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Updated about 6 years ago, 09/22/2018
This deal will be a home run if...
I found a house that used to be a bar/restaurant but the town changed the zoning to only allow single family properties in that area. If I can get them to give us a special use variance we should be able to get it fixed up, take the cash out, and have a nice cash-flow property with all of our money back. The trouble is the variance.
This town has a reputation for being stingy with them but I talked to their zoning director and he said that if there was ever a case that was likely to go through, this was the one. They are telling the current owner that he can not apply because he bought the place and knew that it was a single at time of purpose but that as the buyers, we could argue for financial hardship because no one would buy a 5100 sq ft SFR. We have lawyers on this of course but I was wondering if anyone had luck getting a hardship special use variance or tips to get one.
- Real Estate Professional
- West Palm Beach, FL
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That will be a Very local issue/best way to navigate. You need not just an attorney, but an attorney recognizable and respected by the decision makers.....personal relationships and contacts can be more important than anything else.
- Lender
- Lake Oswego OR Summerlin, NV
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the code is the code.. if there is a code for variances I have a hard time believing that they can single out the current owner but let you as a new purchaser use the code for the variances.. that sounds pretty odd to me.. I have done a lot of this work over the years.. and the code or laws are for everyone current owner and future owner.. that seems a little off to me.. And you cannot rely on what they tell you at the counter.. they just say whats possible.
you have to determine if this is a administrative action.. or does it go to the planning commission ( ie get political)
- Jay Hinrichs
- Podcast Guest on Show #222
@Wayne Brooks I agree about the local aspect and even around here going down the road a few hundred feet to the next town changes things drastically. This is a first for me and so I'm looking for any edge from the hive mind.
@Jay Hinrichs It is commission based. There is a board as opposed to just a person unfortunately because I think if it was just up to the director he'd be willing to give it to me. Have you ever gotten a hardship variance in this kind of situation? If so what evidence did you bring? I did a little more research just now and there are even a few duplexes a block over in the same district so it's not like this would be unprecedented.
- Lender
- Lake Oswego OR Summerlin, NV
- 61,717
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never did anything in New York so I don't know its all specific to the jurisdiction.. the variances I have gotten have been for set backs and a boo boo building into a set back.. density issues ..
I have not done one for a change use though.. in our state those are next to impossible to do and I would not even try..
but it could be vastly different in your jurisdiction.. and its too bad its not administrative..
- Jay Hinrichs
- Podcast Guest on Show #222
- Real Estate Professional
- West Palm Beach, FL
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Forgot to mention.....usually when zoning changes the “non conforming use” is grandfathered in with some restrictions.....if vacant for a certain amount of time or if destroyed, the exemption for being grandfathered in goes away.
- Lender
- Lake Oswego OR Summerlin, NV
- 61,717
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Originally posted by @Wayne Brooks:
Forgot to mention.....usually when zoning changes the “non conforming use” is grandfathered in with some restrictions.....if vacant for a certain amount of time or if destroyed, the exemption for being grandfathered in goes away.
people are dealing with this big time in the PDX market.. my banker had a restaurant client. it burnt down.. now with the new requirements they cant rebuild makes no economic sense.. business is gone... all that good will and reputation.
- Jay Hinrichs
- Podcast Guest on Show #222
There are two things that stick out like a sour thumb to me about what you have presented;
One: How can you afford a 5100 square foot building and still pretend to qualify for a financial hardship without comitting fraud?
and
Two; what you have been told about the current ownet not being able to apply for the variance based on the zoning laws changing sounds illegal to me.
why is the current owner selling? Does his or her decision to sell have anything to do with the zoning change? I would bring the current owner with me and have a face to face talk with the building officials and get it straight from the horses mounth with the current owner being aware.
You Know what they say," never believe 100% of what you have heard, only 50% of what you see and 25% of what you can verify". Maybe what they meant to convey was that the current owner cannot make modifications to the building without changing over to the new use zoning . In other words, make modifications to the building and you can no longer have a bar there, or that any new buyer would also not be allowed to have a bar there.
I know you may be the victim of your own wishful thinking but do not expect this to be a quick resolve and you know what they say,"time is money".
I would think that if you can afford to buy a 5100 square foot building then you can find an easier deal to make happen and make better use of your time.
There is this saying that keeps rolling around in my head, " never give a sucker a break", but to each their own.