Improper zoning on Triplex with no legal nonconforming documentation

[Robert Deland]

I am under contract for a Triplex in Tampa.  It was built in 1980, and it is zoned RS-50 (single family residential).  This is common in Tampa (and I think in other cities); however it does not have any paperwork saying it is "legal non-conforming".  I talked to city zoning and they said, well we have no paperwork on it, so we would expect a single family property to be there.  They also said that if I owned it and tried to pull any substantial permits they would be denied because the zoning department would require the paperwork to be corrected.  

Has anyone run into this situation?  I think the correct action would be for me to specify that closing is contingent on the current owner providing a letter from city zoning proving legal non-conforming status.  This would involve them doing a "formal decision" with city, which is an administrative process that takes about 60 days.  They could say no and go to the next buyer who might not care, but it seems like a huge risk to take on this undocumented property as a buyer.  Also, there have been un-permitted renovations without either city approval or historic district (hyde park) approval.  

Lastly, the city confirmed that if it burns down I would not be able to rebuild as a triplex and it would need to be a single family home. So, I am wondering how this would be insured, and also how the lender (VA Loan) would approve underwriting.

Thanks for any inputs!

[Kristina Kuba]

@Robert Deland

Many of my investors have purchased non conforming properties in Tampa. Run the risk/reward on it. The nice thing about it is most overlay districts in Tampa allow you to build an ADU accessory dwelling unit in the back. That's the hack. Call the city zoning dept and ask if the parcel is in an ADU eligible zone.

If it burns down or a hurricane crushes it, you lose your triplex and you rebuild as a SFR with an ADU. You go from 3 units to 2 units. Again, make sure you are comfortable with the risk/ reward on it and the numbers would work.

Code enforcement tends to be strict in the urban core of Tampa… pulling the correct permits would be in your best interest. As you pull the permits if the job value hits a certain threshold you lose non confirming status and you have an illegal 3 unit.

Your fastest and most efficient solution right now is to extend the contract with an addendum that the seller must receive a “formal decision” with corrected zoning status thru Accela (Tampa online portal) prior to closing. If your current seller can show that the property was leased consistently and has the lease documents, the city might not ask for the architectural drawings in order to sign off on this property to be rezoned. It is a case by case. This process will take at least 60 days and not more than 90 days.

Lastly, if you are using a real estate agent that invests themselves, they should be educating you on this whole process as this is a common yet solvable situation.