Meet Debbie. Single mom living in Northwest Denver. Last year three developers approach her about buying her modest 1300 SF house. They offered way more than she paid for it, enough to get her and her young children to a larger home. Debbie was excited and dreamed about moving to a new house. Than, her property got down zoned in March of last year. The developers withdrew their offers. The dream was over. Now Debbie is stuck. Her family really needs a bigger place but nobody wants to buy her house as is and Debbie has no money to remodel or build an addition.
Meet Bob. Bob is a retired consultant. Bob would like to sell his house in Wash Park and move to California. His 1400 SF residence is too small and too outdated for a modern family. For a while Bob hoped that a developer may buy his property but he is about to fall victim of down zoning as well. His new hope was building a carriage house on the alley to add equity to his property. Bob hired an architect and together they created a plan for a two story ADU (accessory dwelling unit) with 2-car garage on the main floor and apartment on the second floor. When Bob applied for a building permit he was told that carriage houses were not allowed in Denver. All Bob could build on the back portion of his lot was a garage, so that’s what he did. Bob is still fighting his battle hoping that one day he will be allowed to add a second story apartment to his garage.
The value of the property is greatly affected by the zoning laws. A change in property zoning designation can increase or decrease its value. Typically the higher the zoning the higher the property value. For most us home equity is our biggest asset. This is why when the City Planners propose a new zoning code we should pay attention because the change will touch all of us.
The proposed zoning code drastically reduces development opportunities in many Denver neighborhoods. While we all agree that a new code is necessary to control the scale of the new construction the change in the land entitlement is very concerning. The current plan is estimated to wipe down one billion dollars of equity in the City of Denver. An average property will lose 20% of its value if down zoned from R-2 to a single family dwelling.
To learn more about the new Denver code and to post your comments go to: http://www.newcodedenver.org/
I am currently reviewing the proposed Downtown Code for Nashville, TN for a group of private developers and land owners. This proposed code is a form-based code that eliminates FAR and height control plane restrictions and establishes a development density limitation based solely on building height (measured in stories). Extra bonus height is allowed for a variety of provisions, including LEED certification, work force housing, and public open space.
ReplyDeleteMetro Planning Department has been very attentive to the concerns of land owners and developers, understanding that vision means little if it prohibits implementation. There are lots of lessons being learned during this process. Stay diligent in Denver!
Greg,
ReplyDeleteThanks for your encouragement, there's more info at http://friendsofgranny.blogspot.com/
Greg,
ReplyDeleteThank you for taking time to comment. We (Denver and Nashville, you and I) should exchange notes on writing a new code. I find the process fascinating and frustrating. And so extremely important.