Legal Non-Conforming Issue Selling?

Question

We're under contract to buy a 20-unit apartment complex. It's a legal non-conforming property. The zoning is single family residential. We're trying to get it rezoned as multi-family but we're getting pushback from the city. If we're never able to get it rezoned, will this be an issue if we go to sell it down the road?

Account Closed · Answer

Hi @Nate Shields,

I think most here are misunderstanding your question.

Your issue is that your property is not grandfathered in it's zoning status. That is generally fine, although a bit of a risk when purchasing a property with the incorrect zoning (for MF at least).

-First, I would use this to negotiate a much lower price on the property

-Second, check and make sure that the current owner did not try to have the property rezoned and fail. If they failed previously then it is a much larger risk.

-Third, Before rezoning the property, see if there are under-utilized areas you want to use to make it let's say 23 units instead of 20. Or even check if you want to merge some units. Hard to discuss without seeing plans.

Finally to answer your question, yes this will be an issue if you go to sell it down the road especially if you or someone else has failed trying to rezone the property. Typically with MF there will be no other uses for the building other than tearing it down so it shouldn't be too difficult to re-zone depending on your locality.

If you have more questions you may PM me as well.

Chris Youssi · Answer

Nate, I would agree with the last post. Have you reached out to Brian Gregory - City of Sycamore administrator. He is a great source - easy to setup a meeting with and will guide you along the correct path. If you do make sure feel free to mention my name ( Yow-c ) as we have built/ developed nearly 400 units in the Sycamore market. Best wishes!

J.R. Coffin · Answer

Even then, If someone wanted to buy your property, demo it down the foundation. They still could argue they were going to update and replace in kind if they stick within the existing volume.

Patrick Liska · Answer

If it's  a legal non conforming, then why are you trying to get it rezoned as a multi family?, it already legally is. Unless your intention is to add to the building, if not, then leave it alone and keep your 20 apartments going, you will not have a problem selling it because the property has been allowed to operate with that many apartments and can keep doing so as long as you do not plan to try and change the building. you can not add to a building that is non conforming without going before the zoning board of adjustments.

Craig Wilcox · Answer

In the Rockford area, if more than 50% of the property is damaged (fire, wind, etc.) a non-conforming can only be rebuilt per current zoning.  Also, if the property is vacant for more than a year (not likely for a multi) then it is no longer grandfathered.  Although, I know of one vacancy where that was not enforced.

I would like to know if it is possible for a city to remove the "grandfather clause" if they choose?  Has anyone heard of that happening?

Russell Brazil · Answer

If the use of it is grandfathered in, it doesnt matter what current zoning is unless someone wants to tear it down and rebuild something new.