2011 cengage learning. chapter 12 land-use planning, subdivisions, fair housing, and other public...
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©2011 Cengage Learning
Chapter 12Land-use Planning,
Subdivisions, Fair Housing, and Other Public Controls
California Real Estate Principles
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Chapter 12 1. Describe the main goals of a community
general plan.2. Explain the difference between government use
of police power and eminent domain.3. List the major characteristics of the Subdivision
Map Act and the Subdivided Lands Act4. Describe a common interest development and
discuss the differences between a condominium and a planned unit development.
5. List the major fair housing laws that prohibit discrimination in the selling or renting of real estate.
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Government Land Planning & Other Public Controls
Too Stringent? Or Too Lenient?
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POLICE POWER
Regulate without compensation
Zoning * Building & Health Codes * Rent Control
Subdivision Regulations * Environment Regulations
PRIVATE DEED RESTRICTIONS (CC&R’s)
PUBLIC LAND-USE CONTROLS
General PlanEvery 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 useCongestion and circulation (traffic and water)Housing at all income levelsConservation of natural resourcesOpen space and future growthNoise problemsSafety from fire, seismic (earthquake) and geological
hazardsPublic utilities
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ZoningZoning - to preserve property values
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• 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
• Example of typical use:–A – Agricultural
–I – Industrial
–C – Commercial
–R – Residential
Development Tools
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EMINENT DOMAIN
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.
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.
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PLANNING TERMSDevelopment 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.
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Zoning ChangesNon-conforming – Allows for current property use to be
grandfathered in when subsequent zoning changes differ from existing property usage.
Variance- ONE individual owner parcel changeConditional 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.
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Building & Health CodesMinimum standards for
design construction use occupancy maintenance
Building permits obtained from local Building Department
Sanitation problems reported to local
Health Department
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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 Share12 or more shares for 5 or more years
Mineral, Gas and Oil (M.O.G.)160 or more acres
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Subdivision Map 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
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COMMON INTEREST DEVELOPMENT (CID)
Condominium
Planned Unit Development (PUD)
Stock Co-Operative
Community Apartment
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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.
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Condominium
98
12345 6
7
10
CommonOpenSpace
P.U.D.
High RiseBuilding
(Small Lot)
Low RiseBuildings
(More Land)
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Condo vs. PUD
A PUD is the same as a condo, except the lot is owned fee simple.
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DefinitionsCommunity Apartment Project
Owner has individual interest in the landOwner 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
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 concernEnvironmental Impact Report (EIR) = Concern
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THE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT (FEHA)
Prohibits Housing Discrimination Based on: Race Religion National Ancestry Sex Sexual Orientation Martial Status Physical Handicap
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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
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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
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Definitions:•Blockbusting•Redlining•Steering
Review Quiz Chapter 121. Rent controls, building moratoriums, and
coastal controls are examples of government use of:
(a) police power(b) eminent domain(c) zoning(d) subdivision regulation
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Review Quiz Chapter 122. 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
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Review Quiz Chapter 12
3. 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
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Review Quiz Chapter 124. 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
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Review Quiz Chapter 12
5. 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
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Review Quiz Chapter 126. 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
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Review Quiz Chapter 12
7. 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
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Review Quiz Chapter 128. 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
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Review Quiz Chapter 12
9. 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
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Review Quiz Chapter 1210.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
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Answers to Review Quiz Chapter 121. A 6. C
2. B 7. D
3. D 8. C
4. B 9. D
5. B 10. C
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