Realtor asks that rezoning of residential property be addressed

August 10, 2007
Santa Paula City Council

A report on non-conforming residential uses turned into a discussion on commercially zoned residential property, with one area Realtor noting implications of taking private property, at the July 16 City Council meeting.

By Peggy KellySanta Paula TimesA report on non-conforming residential uses turned into a discussion on commercially zoned residential property, with one area Realtor noting implications of taking private property, at the July 16 City Council meeting.Anita Pulido told the Council that she had asked months ago for discussion on residential zone changes. “I’m here as a Realtor to speak of the impacts on sellers, buyers and lenders, and how” having residences on property now zoned commercial “affects the affordability of these types of property. Harvard Boulevard residential property has been rezoned, and “the impact this is having is a little bit taking” property without compensation, due to lowering property values.Pulido said that when a seller has legal, non-conforming product on the market, all restrictions - that range from adding on to improving the property - must be disclosed to the buyer. “This is the biggest investment” a buyer will make, and the seller has to “reduce, reduce, reduce” the price because of value lost due to rezoning.“You may not be aware of the impact on lending, this is a big impact,” as buyers cannot utilize a “conventional, best loan,” and rather must have a higher down payment and pay higher - or even variable - interest rates. Clients interested in such properties are often in need of affordable housing, noted Pulido.
Also at risk are the seller and the Realtor, who must make sure that all restrictions and zoning are revealed or face accusations of misrepresentation. Pulido said a seller was not even aware that the residence had been rezoned until escrow opened on the property. And that was the end of the deal, she added. Pulido asked that the Council consider “grand-fathering these types of property.”And, ironically, “You cannot put anything commercial on a standard lot and provide the parking that would be required for commercial,” said Pulido, who asked that such properties be reverted to residential zoning so “they can sell at a fair market price. I ask the Council to consider the difficult position Harvard property owners are in.”Planning Director Janna Minsk said that some zoning changes did occur when the General Plan was updated in 1998 and in a subsequent 2004 “overhaul,” and that the upcoming Housing Element update could be an opportunity for change.“When the city rezones a corridor and the Council goes through the gyrations” of adopting same, are property owners notified, asked Councilman Bob Gonzales. Such issues are normally noticed citywide, said Minsk, and Mayor Ray Luna noted that the Council wants to make every effort to ensure each property owner is notified.The exemption to individual notices is if more than 1,000 parcels are affected, noted City Manager Wally Bobkiewicz, a rare instance but one that is the focus of public hearing. “The larger question for the Council is have community standards changed” and residential areas rezoned, and should be reexamined, said Bobkiewicz, who suggested that an inventory of residential properties that have undergone zoning changes since the 1998 General Plan update be prepared and examined.



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