31 July Zoning Laws and How to Work with Them July 31, 2024 By Melisa Rana Commercial Real Estate News, Property Investment apartment, building renovation, commercial real estate tenants, multi-family property, real estate trends, safety 0 ZONING LAWS AND HOW TO WORK WITH THEM July 31, 2024 | Property Investment, Commercial Real Estate News | real estate trends, safety, building renovation, commercial real estate tenants, muilt-family property, apartment Access to affordable housing has been an ongoing issue all across North America, and communities everywhere have been searching for their own solutions. In New York City, an attempt to address this problem has led to widespread debate and plenty of tension. That attempt? New zoning laws. To be a bit more specific, New York City has a regulation known as the Floor-Area-Ratio cap (or “FAR” cap) which restricts the maximum height of new residential construction within certain areas of the city, like the historic Hell’s Kitchen. We’ve previously discussed how developers have started to convert empty office buildings into apartments in order to add housing opportunities but NYC’s FAR cap might be limiting creative solutions like this. Spectators to this discussion may find themselves wondering if these zoning laws are such a hindrance, why were they put in place originally? And if some zoning laws are only a thorn in the sides of developers, investors, and the average renter, how have they lasted this long? Let’s discuss! What are Zoning Laws? Broadening the discussion for just a second, let’s dive into a few definitions and some background information on zoning laws. To simplify, zoning laws are the rules and restrictions that local governments create in order to organize the layout of its cities and protect the people that live there when it comes to new construction. These laws vary between municipalities, counties, cities, and sometimes even neighborhoods to serve the unique needs of their area. Through zoning laws, cities are separated into different districts (residential, commercial, industrial, etc.), ensuring that houses are far from any location that uses dangerous or noisy machinery (as just one example), that would be unpleasant for homeowners to deal with. While zoning laws are often looked at as helpful standards as cities grow, critics (like the proponents of lifting the FAR cap) say that they allow exclusionary practices. As we’ve previously discussed, NIMBY or “Not In My Backyard” is a term associated with wealthier communities that have used things like zoning laws to preserve their local amenities and keep affordable housing developments away. As a historic district, some are arguing that a version of this may be occurring in parts of Hell’s Kitchen, with those against lifting the FAR cap only wanting to preserve the iconic look of the area's mid-sized housing despite the cost of living that is forcing some locals to move out. “To protect, organize, and exclude”--these are some of the terms associated with zoning laws in the past. But are property owners stuck with whatever these guidelines dictate, whether good or bad? How Can Property Owners Work Within Their Zoning Laws? It remains to be seen whether the FAR cap will be lifted in New York City, creating more opportunities to build up, but also compromising some of the city’s more memorable neighborhoods. Some proponents of keeping the cap in place point out that there’s plenty of room for affordable housing in New York already, and they argue the law as it stands doesn’t actually stop office-to-residential conversions like some believe. Either way, zoning laws are designed to be worked with, and exceptions are made all the time as the need arises. For example, although zoning laws normally prohibit businesses from being run out of a residential zone, business owners can apply for a license or request an exemption with some negotiation and guideline adherence. In the same way, while homeowners may run into trouble if they start on a new addition before doing their homework, exceptions are often made for commercial developers without any need to repeal standing laws. Zoning laws are supposed to help cities grow and prosper, and they are designed to change if they need to! Developers who communicate their needs and are open to alternate solutions should have no problems achieving their goals. Read here for more on how developers are finding creative ways to meet demand. And for all of your commercial property inspection needs, stick with National Property Inspections. Comments are closed.