RE Principles Ch. 24 Control of Land Use and Green Initiatives

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  1. What is the purpose of land use controls?
    is to ensure that our limited supply of land is being put to its highest and best use for the benefit of the general public as well as private owners.
  2. The various ownership rights a person possesses in a parcel of real estate are subject to certain regulations, what are the three main categories?
    1. public land-use controls: zoning ordinances, subdivision regulations, and building codes.

    2. Private controls: deed restrictions

    3. environmental legislation
  3. Police power limits and controls the use of privately owned real estate by...
    • -zoning
    • -subdivision regulations (population control)
    • -codes that regulate building construction, safety, and public health; and
    • -environmental protection legislation.
  4. What is a comprehensive plan? What is it used for?
    • Aka master plan; to guide the long-term development of a government subdivision, such as a city or county, to ensure that social and economic needs are balanced against environmental and aesthetic concerns.
    • -expresses community goals and objectives; plan on how to improve city or county.
  5. What are essential in preparing a comprehensive plan?
    economic and physical surveys
  6. What is the Tax Increment Reinvestment Zones (TIRZs)? What is it used for?
    • Aka tax increment financing (TIF)
    • -is created by a city council to attract new business to an area.
    • -when a city faces difficulties in stimulating economic development in downtown areas due to deterioration and vacant buildings.
    • -help finance the cost of redeveloping or encouraging infill development in an area of a city or county that would otherwise not attract sufficient private investment in the reasonably foreseeable future.
    • -Taxes are set aside in a fund to finance public improvements in a reinvestment zone
  7. _______________ and _____________ help cities reclaim residential neighborhoods adjacent to central business districts.
    homestead preservation districts and reinvestment zones
  8. TIFs have no taxing or assessment powers.
    • true
    • EX: If the taxable value for a base year is set at $6 million and improvements to the area increase the taxable value to $7 million, the taxes collected on the additional $1 million, or increment, is earmarked for the TIF fund to pay for project costs.
  9. Increment
    the amount by which something increases
  10. The ________________ is a police power measure in which the private land in a community is divided into districts or zones delimiting the various classes of land use.
    zoning ordinance
  11. _______ is a tool for implementing a local comprehensive plan to prevent incompatible adjacent land uses, overcrowding and traffic congestion; restrict height and size of buildings and promote aesthetic value.
    zoning
  12. Zoning powers are conferred by state...
    enabling acts.
  13. Texas delegates zoning powers to cities but not municipalities.
    false; delegates powers to munipalities but not cities
  14. There are no nationwide zoning regulations.
    true
  15. No states have statewide zoning regulations, except Hawaii.
    true
  16. What are the typical land-use classifications?
    agricultural, residential, commercial, and industrial
  17. The City of Houston is the largest city in the United States without a zoning ordinance, and its residents have voted several times to keep it that way.
    true
  18. What is a planned unit development (PUD)?
    • A special zoning classification used by many communities for cluster zoning, multiple-use zoning, or special-purpose zoning. 
    • -a planned combination of diverse land uses, such as housing, recreation, and shopping, in one contained development or subdivison. 
    • -Permits a mixed-use zone for properties that would normally not be compatible and creates a unified development in which one or more residence areas is combined with one or more commerical or office areas.
  19. What is a buffer zone?
    • zoning districts that gradually change from a higher-intensity use to a lower-intensity use.
    • EX: a high-density multifamily zone for apartments might be placed between commercial and single-family zones.
  20. What is bulk zoning?
    to control density and prevent overcrowding through restrictions on setback, building height, and percentage of open areas.
  21. What is aesthetic zoning?
    to require that new buildings conform to specific types of architecture
  22. What is incentive zoning?
    to require that street floors of office buildings be used for retail establishments.
  23. What is directive zoning?
    to use zoning as a planning tool to encourage use of land for its highest and best use.
  24. P&Z stands for...
    planning and zoning commission
  25. Zoning ordinances must not violate
    the rights of individuals and property holders (due process under 14th amendment) or (provisions of the state constitution)
  26. What are the tests applied in determining the validity of zoning ordinances in regards to not crossing the rights of individuals or property holders.
    • power be exercised in a reasonable manner
    • -provisions by clear and specific
    • -ordinances by free from discrimination
    • -ordinances promote health, safety, and general welfare under the police power concept; and 
    • -ordinances apply to all property in a similar manner.
  27. All property owners within 200 feet of any proposed zoning change must be notified than an amendment to the zoning map has been proposed, plus a 15-day notice published in a local newspaper must be given before public hearing.  How can owners protest against the new zoning change if they disagree with it?
    -If 205 of the owners protest the change, but the governing body must approve the change by at least three-fourths vote.
  28. What is spot zoning?
    zoning in a small area that differs significantly from adjoining parcels; convenience store in the middle of a residential area.
  29. What are Conditional Use Permits?
    • -aka special use permit
    • -allow a property to use only if stipulated conditions are met; special conditions are for the benefit of a neighborhood, not the individual property
    • -EX: B&B in a residential area, P&Z will put special requirement on the B&B to take the burdens off of the single-family residential properties: setback from street, extra landscaping, controlled parking, etc.
  30. In order to request a conditional use permit, who do you contact?
    P&Z; planning and zoning commission
  31. What is a nonconforming use?
    • -is a use that predates the zoning ordinances or its amendments
    • -when after a rezoning process, sometimes the use of an existing building or the building itself no longer conforms to the new zoning classification
    • -The use may be allowed to continue, until 1. the current use is discontinued, 2. the improvements are destroyed or torn down, or 3. the ownership of the property is transferred. OR will be amortized over a specified period, allowing for a return on the owner's investment but setting a definite sunset period for the use to conform with the new zoning ordinances.
  32. What is a variance?
    • -permits an exception to a zoning ordiance; it is for the benefit of one parcel only
    • -used mainly if the new zoning ordinanace would cause the property owner hardship because of special circumstances, but not to cut development costs.
    • -EX: height of a building, minimum square footage of the lot area, etc.
  33. Zoning variances are heard by the city council.
    • false; zoning variances are heard by zoning boards of adjustments (ZBAs), which have been established to hear complaints about the effects of zoning ordinances on a specific property. 
    • ***Members of these boards must be free of personal or political influences.
  34. A builder submits a house plan to the P&Z for approval. However, the fireplace on one side of the house encroaches into the required 15-foot side yard setback. If the builder cannot adjust the floor plan or move the house on the lot, the P&Z may take a request for a __________ to the ________.
    variance to the ZBA.
  35. Purchasers of property must be aware of zoning requirements.  Licensees should determine whether a buyer's proposed use for the property conforms to existing zoning ordinances.  If either the seller or a licensee misrepresents or does not mention the actual zoning use, the buyer can...
    back out of the transaction
  36. What is extraterritorial jurisdiction?
    • -a half-mile to five-mile area surrounding an incorporated area over which the municipality has the right of subdivision approval and the potential for annexation.
    • -the purchaser is charged with contacting all municipalities in the general proximity of the property to determine whether the property is located within, or is likely to be added to, a city's extraterritorial jurisdiction.
  37. annexation
    incorporation by joining or uniting; take over
  38. What are the three steps in subdivision land development?
    1. Initial planning stage: seeks raw land, licensed surveyor for land, subdivision plat submitted to the city planning staff for evaluation; they use subdivision regulations; passes or needs adjustments/amendments to zoning map; surrounding property owners may need to be notified.

    2. Final planning stage: plans approved, recorded in the county clerk's office and the city issues a certificate to the developer; rules and regulations laid out; paper work done to begin developing process

    3. Disposition or start-up stage: carries out development; streets, curbs, gutters, sanitary and storm sewers, and utilities are installed; construction and marketing begins
  39. What are the subdivision regulations generally provide for in land development?
    • -location, grading, alignment, surfacing, and widths of streets, highways, and other right of ways
    • -installation of sewers and water mains
    • -dimensions of lots and length of blocks
    • -areas to be reserved or dedicated for public use, such as parks or schools; and 
    • -easements for public utilities
  40. Construction standards, such as kinds of materials, electrical wiring, and fire prevention, that must be met in repairing or erecting buildings set by the city or county are called...
    building codes
  41. Most communities require the issuance of a ________________ by a city building official before a person can build a structure or alter or repair an existing building on property within the corporate limits of the municipality.
    building permit; verify compliance with building codes and zoning ordinances by examining the plans and inspecting the work.
  42. If the construction of a building or an alteration violates a deed restriction, the issuance of a building permit will not cure this violation.
    true; meaning even though someone gets an approved building permit for a project, if it violates a deed restriction, it can be torn down or stopped
  43. If a structure is built without a permit, city officials may require that it be dismantled.
    true
  44. Builders and developers who have filed a development permit with a city need meet only those ordinances applicable at the time the application is filed.
    true
  45. After the completed structure has been inspected and found satisfactory of a building, the city inspector issues a...
    certificate of occupancy
  46. What is a deed restriction or restrictive covenant?
    -placed by the owner or developer on the use of land by including a provision for it in the deed when the property is conveyed or by filing a separate declaration of restrictions with the county clerk.
  47. In Texas, a lot owner has the right to opt out of the renewal or extension.
    true
  48. Deed restrictions cannot violate local, state, or federal laws.
    true
  49. Less than 1% of Texas land is state owned.
    true; public owneship
  50. What is the Interstate Land Sales Full Disclosure Act?
    • -consumer protection act, the law requires those engaged in the interstate sales or leasing of 25 or more lots to file a statement of record and register the subdivision with HUD. 
    • -Seller has to give a property report to prospective buyers; contains all essential info about the property; distance over paved roads, number of homes currently occupied, soil conditions, septic systems, etc.
  51. Most federal environmental legislation is enforced at the state level by the _______________________. In addition to state and the federal government, cities and counties may also pass environmental regulations or ordinances.
    Texas Commission on Environmental Quality (TCEQ)
  52. Environmental factors, influence the real estate market, only a little.
    false; property may change drastically by environmental factors or green factors.
  53. Texas Commission on Environment Quality (TCEQ) does what?
    • -the primary environmental agency for the State of Texas
    • -provides technical and compliance assistance for pollution prevention issues
    • -administers clean air, clean water, safe management of waste, resource conservation, Superfund, and toxic release program
  54. Texas Department of State Health Services (DSHS) does what?
    -provides direct services to prevent occupational and environmental diseases through identification, evaluation, and control of environmental health hazards including asbestos; lead; indoor air quality (mold); radiation control; uranium mining, processing, and by-product disposal
  55. Texas Parks and Wildlife Department (TPWD) does what?
    -administers the laws and regulations pertaining to endangered or threatened animal and plant species in Texas
  56. If the property was constructed before _____, a purchaser must also be given a lead-based paint disclosure form.
    1978
  57. It is the seller's duty to know which disclosures must be given in each transaction and to ensure that the seller has given them to the purchaser before execution of a contract.
    false; it is the agents responsibility
  58. If there is any question about the environmental condition of the property what can be done?
    • -buyer can fill out an environmental assessment addedum promulgated by the TREC creates a contract contingency allowing a buyer to get an environmental inspection in a residential transaction.
    • -the addendum permits a buyer to terminate a contract if environmental research or reports indicate conditions that adversely affect the use of the property.
  59. The licensee should ask the owner about environmental hazards.
    true
  60. Having an inspection done for an environmental hazard can be a marketing plus.
    true
  61. Developers and purchasers of commercial and industrial properties usually rely on the services of environmental auditors.  What do environmental auditors do?
    -checks the property's history of use, tests soil, water, air, and structures, etc.
  62. Lead inspectors do not have to be certified.
    false; they have to be certified.
  63. Mold assessment consultants and mold remediators must be licensed, with few exceptions.
    true
  64. Environmental auditors can be called on at any stage in a real estate transaction, when are they most likely to be called?
    as a condition of closing
  65. Most insurance companies stopped covering mold-related claims due to the...
    • "black gold rush" which was a lot of lawsuits against the insurance companies where homeowers sued them stating that the care for mold was mishandled.  
    • -now only mold caused by water damage may be covered
  66. Mold spores are a natural part of the environment. The Centers for Disease Control and Prevention (CDC) indicates that allergic symptoms similar to hay fever are the most common health concern from mold.
    true; although some people are affected more.
  67. How can property owners, designers and contractors decrease mold exposure?
    • -attend to a water event no later than 24 to 48 hours.
    • -Hard surfaces mold removal can be done by cleaning with commercial products, soap, and water or a weak bleach solution.
    • -Softer surfaces such as ceiling tiles, drywall and carpet have to be replaced.
    • -If there is an extensive amount of mold, a licensed mold remediation contractor may need to be hired; receive a Certificate of Mold Remediation
  68. What does the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) do?
    • -established a $9 billion Superfund to clean up uncontrolled hazardous waste sites and to respond to spills
    • -identifies potential responsible parties and ordering them to take responsibility for the cleanup action.
  69. Under the CERCLA, a landowner may be liable for cleanup when contamination exists, regardless of whether the contamination is the result of the landowner or others.
    true; a landowner can seek reimbursement for cleanup cost from other's action by showing they had no knowledge of the damage and have sought to exercise due care by making a reasonable search to determine the properties environmental standing.
  70. Real estate professionals cannot be held reliable for environmental liability.
    false; under certain circumstances they can be such as improper disclosure; therefore, licensees must be aware of potential environmental risks from neighboring properties, such as gas stations, manufacturing plants, etc.
  71. Real estate appraiser adjustments not only reflect the cleanup cost of environmental problems, but also...
    the degree of panic and suspicion that exists in the current market.
  72. The real estate arppraiser's greatest responsibility is to the ________, who depends on the appraiser to identify environmental hazards.
    lender
  73. What is asbestos?
    • -can be an environmental risk
    • -a mineral that has been used for many years as insulation; floor tile and roofing material
    • -harmless if not disturbed, but cancerous (respiratory) if disturbed; dust
  74. What is carbon monoxide (CO)? And where is it found on a property?
    • -can be an environmental risk
    • -colorless, oderless gas that occurs as a by-product due to incomplete combustion when burning such fuels as wood, oil, and natural gas. 
    • -Furnaces, water heaters, space heaters, fireplaces, and wood stoves all produce CO as a natural result of their combustion of fuel. 
    • -Improper ventilation or equipment malfunction may result in dizziness and nausea, or even death
  75. What is electromagnetic fields (EmFs)?
    • -can be an environmental risk
    • -generated by the movement of electrical current through any electrical appliance. 
    • -major concern involves high-tension power lines.
    • -EmFs are suspected of causing cancer, hormonal changes, and behavioral abnormalities--although to date there is no proof.
  76. What is groundwater contamination?
    • -can be an environmental risk
    • -not only the runoff at ground level but also the underground water systems that are sources for public and private wells.
    • -contamination occurs from a number of sources, including waste disposal sites, underground storage tanks, pesticides, and herbicides.
  77. What is lead?
    • -can be an environmental risk
    • -mineral used in paint to protect wood from damage by water; also has been used in the installation of water pipes
    • -becomes a health hazard when ingested 
    • -a disclosure notice is required on the lease or sale of properties built before 1978
    • -can cause damage to the brain, kidneys, nervous system and red blood cells; more harmful to younger children
  78. What is mold?
    • -makes up 25% of the earth's biomass; found in all nonsterile environments; indoor and outdoor
    • -growth is associated with flooding, excessive humidity, water leaks, or condensation; warm humid conditions
    • -to date, no federal or state regulations establish exposure levels fro molds as they affect air quality
  79. What is polychlorinated biphenyl (PCB)?
    • -can be an environmental risk
    • -carcinogenic substance used before 1977 as coolants and lubricants in transformers, capacitors, and other electrical equipment.
    • -also found in consumer products such as old lighting fixtures, electrical applicances, and hydraulic oils.
    • -wastes that contain PCBs have been buried in landfills and PCBs have entered the environment from accidential spills and leaks; do not break down easily, remind in environment for a long time.
    • -health hazords range from skin conditions to liver cancer
  80. What is radon gas?
    • -can be an environmental risk
    • -an oderless, radioactive gas produced by the decay of other radioactive materials in rocks under the surface of the earth that generally enter a house through cracks in the found or through the floor drains.
    • -long exposure can cause lung cancer
  81. What is Underground storage tanks (USTs)?
    • -can be an environmental risk
    • -used in both residential and commercial settings
    • -from 3 million to 5 million underground storage tanks in the U.S. contains hazardous substances such as gasoline or home heating oil.
    • -when the containers become old and rust and start to leak, the material can enter the groundwater and contaminate wells and pollute the soil. 
    • -According to the Environmental Protection Agency (EPA), around 40% of the tanks are leaking.
  82. What is Urea formaldehyde foam insulation (UFFI)?
    • -can be an environmental risk
    • -a human-made insulation material that become dangerous because of the gases released from the material after it hardens.
    • -UFFI is known to cause cancer in animals; in humans, it can cause respiratory problems and eye and skin irritation.
  83. What is waste disposal sites?
    • -can be an environmental risk
    • -for landfill operations or radioactive material disposal that can affect property values in surrounding areas.
    • -landfills constructed on the wrong type of soil will leak waste into nearby wells
    • -emissions from radioactive wastes can cause cancer or death.
  84. In 2008, the City of Dallas adopted a city-wide green building ordinance for new construction.
    true
  85. A little over half of renters said they would pay 10-15% more for an environmentally friendly apartment.
    true
  86. Energy Star is a joint program of the EPA and the U.S. Department of Energy that can certify homes as energy efficient. What are the components of and Energy Star home?
    • -effective insulation
    • -high-performance windows, 
    • -tight construction and ducts,
    • -efficient heating and cooling equipement, and 
    • -energy-efficient lighting and applicances.
  87. An Energy Star-qualified new home is at least ___% more energy efficient than homes built to the 2004 International Residential Code (IRC).
    15%
  88. For existing homes, Energy Star offers programs.
    true; online, energy auditiors
  89. What is Leadership in Energy and Environmental Design (LEED)?
    • -another common green building certification
    • -rating system issued by the US Green Building Council. 
    • -measures performance  in nine key areas; 
    • --using a previously developed lot close to community resources and transit
    • -monitoring energy use
    • -reusing and recycling building materials 
    • -educating homebuyers
    • -using renewable and clean sources of energy
    • -using water-wise landschaping.
  90. The only consensus-based green building standard for residential properties and written to be compatible with existing building codes, The _____________________ offers uniform guidance on green building practices
    National Green Building Standard (NGBS)
  91. ___________ seems to have become the most popular new-home energy rating system among homebuilders looking to differentiate themselves from the comparable.
    Energy Star
  92. What are two main important factors of an energy efficient home?
    • -better for environment
    • -saves money in long run
    • -great selling factor
  93. What is a HERS score?
    • -Home Energy Rating System 
    • -the standard new home built to 2009 standards would rate a 100.
    • -the score will drop if builders do anything more than what is required in the way of energy efficiency.
    • -each one point decreases in the HERS index corresponds to a 1% reduction in energy consumption.
    • -EX: houses with a 72 rating are 28% more efficient than a standard house; a house with a 50 rating would be 50% more efficient.
  94. What factors must be in place in order to get a Green Mortgages/energy-efficient mortgage (EEM)?
    What are the pros of having an EEM?
    • -typically used to purchase a new home that is already energy efficient, such as an Energy Star--qualified home
    • -or a borrower can have a home energy rater verify that the home is energy efficient. 
    • -Pros: purchaser can qualify for a larger loan because of money saved.
    • -offered in conventional, VA, and FHA.
  95. Both the state and federal government have incentive programs to encourage homeowners to increase the energy efficiency of their residences and to purchase energy-efficient items. What are some of them?
    • -Texas offers an ad valorem property tax exemption for the portion of the appraised property value that arises from the installation or construction of a solar or wind-power energy device that is primarily for the production and distribution of thermal, mechanical, or electrical energy for onsite use, or devices used to store energy.
    • -solar energy; heat, water wind, biomass
    • -Residential Energy Efficiency Tax Credit; periodically; federal; available to offset the cost of energy-efficient applicances and repairs; income tax credit deducted from the IRS; energystar.gov, click on Tax Credit for Energy Efficiency tab for current program offerings.
    • -federal Residential Renewable Energy Tax Credit; purchase of renewable energy systems; solar water heaters, wind turbines, fuel cells, etc.; taxpayer can claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit used as a US residence by the taxpayer; there is no max amount that can be deducted for systems placed in service after 2008; dsireusa.org/incentives
  96. The Texas tax exemption is available to residential properties only.
    false; is available to residential, commercial and industrial
  97. Not only federal and state governments over energy efficient incentives, but also city and utility companies.
    true
  98. ________________ is a good source of info on appliances and home improvement products.
    energystar.gov/rebatefinder
  99. Internet sites such as ___________ and _____________ have dozens of useful tips and suggestions for saving energy and money at home, at school, and at the office.
    • thedailygreen.com
    • thegreenguide.ocm
  100. Every gallon of gasoline burned products about __ pounds of carbon dioxide.
    19
  101. As a real estate professional, consider obtaining the ______________, which provides valuable education on what it means to go green in the real estate market.
    NAR Green Designation
  102. If a landowner wants to use property in a manner that is marginally acceptable under the local zoning ordinances, the planning and zoning commission might approve the request with certain stipulations. This describes...
    a conditional use permit
  103. Public land use controls include
    • subdivision regulations
    • environmental protection laws
    • zoning ordinances
  104. The purpose of a building permit is to
    provide evidence of compliance with municipal regulations
  105. Zoning powers are conferred on municipal governments by...
    state enabling acts.
  106. Zoning ordinances are generally enforced by...
    local requirements that building permits will not be issued unless the proposed structure conforms to the zoning ordinance.
  107. A subdivision declaration reads, "No property within this subdivision may be further subdivided for sale or otherwise, and no property may be used for other than single-family housing." This is an example of...
    a restrictive covenant

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RE Principles Ch. 24 Control of Land Use and Green Initiatives
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2016-08-27 20:57:20
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