As a real estate owner, understanding local zoning laws and compliance is crucial. However, these laws can change over time, and what was allowed in the past may not be permitted today. In this article, we will delve into the significance of zoning in real estate and explore situations where properties may be exempt from conforming to current zoning regulations.
Why is Zoning Important in Real Estate?
Zoning refers to laws that regulate how land can be utilized. Each town or village may have its own unique zoning laws. For example, zoning laws in the Town of Hempstead might differ from those in the Town of Oyster Bay.
The purpose of zoning laws is to establish a systematic development plan for neighborhoods by determining the allowable use of each parcel. These restrictions are in place to protect property values. Factors like building height, density, design, and use in specific areas contribute to the classification of zoning.
However, there are instances where properties can exist despite conflicting with current zoning laws. This exception is known as a non-conforming use.
What is a Non-Conforming Use?
A non-conforming use, also referred to as a grandfather clause, permits the continued use of real estate that was legally established and maintained at the time of its construction. The objective is to allow property owners to continue benefiting from their investments.
Rather than immediately prohibiting these uses, zoning ordinances outline conditions for the ongoing existence of non-conforming uses.
Common Conditions & Codes of a Non-Conforming Use
While conditions may vary based on state and local laws, some typical conditions include:
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Prohibition or Regulation of Expansion: Non-conforming uses are generally restricted from expanding, enlarging, or intensifying. Routine maintenance and minor repairs are typically allowed to prevent the properties from deteriorating. However, significant renovations that substantially increase the property's size are not permitted.
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Destruction: In cases where a non-conforming use structure is partially or fully destroyed, the city authorities will assess whether rebuilding will be allowed, taking into account its non-conforming status.
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Abandonment: If a non-conforming use is abandoned, resumption of the previous use may be prohibited. Most laws state that an abandonment period of six months to a year creates a presumption of abandonment. However, in court, evidence of "intent to abandon" is usually required.
Conclusion
Zoning plays a vital role in the real estate industry. Its primary objective is to maintain an organized development plan and safeguard property values for residents. It's crucial to understand that zoning laws can change over time and how these changes may impact the use of your commercial property.
Have questions about commercial real estate? Get in touch with our team at American Investment Properties. With over 20 years of experience in Long Island commercial real estate, we are here to assist you!
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