Zoning Due Diligence for Commercial Real Estate Transactions

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Incredible resource for anyone needing info on Zoning Due Diligence, Process, Reports, Letters, Endorsements, Coding and more! Please share!

Incredible resource for anyone needing info on Zoning Due Diligence, Process, Reports, Letters, Endorsements, Coding and more! Please share!

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  • Examples #1
  • Examples #2, #3, #5, #6, #7
  • The City is attempting to beautify its shoreline and has adopted new buffer requirements. In the event of destruction, the restaurant will have to provide a 30 foot buffer, eliminating all outdoor seating.
  • This hospital was constructed under the counties jurisdiction. Since construction, it has been incorporated into the City. This has created numerous nonconformities including setbacks and parking.
  • Apartments were built according to code. Since construction, the code has changed. Apartments in this zoning district are now allowed a maximum of 2 stories. All of the apartment buildings on this property are 3 story. Also, projects in this zoning district must now be constructed 30 feet from the front property line. Eight of the buildings on this property are constructed 7 feet from the front property line. In the event of destruction, 8 of the buildings cannot be reconstructed and the remainder must be 2 story rather than 3, resulting in substantial loss of revenue.
  • Examples #4 #8
  • This hotel was constructed in 1988 according to the specifications of an approved Site Plan EXCEPT, conformity to the required number of parking spaces per the Site Plan was contingent upon the construction of 43 parking spaces on an adjacent property owned by the hotel owner at the time of construction. When PZR performed zoning analysis as part of the lenders due diligence, it was discovered the parking spaces were never constructed and the land for the proposed parking spaces is now under different ownership . This resulted in a parking deficiency of 43 spaces. Because the parking lot was not constructed as proposed, the hotel does not enjoy a legal status. In the event of destruction of any kind, the hotel must construct 43 parking spaces on a parcel of land that cannot accommodate additional parking spaces. Also, the hotel may not expand or do major renovations or remodeling until the parking is brought into conformance.
  • Assisted living center – Upon reviewing the conditional use permit, it was identified that the CUP restricted the assisted living facility to 85 beds. The property owner illegally converted rooms to accommodate 95 beds, thus, causing the property to be in violation of the CUP
  • This apartment complex was developed on 30 acres. The property owners decided to sell 10 acres without going through the appropriate subdivision procedure, resulting in an illegal subdivision. Thus creating deficiencies in landscaping, open space and density.
  • Have you ever opened up a survey and observed a property with 47 different sides? Which is the front, side and rear, is it possible to have multiple fronts or several sides? Can a property not have a rear? Sometimes surveyors can not interpret the code, but PZR will wade through the regulations and determine what is considered each of these.
  • Introduction…….. If you want to follow along this is on Page 38 of the handout under the “ALTA Standards” tab The base ALTA survey will remove the survey exception for title. A base ALTA survey will not include or provide the required information to acquire many of the title endorsements as requested by many lenders or buyers. If different the Record and Measured calls must be shown on the survey.
  • Location of Buildings (5g) is one of the 5 key items that PZR needs to Complete their zoning report and determine compliance.
  • Here is a sample of a base ALTA survey
  • Sample of a Full ALTA survey that includes most of the Optional Table A Items required to obtain the common title endorsements.
  • On Page 41 of the handout under the “ALTA Standards” tab Table A Items 16, 17 and 18 are for HUD funded loans only per the current ALTA requirements. However…..most surveyors will include these items in the survey if negotiated in the beginning of the proposal process. If they are not willing to include these Table A Items I have had luck convincing the surveyors address these items by special note. Send me an email and I will send you the special note language for your future use.
  • 80% of all states require that the surveyor set monuments at all property corners of the subject property when preparing a survey. The base ALTA requires surveyors to show ALL monuments that are Used and confirm their locations. A few states that do not require monuments to be set are CA, OR, WA, NY and NJ Even though a physical monument is not set at a particular corner in the field, it does not mean that the corner was not established.
  • Can show relationship of other parcels to the main property. Can show off-site easements and there relationship to the subject property.
  • Table A item 3 requires the surveyor to determine which flood zone The property lies in.
  • There are two separate flood zone categories of interest and they are “ Non-Special Flood Hazard Areas” and “Special Flood Hazard Areas” It is a very good idea to either have the surveyor determine the flood zone of the property before the field work begins or have the surveyor prepare an additional proposal amount to complete the elevation certificate if the property lies within a special flood hazard area at the time the field work is being completed for the ALTA survey. This will provide all parties involved in the transaction the knowledge that elevation certificate will be require to help relieve the some of the cost associated with flood insurance. Another factor by doing this at the beginning of the proposal process is the associated survey fees for a returned trip to the site to complete an elevation certificate. This will save your client money and in turn keep for having a delayed closing waiting for the resolution of the elevation certificate. Current FEMA Elevation Certificate on Page 61 of handout under the “Flood Hazards” tab. FEMA is releasing a new elevation certificate next year.
  • Another key item for PZR to determine zoning compliance for items like Floor Area Ratio, Density Ratio and Parking Requirements. This is not an additional cost to the survey since most states require the calculated area to be shown on the face of the survey.
  • RED FLAG – if the property that is involved in the transaction is vacant land you might want to ask your client: “Is the property being developed in the near future?” The reason for this is the related survey cost and time for returning to the site at a later date to acquire the needed information for the design process. This will save your client a large amount of money to have this included in the ALTA survey if they plan to develop the property soon after purchase.
  • This item is not needed for PZR to complete the zoning report but it nice to confirm everyone is same page. The 2005 ALTA Requirements no longer require the surveyor to plot setbacks on the face of the survey since surveyors can not interpret zoning laws and ordinances. Many surveyors will plot the setbacks because of their knowledge of the local zoning code.
  • Not required for PZR to complete a zoning report.
  • Table A – Item 7(b)(1) is needed for PZR to determine compliance to the bulk and density requirements. Table A – Item 7(b)(2) is normally not required on surveys since the meaning may vary by jurisdiction and would almost certainly require surveyors to be provided access to the interior of the building to measure all rooms. Gross Floor Area is used by PZR to complete the zoning report but in most cases is obtained from the rent rolls or other plans.
  • David interjects
  • Table A – Item 7(b)(3) is normally not shown on surveys unless specifically requested. These additional areas to be calculated must be provided to the surveyor. Be very specific on the directions of the area to be measured. Most of these areas can be scaled from the survey at a later date.
  • Surveyor should specify where the height of the building was measured on the face of the survey.
  • Look at the different variations of the “Maximum Building Height Definitions” shown. No surveyor has ever measured to the Average between the Ridge and Peak as shown on the Hip Roof example.
  • See above list of notes
  • 5 th and final item for PZR to complete the zoning report and determine compliance of the parking requirements. When the subject property has a parking garage either above or below ground the survey will only show those parking spaces that are on the surface of the bird’s eye view. The total parking counts however should include all of the striped parking spaces of the entire parking structure/area. If the property does include a parking structure and you are aware of this fact it is always a good idea to bring this up to the surveyor.
  • David interjects
  • The location of all Visible evidence of the utilities servicing the subject property shall be shown. This is included on most surveys and will meet many lender’s requirements.
  • Most surveyors will show the underground utilities per the provided plans or utility atlas (only when available or provided to them). Since 9/11 – Utility companies and Municipal offices will not provide atlas or utility locations. Making it very tough to complete this Table A Item. Most states have a “One Call System” that will flag the underground utilities on site but this can take several weeks to accomplish in some areas. In certain areas these One Call Systems will not visit the site unless your are digging. We dig………small holes. It works sometimes. When requiring Table A – Item 11(b) you need to understand that this item is mainly used for site development. This Table A Item can become very costly and extremely time consuming in some states to include in on ALTA surveys and if the site does not have any future plans for construction or improvement it would be wise to waive this requirement. Most lenders or lender’s counsel will agree that this item is not required when it is explained to them in detail.
  • Table A – Item 12 is not requested in most cases. Usually covered by a Fannie Mae/Freddie Mac surveyor’s certificate language.
  • Be careful when you are requesting this item because of the possible additional cost. If the subject property is part of an industrial park or commercial subdivision plat ask for adjoiners to be shown on the survey. But if the subject property is a 1200 foot shopping center abutting a residential subdivision there is no reason to ask for 20 to 30 property owners listed on the survey. The plat name, recording information and lot numbers is acceptable and will help keep the cost down.
  • This can save your client large amounts of money on large area surveys. The use of an aerial photo on an industrial property is a great tool in certain cases (To give you some idea of the savings that can be expected going this route. We recently did a very large paper mill that the lowest proposal amount that I received for a conventional ALTA survey was $295,000 and we did an ALTA using a recent aerial photo to show all of the improvements for right around $60,000.) The boundary is still field verified and all easements are still plotted and all areas of potential encroachment are located.
  • Table A Items 16, 17 and 18 are for HUD funded loans only per the current ALTA requirements. However…..most surveyors will include these items in the survey if negotiated in the beginning of the proposal process. If they are not willing to include these Table A Items
  • Table A Items 16, 17 and 18 are for HUD funded loans only per the current ALTA requirements. However…..most surveyors will include these items in the survey if negotiated in the beginning of the proposal process. If they are not willing to include these Table A Items
  • Table A Items 16, 17 and 18 are for HUD funded loans only per the current ALTA requirements. However…..most surveyors will include these items in the survey if negotiated in the beginning of the proposal process. If they are not willing to include these Table A Items

Transcript

  • 1.
    • ZONING DUE DILIGENCE
    • FOR COMMERCIAL REAL
    • ESTATE TRANSACTIONS
    • OR
    • “ HOW NOT TO GET ZONED OUT ON YOUR NEXT DEAL”
    • Presented by
    • David K. Anderson, President
    • The Planning &
    • Zoning Resource Corp.
  • 2. SEMINAR OBJECTIVES
    • Understand the Risks Associated with Zoning Noncompliance
    • Understand the Role of Zoning in Real Property Transactions
    • Define and Understand Zoning Conformance Status
    • Zoning Analysis and the Land Title Survey
    • The PZR Report ®
  • 3. Analyzing the Risk Associated with Your Property
    • Can you rebuild your property in the event of casualty?
    • If you have to meet current Code in the event of destruction, what can you rebuild? How does it affect the financial viability of your property?
    • If your property is in violation, is it likely the municipality will enforce action?
    • What steps need to be taken to protect your interest?
  • 4. The Role of Zoning Due Diligence as to Risk in Financing and Acquisitions
      • Analyzing the Risk Associated with Your Property
      • 3.0 & 3.1 Zoning Endorsements
        • What is a Zoning Endorsement?
        • What states do not issue Zoning Endorsements?
      • Law and Ordinance Coverage
        • What is Law & Ordinance Coverage?
  • 5.                        
  • 6. The Role of Zoning
    • Zoning is the mechanism municipalities use to control growth and development, minimize over-crowding and land use conflicts.
    • Tells property owners what and how they can and cannot build on their land.
    • Court cases have shown that municipalities have both a responsibility and a right to protect the public welfare by placing limits on the uses of private property.
    • Village of Euclid v. Ambler Realty Co. – Supreme Court Case decided in part by the common law nuisance doctrine.
  • 7. The Effect of Zoning on “Pre-existing” Properties
    • Pre-existing uses and structures required legislative remedy.
    • A building in existence at the time a new zoning law is adopted is said to be “grand-fathered” or “legally nonconforming” and cannot be declared “nonconforming” or in violation.
    • If the legally nonconforming structure is destroyed beyond the threshold set forth in the Code, the owner may be allowed to rebuild only in accordance with present zoning laws.
  • 8. Terms Related to Zoning Conformance Status
    • Legal Conforming
    • Legal Nonconforming
    • Nonconforming
  • 9. Conformance Status - Legal Conforming
    • T he project meets all zoning district use, area, setback, height, density, and parking requirements according to the most recent zoning ordinance or land use requirements in your jurisdiction.
    • The (legal) nonconforming Rebuildability clause will not apply because your project is legal and has 100% right to rebuild in the event of any percentage of destruction.
  • 10. Conformance Status - Legal Nonconforming
    • The project was conforming at the time of construction but due to changes in the zoning ordinance, the governing jurisdiction, or zoning designation, the project is no longer conforming.
    • Jurisdictions have different rules governing legal nonconforming projects. Some allow 100% rebuild in the event of destruction while others require Planning Commission approval to rebuild, regardless of the percentage of destruction.
    • All are subject to the Nonconforming Rebuildability Clause of the zoning ordinance as they have been granted certain legal protections for rebuild.
  • 11. What Causes a Property to become “Legally Nonconforming”
    • Built Prior to the Establishment of the Zoning Code
    • Changes in the Zoning Code Over Time
    • Annexation from one jurisdiction to another
    • Subdivision of the Property
    • Condemnation Proceedings (often affects building and parking setbacks)
    • Rezoning of the Property
  • 12. Examples of a “Rebuild Clause”
    • According to the City of Ann Arbor Zoning Ordinance Section 5:87, “A nonconforming structure shall not be replaced after damage or destruction of the nonconforming structure if the estimated expense of reconstruction exceeds 75% of the appraised value, as determined by the building official, of the entire building or structure, exclusive of foundations.”
    • Per Section 17.64.040.B.4, (City of Rochelle, IL) “In the event any non-conforming structure is damaged or destroyed, by any means, to the extent of more than 50% of the cost of replacement of the structure new, such structure shall not be restored unless it and the use thereof shall thereafter conform to all regulations of the zoning district in which it is located.”
    • Per Section 165-153 of the Frederick County, VA Code: If a legally nonconforming use or structure is destroyed or damaged in any manner, it may be repaired or restored, provided any such repair or restoration is completed within 12 months from the date the legally nonconforming use or structure was destroyed or damaged.
  • 13. Interpreting the Nonconforming Clause in the Zoning Ordinance
    • Nonconforming Use and/or Nonconforming Structure
    • – Important to determine whether the same Rebuild Clause is in affect dependant on a “use” question as opposed to a “structure” question
    • Percentage of Destruction
    • – Sometimes difficult to quantify a dollar number to apply to the % of casualty.
  • 14. Legal Nonconforming Buffer Yards - This Florida café has enjoyed patio seating for years, but current Code now requires a buffer between the property line and any improvements. In the event of destruction, the restaurant will have to provide a 30 foot buffer, resulting in lost seating area.
  • 15. Legal Nonconforming Setbacks and Parking – This AZ Hospital was built in the County and later annexed in the City. Differences in Code requirements between the two jurisdictions caused setback and parking deficiencies.
  • 16. Legal Nonconforming to Height - This Multi-Family Complex was built prior to changes in the Zoning Code, which lowered the allowable building height from 3 Stories to 2 Stories.
  • 17. Conformance Status - Nonconforming
    • The project does not conform to current zoning requirements, and did not conform to the requirements in place at the time of construction.
    • In the event of destruction of any percentage or value, the project will required to be re-constructed according to the requirements of the current zoning ordinance.
    • The Nonconforming Rebuildability Clause of the zoning ordinance will not apply to a nonconforming project because the site does not have a legal status.
  • 18. What Will Cause My Property to Become “Nonconforming”
    • A Change of Use (retail to restaurant), without Approvals, which Requires Additional Parking
    • Illegal Use (retail in residence)
    • Re-striping of the Parking Lot which Causes Spaces to be Lost
    • Removal of Landscaping to Accommodate Additional Parking or Structures
    • Conversion of Apartment, Hotel or Nursing Home Units that Exceed the Total Number Approved at the Time of Construction
    • A Structure Built Closer to the Property Line than What was Originally Approved.
    • Construction Error
  • 19. Resort Hotel in Michigan – Nonconforming to Parking Approved w/parking to be constructed on adjoining lot also owned by the Owner, spaces never built, City never noticed, C.O. issued, Owner sold the land.                                                                                                                                                                        
  • 20. Assisted Living Center in AZ Nonconforming to Density– Approved for 85 Beds, C.O.’d for 85 Beds, now has 95 Beds by converting other space which was never applied for or approved
  • 21. Multi-Family Site in GA – Nonconforming to Density and Open Space Approved and developed on 30 Acres, owner sold 10 acres of unimproved land which caused density, open space and landscaping problems not easily cured
  • 22. What Are My Remedies if the Project is Nonconforming?
    • Fix the Problem
    • - Stripe more spaces
    • - Move the encroaching accessory building
    • Apply for a Variance or Special Use Permit
    • Draw up a Reciprocal Parking Agreement with the Adjoiner
    • Purchase Land from the Adjoiner
    • Apply for a Change in the Zoning District
  • 23. Analyzing the Risk Associated with Your Property
    • Can you rebuild your property in the event of casualty?
    • If you have to meet current Code in the event of destruction, what can you rebuild? How does it affect the financial viability of your property?
    • If your property is in violation, is it likely the municipality will enforce action?
    • What steps need to be taken to protect your interest?
  • 24. What is a Zoning Endorsement?
    • 3.0 Zoning Endorsement- This endorsement to the Loan or Owner’s Policy provides insurance of the applicable zoning classification and authorized use of the land. It is designed for issuance on unimproved property.
    • 3.1 Zoning Endorsement - This endorsement to the Loan or Owner’s Policy is designed for issuance on improved property. Like the 3.0, this Endorsement insures (1) the zoning classification, and (2) authorized uses under that classification. In addition, this Endorsement insures against a final court order prohibiting the present structure, and requiring removal or alteration of the present structure, because of violation of the zoning ordinance as to (1) area, width or depth of the land as a building site, (2) floor space area of the structure, (3) setback of the structure, (4) height of the structure, or (5) number of parking spaces.
    • Important to note that some states do not issue Zoning Endorsements or are limited in scope, i.e., Texas, Florida, New York, New Mexico
  • 25. Example 3.1 Endorsement
    • ALTA Zoning-Completed Structure Endorsement 3.1
    • POLICY NUMBER __________
    • ISSUED BY:
    • 1. The Company insures the insured against loss or damage sustained by reason of any incorrectness in the assurance that, at Date of Policy:
    • (a) According to applicable zoning ordinances and amendments thereto, the land is classified Zone __________.
    • (b) The following use or uses are allowed under that classification subject to compliance with any conditions, restrictions, or requirements contained in the zoning ordinances and amendments thereto, including but not limited to the securing of necessary consents or authorizations as a prerequisite to the use or uses:
    • 2. The Company further insures against loss or damage arising from a final decree of a court of competent jurisdiction
    • (a) prohibiting the use of the land, with any structure presently located thereon, as specified in paragraph 1(b); or
    • (b) requiring the removal or alteration of the structure on the basis that, at Date of Policy, the ordinances and amendments thereto have been violated with respect to any of the following matters:
    • (i) Area, width or depth of the land as a building site for the structure;
    • (ii) Floor space area of the structure;
    • (iii) Setback of the structure from the property lines of the land;
    • (iv) Height of the structure, or
    • (v) Number of Parking Spaces
    • There shall be no liability under this endorsement based on the invalidity of the ordinances and amendments thereto until after a final decree of a court of competent jurisdiction adjudicating the invalidity, the effect of which is to prohibit the use or uses.
    • Loss or damage as to the matters insured against by this endorsement shall not include loss or damage sustained or incurred by reason of the refusal of any person to purchase, lease or lend money on the estate or interest covered by this policy.
    • This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof.
    • Signed under seal for the Company, but this endorsement is to be valid only when it bears an authorized countersignature.
  • 26. Law and Ordinance Coverage
    • Three Separate Coverages:
    • Coverage A: Building Ordinance – Covers the value of the undamaged portion of the building that must be demolished should the casualty exceed the % threshold set by the Rebuildability Clause of the Code
    • Coverage B: Demolition Cost – Covers the cost to actually demolish the undamaged portion of the structure once it is declared a total loss
    • Coverage C: Increased Cost of Coverage – provides the additional cost sustained in building to new code requirements, i.e., windstorm in Florida or earthquake in California
  • 27. Site Criteria analyzed for conformance prior to the issuance of Zoning Endorsements and/or Law and Ordinance Coverage
    • Is the Property in
    • Conformance with:
      • Use – Survey not required
      • Survey Required for Review:
      • Setbacks
      • Height
      • Density
      • Open Space/Lot Coverage
      • Landscape Buffers
      • Parking
  • 28. Use of the Property
    • Permitted by Right
    • Permitted by Conditional or Special Use Permits
      • Drive-Thru Banks, etc.
      • Convenient Stores
    • Permitted as an Accessory Use
      • Manager’s residence within a mini-warehouse
  • 29. 2005 ALTA Survey Requirements for Zoning Analysis
    • A current survey which reflects the following:
      • Building improvements (Base ALTA 5g)
  • 30. Setbacks – Generally, the Minimum Horizontal Distance Between the Line of the Building or Structure and the Property Line (some municipalities apply maximum distances as well)
    • Front or Street Setbacks
    • Side Setbacks
    • Rear Setbacks
    • Corner Side Setbacks
    • Parking Setbacks
    • Landscape Setbacks
    • Accessory Structures
    • Distance between Buildings
  • 31. What is included in an Base ALTA Survey?
    • Dimensions of Property (5a)
    • All elements of each curve, if any (5a)
    • Difference in Record & Measured dimensions (5b)
    • Evidence of access to public streets (5c)
    • Names and recording data of adjoining landowners of non-platted lands (5d)
    • Recording Data of subdivision plats if adjoining lands are platted.
    • Contiguity, gores and overlaps along the exterior boundaries (5d)
  • 32. What is a Base ALTA? cont’d
    • Character of all evidence of possession (fences, walls hedges, etc) (5f)
    • Location of Buildings (5g)
    • All record easements as provided to surveyor (5h)
    • Observable Evidence of Easements (5h)
    • ALL visible improvements within 5 feet of boundary (5i)
    • Driveways across property (5j)
    • Required ALTA certificate (8)
  • 33.  
  • 34.  
  • 35. What are the optional Table A items?
    • The items of Table A need to be negotiated between the surveyor and client. It may be necessary for the surveyor to qualify or expand upon the description of these items, e.g., in reference to Item 6, there may be a need for an interpretation of a restriction. The surveyor cannot make a certification on the basis of an interpretation or opinion of another party .
    • Items 16, 17 and 18 are only for use on projects for the U.S. Department of Housing and Urban Development (HUD).
  • 36. 1. Monuments
    • All ALTA surveys must determine where the property corner lies, but monuments are not required to be set in some states
    • Monuments help locate property boundaries in the future
    • Not all states require monuments to be set and may incur additional costs.
    • Some corners cannot be set and will require offset or reference monuments
  • 37. 2. Vicinity Map
    • Orients to major intersections
    • Can show off site easements
  • 38. 3. Flood Zone Statement
    • Determines if Flood Insurance is required
    • References the FEMA map
  • 39. Flood Hazard Zones
    • FEMA Flood Insurance Rate Map (FIRM)
      • Depicts Special Flood Hazard Areas (SFHA)
      • 100 year Flood?
    • Zone B, C, D and X (Non-Special Flood Hazard Area)
      • Areas of moderate or minimal hazard
      • Flood insurance is available in participating communities but is not required
    • Zone A and V (Special Flood Hazard Areas)
      • Subject to inundation by the 100-year flood
      • Areas where detailed studies have not been performed
      • Mandatory flood insurance purchase requirements apply
    • Zone AE, AO and A1-A30 (Special Flood Hazard Areas)
      • Subject to inundation by the 100-year flood
      • Base flood elevations are shown within these zones
      • Mandatory flood insurance purchase requirements apply
  • 40. 2005 ALTA Survey Requirements for Zoning Analysis
    • A current survey which reflects the following:
      • Building improvements (Base ALTA 5g)
      • Total acreage (ALTA Optional Item #4)
  • 41. 4. Land Area
    • Helps determine if all of desired property is surveyed
    • Area to be determined by client
    • Usually not insurable by the title company
    • Needed to determine Bulk Density for Zoning
  • 42. 5. Contours & Elevations
    • If requested, the contours (elevations) of the property would be shown
    • NOT necessary for most transactions
    • Usually NOT requested unless construction is planned
  • 43. 6. Zoning Restrictions
    • List current setbacks (but no longer required to plot zoning setback lines)
    • List height Restrictions
    • List Floor Space Restrictions (bulk)
    • Setbacks from recorded plat (a Title but not a Zoning issue, similar to deeded setback and parking requirement)
    • Surveyors can not certify to an interpretation or opinion of another party.
  • 44. 7(a) Exterior Dimensions of Buildings
    • Without this item, buildings are only shown visually, not dimensioned
    • In some cases an overall length and width will suffice (very intricate buildings)
  • 45. 2005 ALTA Survey Requirements for Zoning Analysis
    • A current survey which reflects the following:
      • Building improvements (Base ALTA 5g)
      • Total acreage (ALTA Optional Item #4)
      • Square footage of the building footprint (ALTA Optional Item #7b(1)
  • 46. 7(b) Square Footage of:
    • If this item is checked, there are up to three (3) subcategories that should be requested
  • 47. 7(b)(1) Exterior Footprint
    • This is the area that the building occupies on the property at ground level (1 st Floor Only)
    • Used for bulk density calculations
    7(b)(2) Gross Floor Area
    • Usually obtained from rent rolls (surveyors do not typically measure the interior of buildings)
    • Used for Floor Area Ratio (FAR) calculations
  • 48. Density
    • Bulk / Density rules place limits on how much of a use/activity can be constructed on the land. The most common density rules are:
    • Lot Size per Dwelling Unit
    • Number of Units allowed per Acre of Land
    • Percentage of Building Footprint per Acre of Land
    • Floor Area Ratio: Specifies the amount of total building floor area relative to the lot size. An FAR of 2.0 means one can put a 2-story building covering the entire lot, or a 4-story building covering half the lot.
  • 49. 7 (b)(3) Other Areas
    • Landscaped area, if required by restrictive covenant
    • Areas lying within a Flood Hazard Area
    • Area lying within public or private right-of-way
    • Be specific if you check this item
  • 50. 2005 ALTA Survey Requirements for Zoning Analysis
    • A current survey which reflects the following:
      • Building improvements (Base ALTA 5g)
      • Total acreage (ALTA Optional Item #4)
      • Square footage of the building footprint (ALTA Optional Item #7b(1)
      • Height of the building/number of stories (ALTA Optional Item #7c)
  • 51. Height Limitations
    • May Be Restricted by:
    • Number of Stories
    • Height of the Structure
    • Combination of Both
    • Proximity to the Property Line
  • 52. 7(c) Height of Buildings
    • Used mainly for zoning compliance
    • Feet AND number of stories
    • Surveyor should specify where the building height was measured.
  • 53.  
  • 54. 8. Visible Improvements
    • Without Item 8, only buildings are required to be shown
    • Substantial visible improvements (in addition to Buildings) billboards, signs, parking structures, paved areas, swimming pools, etc.
    • Billboard Signs
    • Indication of use by others
  • 55. 2005 ALTA Survey Requirements for Zoning Analysis
    • A current survey which reflects the following:
      • Building improvements (Base ALTA 5g)
      • Total acreage (ALTA Optional Item #4)
      • Square footage of the building footprint (ALTA Optional Item #7b(1)
      • Height of the building/number of stories (ALTA Optional Item #7c)
      • Total number and location of parking spaces (ALTA Optional Item #9)
  • 56. 9. Parking Areas and Striping
    • Need to determine zoning compliance.
    • Parking Areas and if striped, show and striping and type (handicapped, motorcycle regular, compact) and total number of stripes.
    • Should include a total of surface spaces, and any parking garage and/or underground spaces
  • 57. Examples of Parking Requirements
    • By Specific Use (Commercial, Industrial, Office, Warehouse)
    • Per Living Unit, often by # of bedrooms
    • By Square Footage of Gross or Leasable Area
    • In Mixed Uses, by Square Footages broken down by different types of uses
    • By # of employees on the Maximum Shift
    • In Restaurants, by # of Seats and the Square Feet of Patron Area, or by linear feet of the bar
    • The # of vehicles used by the tenant in the operation of the business
  • 58. 10. Access to Public Road
    • Survey to show curb cuts, driveways, access to and from waters adjoining the property (boat slips, piers and docks)
    • Allows title company to insure access
    • Survey should state Direct or Indirect access.
    • Physical access vs. legal access
  • 59. 11. Location of Utilities
    • Confirms that property has access to public utilities
    • Confirms that visible utilities enter or exit though public easements or rights of way
    • Is there a need for appurtenant easement across others?
    • Indication of unrecorded easements
    • Two subcategories of Item 11
  • 60. 11 (a) Observed Evidence.
    • Only visible evidence of utilities:
    • Manholes, power poles, transformers, fire hydrants, drain inlets, etc.
    • For example, location of sewer lines between manholes will not be shown.
  • 61. 11 (b) Underground Utilities from Observed Evidence, Utility Markings & Utility Plans.
    • Plans provided by client, utility companies and other appropriate sources.
    • For example, city utility plans (WHEN AVAILABLE)
    • This does not require surveyor to utilize the “One Call” system
  • 62. 12. Governmental Agency Requirements.
    • HUD Requirements
    • Additional FANNIE MAE Requirements not otherwise covered in Table A
    • Usually not requested
  • 63. 13. Names of Adjoiners / Platted.
    • Non-Platted adjoiners are already required by base ALTA.
    • Adjoining deed information or Tax Records need to be provided by client or title company.
    • Needs to be negotiated in original survey order.
  • 64. 14. Distance to Nearest Intersecting Street
    • Specific street intersection request to be specified by client, for example if you need to know how far the site is from a certain Interstate.
  • 65. 15. Use of Orthophotography
    • Useful in certain situations where large areas are involved without many improvements.
    • Boundary is done using traditional methods.
    • Field location of Improvements varies with each situation.
    • Potential encroachments are field verified.
  • 66. 16. Earth Moving and Construction within recent months
    • Evidence of possible lien rights
    • For use on Department of Housing and Urban Development (HUD) projects only
  • 67. 17. Changes in Street Rights-of-Way or recent construction
    • Completed OR proposed
    • Indicates possible additional right-of-way takings
    • Observable evidence of recent street or sidewalk construction or repair
    • Documents are typically not of record
    • For use on Department of Housing and Urban Development (HUD) projects only
  • 68. 18. Solid Waste Dump
    • Only visible evidence can be noted or located
    • For use on Department of Housing and Urban Development (HUD) projects only
  • 69. 19. Other
    • Client specific requests
    • Usually not requested
  • 70. Information Needed To Prepare an ALTA Land Title Survey or PZR REPORT ®
    • Specific street addresses
    • Specific “use” information
    • Tax Parcel
    • ID #
    • Legal Description
    • As-Built Survey
    • Available Site Plans
    • Rent Roll / Unit Mix, with gross floor area
    • Old Zoning Letters, C.O.’s and other Approval Documents
    • Date of Construction
  • 71. ANY QUESTIONS?