Level 6

Subdivision Development: Start-Up Stage

AKA disposition stage when actual construction starts. Infrastructure is put into place: Roads are paved, and water, gas, and electricity are routed to lots where homes will go. The lots are now ready to be disposed of (sold) and are ready for the new owners to begin building their homes.

What Does Zoning Regulate?

- How land is Used - Minimum lot size - Max building height -Kinds of structures that are allowed - Setback - Density - Parking spaces - How air rights can be transferred - How natural resources can be used in the area - How much land is set aside for public use and infrastructure - Historic preservation and landmark sites - Limits on accessory buildings - Lot coverage

Fifth Amendment

... Nor shall private property be taken for public use, without just compensation.

How to Create a Master Plan

1. Research (surveys, demographics, etc.) 2. Infrastructure Needs (roads/schools/green space) 3. Housing Stock, Transit, Historic Preservation 4. Growth Patterns

There are two parts to creating zoning ordinances.

1. making a zoning map 2. outlining the permitted use

Every plan must be updated at least every

10 years

a county's tax rate is 2.5% = _____ mills

25

Pennsylvania counties are divided into ___ different classes based on population

9 Each class of county has slightly different rules, but second class A through eighth class counties are governed by the Consolidated County Assessment law.

The primary purpose of the planning department or commission is to

Create, present, and administer a master plan.

Takeaways from Kelo

Eminent domain can be used more broadly than originally legally thought. Kelo's supporters, including the NAACP and the AARP, were concerned this would make low-income neighborhoods and senior housing vulnerable to developers. The laws about real estate are always being reinterpreted. Listen to Suzette.

Condemnation vs. Eminent Domain

Eminent domain is the right the government has to take property, and condemnation is the process by which they do it.

Before offering lots in a subdivision for sale, a subdivider must:

File a plat map with the municipality Get all necessary regulatory approvals

Getting the Plan Approved: Voting on the Plan

Finally, the governing body votes to adopt or reject the plan. If it's adopted, they must send it to the county within 30 days

Getting the Plan Approved

First, they submit the plan to the county planning commission, the planning commissions of every neighboring municipality, and the school districts affected for public comment. This has to happen 45 days before a hearing

Plat Patterns (I Call Them Platterns)

Gridiron Curvilinear

PA Homestead Exclusion

Homesteads or farmsteads that are primary residences are eligible for a tax exclusion in PA

Subdivision Timeline

Identification Initial Planning Stage City Review Developer makes modifications City approval Final planning stage Final municipal approval Purchasing the property Start-up stage Disposal

Optional Elements for Master Plan

Identification of growth and development areas An energy conservation plan

The MPC requires COUNTY plans must identify the following

Land uses as they relate to important natural resources and utilization of existing minerals Current and proposed land uses which have regional impact and significance A plan for preservation of prime agland that encourages compatibility of land use regulations with agricultural operations A plan for historic preservation

Neighborhood improvement districts in PA are regulated by

Neighborhood Improvement District Act

4 Basic types of Public land-use Controls

P is for Police Power E is for Eminent Domain T is for Taxation E is for Escheat

Examples of exactions include:

Setting aside land for public use or to offset the environmental impact of new development Setting aside land (or money) for roads Paying transportation impact fees (fees that cover the cost of road improvement or public transportation to the new development)

Subdivision Rules in PA

Subdivision planning rules in Pennsylvania are set out in the state's Municipalities Planning Code, though local governments can create additional laws that govern subdivision creation.

Subdivision Regulations vs. Deed Restrictions

Subdivision regulations are laws passed by municipal governments, while deed restrictions are put in place by private citizens, either developers or homeowners.

The Final Sign-Off on Code:

The Certificate of Occupancy

City vs. County Plans

The MPC requires that cities and counties coordinate their planning so that they don't end up with two different plans for the same space encourages neighboring cities/counties to be consistent with their plans, so that the plans work together instead of against each other.

Subdivision Development: City Review and Approval

The city ensures that the plan adheres to the overall urban plan and subdivision regulations of the city. If modifications or changes are needed, the developer is notified and allowed to submit changes as required by the city.

Why Plats Matter

The layout of a housing community, as established in a plat, influences the accessibility of recreational space as well as the general functionality and aesthetic appeal of the development. A subdivider can create more space for parks and other amenities by varying the street patterns and clustering houses.

Getting the Plan Approved: Enacting the Plan

The plan is enacted through these zoning laws and subdivision regulations

Requirements to Exercise Eminent Domain

The property being condemned must be used for and/or benefit the public. The owner of the property being condemned must be fairly compensated.

Police Power: Application of Rules

This idea says that when there is a difference between a government restriction and a private restriction, the strictest restriction will be applied.

Disabled Veteran Exemption

Veterans disabled as a result of their service receive a property tax exemption in PA. The amount of the exemption will vary by county.

4 main types of land-use controls that fall under the scope of police power:

Zoning Building codes Subdivision regulations Application of rules

Public Land-Use Controls: Taxation

a charge on real estate that is used to pay for services provided by the government.

In Pennsylvania, all homeowners pay property taxes to three taxing authorities:

a county, a municipality, and a school district

According to Subdivision and Land Development in Pennsylvania, and exaction is:

a development condition imposed on a parcel of land that requires the developer to mitigate anticipated negative impacts of the development. The Pennsylvania legislature has provided limited authority to impose exactions on development.

Kelo v. City of New London, 2005

a landmark Supreme Court case from 2005 radically expanded the definition of what qualifies as "public use" when it ruled in favor of New London, CT

The Pennsylvania Municipalities Planning Code (MPC)

a law, originally passed in 1968, to empower municipalities to do their own planning, zoning, and other land-use management gives cities and towns the right to form either a planning commission, a planning department, or both three-to-nine-member bodies made up of appointed community members who serve four-year terms

building permit

a legal document from a local authority that authorizes a construction or remodeling project.

Probate

a process by which courts determine and grant the appropriate ownership interest of an estate to creditors, taxing entities, and heirs of an owner who dies intestate

To qualify for PA lottery rebates

a renter or homeowner must make less than $35,000 a year (for homeowners) or $15,000 a year (for renters) Older than 65 Older than 50, and a widow or widower Disabled, and over 18

master plan

a written document created by the local planning board to guide the future growth and development of a community It is developed by a city, village, town, or county to provide a blueprint for sustainable growth, and balances social, economic, environmental, and aesthetic needs

Property taxes are

ad valorem taxes, meaning they're based on the value of the property being taxed. That value is determined by the process of assessment.

Laws of Descent and Distribution in PA

after paying off any debts or liens, property goes to a surviving spouse and/or children, then parents, then siblings, then grandparents, then other relatives

Subdivision Development: Final Planning Stage

all the initial planning has met approval and now any loose ends are tied up, all the details are finalized, and the final subdivision plat is turned over to whichever authority has jurisdiction for final approval

Tax District

area in which a taxing entity is authorized by the government to levy taxes

Getting the Plan Approved: The Hearings

at least 45 days after submitting the plan, both the planning body (the planning department or commission) and the governing body (the city council, for example) must have a public hearing about the plan Throughout this process, changes can be made to the plan based on feedback from stakeholders

Equalization

attempts to ensure that everyone is being assessed in the same way, and paying an equitable amount of property tax. done using a CLR (common level ratio)

a Master Plan for planning deparment/commission

balances the area's social and economic needs against its environmental and aesthetic ones. Zoning regulations are based off of the priorities set forth in the plan.

Subdivision Development: Initial Planning Stage

before any land is purchased or any construction begins on a subdivision, a developer who has located undeveloped acreage that is for sale has the land surveyed and a plat made. The developer then plans out the community on paper (indicating roads, schools, and parks).

Once a building has been completed and an inspector verifies it is up to code, what is issued to indicate it's ready to be used?

certificate of occupancy

Upon completion of construction, an inspector checks the building one last time, and if it is found to be compliant, the inspector issues a

certificate of occupancy

To eminently domain a property, the government must sue the owner in what's called a

condemnation suit

The Pennsylvania Construction Code Act

created a uniform construction code (UCC) for builders in the state. Essentially, Pennsylvania formally adopted an international set of building codes developed by the International Code Council.

Zoning...

creates different zones with different uses dictates the acceptable uses of a parcel of land

Police Power: Subdivision Regulations

describe specifically how subdivisions can be created, rules for how land can be parceled out, how dense they can be, and other zoning-adjacent issues. can also require subdividers to provide certain public utilities and right-of-ways, roads, and other infrastructure items. Lastly, they can dictate tax requirements for subdivisions to pay for the services they use.

Dying Intestate

dying without a will your estate will be settled by a slow, expensive process called probate

After equalization, the county or taxing authority's __________ will be applied.

established predetermined ratio (EPR)

Gridiron Plat Pattern

evolved from the rectangular survey system. It features large lots, wide streets, and some limited-use service alleys While the gridiron system makes a subdivision easy to navigate, its drawbacks include most homes being located on or near busy streets and a lack of open space

Public land-use regulation takes many forms. It is mostly carried out through laws passed at the

federal, state, or local level, including zoning laws, building code, subdivision regulations, and environmental legislation.

Subdivision Regulations...

has to do with creating a new subdivision can be enacted as a deed restriction

When you buy a lottery ticket in Pennsylvania, part of the money you spend goes to

helping senior and disabled Pennsylvanians with their rent or property taxes

Special Assessment in PA

homeowners must be notified 30 days in advance if a special assessment will be applied to their property. Any assessment payments that are more than 60 days past due will be applied (with any interest) as a lien on the delinquent property.

An EPR determines

how much of the assessed value is taxable partial assessment

Curvilinear Plat Pattern

integrates major feeder roads with smaller streets and cul-de-sac this approach generally minimizes service alleys and the more complex road patterns can be difficult to navigate provides for quieter and safer neighborhoods.

For eminent domain to be legal,

land owners must be compensated

zoning power is delegated to

local government

According to MPC, In preparing a comprehensive plan, a planning agency must

make surveys, studies, and analyses of housing, demographic and economic characteristics, land use, transportation, community facilities, natural/historic/ cultural resources, and prospects for future growth

Just Compensation

means a fair value for the property that has been taken

In PA, taxes are expressed in

mills A mill is 1/1000 of a dollar, or $0.001.

The most common uses of property taken by eminent domain are for

railroads, public utilities, and highways.

Building Code...

rules for the inside of buildings deals with safety instead of urban planning

Laws of Descent and Distribution

set of laws that sets out the process of passing an estate to heirs when the owner dies intestate.

Police Power: Building Codes

sets of regulations pertaining to building design, materials, safety, sanitation, and structure concern a building's structural soundness and its basic cleanliness — not its aesthetics or appearance. enforced by building permits

What does a master plan do for a community?

sets out their urban planning goals and priorities

Application of Rules...

settles disparities between zoning regs and HOA rules the strictest rule is the one to follow

Jori lives in a subdivision. Her HOA has rules against fences taller than six feet. Her city zoning code allows 10-foot fences. How high can Jori build her fence, and why?

six feet because the strictest rule applies first

Neighborhood Improvement Districts

tax properties within the district to raise money for capital improvements, like street repair, parking upgrades, public transportation infrastructure, and other items that benefit the area. made instead of special assessments

In short, the ad valorem (property) taxes a property owner owes are based on

the area's tax rate and the property's assessed value.

The most common example of police power in real estate is

the authority to control zoning

Assessment

the determination of the value of a property for tax purposes isn't static — in most areas, homes will be reassessed every year, or every several years.

Subdivision Development: Purchasing Property

the developer may now purchase the property. Hopefully, financing has already been secured.

Police Power: Zoning

the division of land within a jurisdiction into separate districts within which uses are permitted, prohibited, or permitted with conditions. regulates the use of land. done by creating zone ordinances

full assessment

the full assessed value is taxed

Public Land-Use Controls: Police Power

the government right to regulate and restrict land use in order to protect the public. includes the power to enforce zoning and building codes.

Condemnation

the governmental act of seizing private land through exercise of eminent domain.

Public Land-Use Controls: Escheat

the legal doctrine by which a decedent's property will pass to the state without their consent if that individual dies without a will, a surviving spouse, lineal descendants, or other known heirs can also be used if a property is abandoned by the owner

According to the MPC, all plans MUST include the following:

A statement of community development objectives A plan for land use A plan to meet housing needs A plan for movement of people and goods A plan for community facilities and utilities A plan for the protection of natural and historic resources A plan for the reliable supply of water A statement of interrelationships among various plan elements which may include an estimate of environmental, economic, and social consequences Short- and long-range implementation strategies A statement that existing/proposed development is consistent with or can be buffered against that incontiguous municipalities A statement that existing/proposed development is consistent with the county comprehensive plan

What is the difference between a subdivider and a developer?

A subdivider subdivides while a developer builds structures.

Tax Rate

the percentage of the value that is taxed

subdivider

the person who creates the development and separates out the land, and a developer is the person who builds on the land and sells the homes

In direct condemnation, the government is

the plaintiff and sues a defendant-owner to take their property.

Public Land-Use Controls: Eminent Domain

the power of government to seize private property for public use The government must pay the property owner just compensation LAST RESORT

"Taking" as Defined by the Courts

the power of government to seize private property for public use defined in the "takings clause" of the Fifth Amendment

Creating a subdivision

the process of dividing up a big piece of land into small pieces of land. A subdivision is created by... wait for it... a subdivider.

Public Ownership of Land

the role of government to own and maintain public land such as streets, highways, and parks necessary so that there is land available not only for schools, government buildings, roads, and military bases, but for more enjoyable public spaces such as local parks and national forests.

A town's city council seizes Rachel's farm land to build a new power plant. They paid the cost of moving her farm equipment. Why is this not a legal act of eminent domain?

they failed to provide just compensation of the land

Tax Base

total taxable assets available in a specific area

Inverse Condemnation

when the government appropriates a private property without compensating the property owner. In order to be compensated, the owner must then sue the government

zoning ordinances

which are local laws that control how land is used and what structures can be built in a designated district. flow from the priorities outlined in a municipality's master or comprehensive plan