©2011 Cengage Learning
California Real Estate
Principles
Chapter 12
Land-use Planning,
Subdivisions, Fair Housing,
and Other Public Controls
©2011 Cengage Learning
Chapter 12
1.
2.
3.
4.
5.
Describe the main goals of a community
general plan.
Explain the difference between government use
of police power and eminent domain.
List the major characteristics of the Subdivision
Map Act and the Subdivided Lands Act
Describe a common interest development and
discuss the differences between a condominium
and a planned unit development.
List the major fair housing laws that prohibit
discrimination in the selling or renting of real
estate.
©2011 Cengage Learning
Government Land Planning
& Other Public Controls
Too Stringent?
Or
Too Lenient?
PRIVATE DEED RESTRICTIONS (CC&R’s)
PUBLIC LAND-USE CONTROLS
POLICE POWER
Regulate without compensation
Zoning *
Building & Health Codes
Subdivision Regulations
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* Rent Control
* Environment Regulations
General Plan
Every 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 use
 Congestion and circulation (traffic and water)
 Housing at all income levels
 Conservation of natural resources
 Open space and future growth
 Noise problems
 Safety from fire, seismic (earthquake) and geological
hazards
 Public utilities
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Zoning
Zoning - to preserve property values
• Example of typical use:
–A – Agricultural
–I – Industrial
–C – Commercial
–R – Residential
• 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
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Development Tools
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.
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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
TERMS
Development 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 Changes
Non-conforming – Allows for current property use to be
grandfathered in when subsequent zoning changes
differ from existing property usage.
Variance- ONE individual owner parcel change
Conditional 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 Codes
 Minimum 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 Share
12 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
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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
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
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use the entire area.

Condo vs. PUD
Condominium
5
4
3
2
1
6
7
8
9
10
High Rise
Building
(Small Lot)
P.U.D.
Common
Open
Space
Low Rise
Buildings
(More Land)
A PUD is the same as a condo, except the
lot is owned fee simple.
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Definitions
Community Apartment Project
Owner has individual interest in the land
Owner 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
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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 concern
Environmental Impact Report (EIR) = Concern
©2011 Cengage Learning
THE CALIFORNIA FAIR EMPLOYMENT
AND HOUSING ACT (FEHA)
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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
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
Anti-discrimination in business (including real
estate)
CA Fair Housing Act (Rumford Act)
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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
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
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)
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Violations filed with HUD
Enforced by HUD & U.W. Attorney General
Definitions:
•Blockbusting
•Redlining
•Steering
©2011 Cengage Learning
Review Quiz Chapter 12
1.
Rent controls, building moratoriums, and
coastal controls are examples of government
use of:
(a) police power
(b) eminent domain
(c) zoning
(d) subdivision regulation
©2011 Cengage Learning
Review Quiz Chapter 12
2. 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
©2011 Cengage Learning
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 12
4. 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 12
6. 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
©2011 Cengage Learning
Review Quiz Chapter 12
8. 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 12
10. 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
©2011 Cengage Learning
Answers to Review Quiz Chapter 12
1.
A
6. C
2.
B
7. D
3.
D
8. C
4.
B
9. D
5.
B
10. C
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