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How Outdated Zoning Laws Are Fueling America’s Housing Crisis

The developer does not own the land. The community (lot owners) own the land. Kind of like a condo association. The lots were drawn out and sold over 50 years ago. It least half of them are built on. I don't think they would ever agree to increase the density.
This is how this works, just in case you do not understand it.

A developer wants to buy a large plot of land and create a gated community. They go through a development process with the municipality, county, and even the state sometimes to get approval and even put up surety bonds. Many, if not all, of these are PUDs. The developer has options. They can subdivide the land into lots and sell them off, often with the option to be the sole builder. There need to be roads and infrastructure, which the developer needs to pay for. If it is to be a gated community with an HOA that relieves the municipality of road and sewer maintenance but not police and fire, the developer can also not subdivide and create a large townhome community or apartment community. Eventually, the developer will sign over the responsibility to the HOA association. So, from the beginning, the municipality determines what can be built where.
 
I don't think the municipality can make them build muti family buildings or demand that they make the lots smaller now. I was told they did not have any zoning there at the beginning (1940's).
 
I don't think the municipality can make them build muti family buildings or demand that they make the lots smaller now. I was told they did not have any zoning there at the beginning (1940's).
There was probably no zoning in the 40s, but there certainly is now. So what they can do or change today is subject to the rules of the municipality. There has to zoning due to the comprehensive plan requirements of each state. Rules may be in place that make an older development legal nonconforming. Therefore, as long as they don't change anything, it can stay the way it is. Once they try to build on a new lot or knock down a house and build another, zoning setbacks under today's rules apply. PUD's, if any up there have very specific rules and regulations they must adhere to for any future use.
 
Zoning may allow duplexes or townhomes and deed restrictions may not permit them.
There is no county zoning where I live however the deed restriction for the development state a minimum 10 acres per dwelling unit.

It is not just governmental regulations that restrict growth.
 
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