U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > U.S. Forums > California > Los Angeles
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 06-07-2012, 01:52 PM
 
63 posts, read 149,131 times
Reputation: 57

Advertisements

I'm currently in escrow on a condo in Santa Monica, and the appraiser noted that the land that the property is zoned in is "R2", which allows for a maximum of 1 residential unit per 1500 square feet.

This condo property is only 2 floors and is on a relatively large plot of land, and only has a density of 1 unit / 730 square feet.

According to some Santa Monica zoning ordinance, this means if the building is greater than 50% destroyed, it cannot be rebuilt to violate the zoning density. In other words it could only be rebuilt to about half the current number of units.

This is throwing a wrench in getting lending.

Has anyone ever heard of this? With all the condo sales in Santa Monica, this has had to come up before.
Reply With Quote Quick reply to this message

 
Old 06-07-2012, 05:18 PM
 
63 posts, read 149,131 times
Reputation: 57
Really? No one's run into this before?

I must have the most thorough appraiser ever.
Reply With Quote Quick reply to this message
 
Old 06-07-2012, 05:26 PM
 
Location: Tijuana Exurbs
4,114 posts, read 10,713,903 times
Reputation: 5000
Sounds like the land was down-zoned after the unit was built. The situation is what it is. You just have to deal with it.
Reply With Quote Quick reply to this message
 
Old 06-07-2012, 06:08 PM
 
63 posts, read 149,131 times
Reputation: 57
Yeah I think that is what happened. I'm just curious if any other people that have bought in Santa Monica has run into this. Most of Santa Monica south of Montana has a higher density that the current zoning permits.

Has anyone else run into this issue with lenders not liking this?

And does anyone think this is a real issue? I can't even imagine what would happen if an earthquake hits and severely damages a lot of buildings. The city of Santa Monica just kicks half their population out because of recent zoning laws? That just doesn't even sound constitutional.
Reply With Quote Quick reply to this message
 
Old 06-08-2012, 12:08 PM
jw2
 
2,028 posts, read 2,746,408 times
Reputation: 3370
This is very curious. I can see if a voluntary teardown is down then one would have to comply with the new zoning standards. But a rebuild from a fire or earthquake seems to detract from the grandfather nature of these sorts of laws.

Have you talked to the city? Maybe they have made an amendment once they realized the problem.
Reply With Quote Quick reply to this message
 
Old 06-08-2012, 04:33 PM
 
63 posts, read 149,131 times
Reputation: 57
I talked to a city planner staff member and confirmed the interpretation of the wording is correct - even if an accident or natural disaster destroys a condo building, it has to be rebuilt to conform with current zoning code.

Also, they added that "R2" zoning (almost everything between Wilshire and Montana and also some other areas in SM) actually says that the maximum density is 1 unit every 2000 square feet, or 4 units per lot, whichever is less. So at most, 4 units per lot, sometimes less. I'd say 99% of the condos in Santa Monica do not meet these requirements.

Now practically speaking, if an earthquake hits and a ton of buildings are destroyed, there's no way the city of SM is going to make 70% of their residents homeless because of this zoning ordinance. But what about the poor suckers whose condo is destroyed in a fire (when there aren't thousands of other people screaming about this law)?

Further, I've done some more checking, and at least one other of the big four lenders (aside from my lender) explicitly has in their processes that a "Legal, Non-conforming Condo that cannot be rebuilt in event of damage or destruction" does not qualify for lending. So more practically speaking, this definitely at least hurts marketability of condos.

I'm still surprised no one else has direct experience with this. It's explicitly in a big four lender's policies, so I just can't believe I'm the first person ever to have dealt with this.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > California > Los Angeles
View detailed profiles of:
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top