When zoning collides with mortgage lenders and insurance company practices. What to do?

[Marmoset]

Small town WA State here. So I am running into a problem with our Comprehensive Planning and it's impact on existing home owners. We currently have 80 acres designated as Industrial in our land use plan. It is outside the City limits but within our UGA. The County has rezoned the property to be consistent with our Comp plan and zoned it industrial. The uses currently on the property are single family homes. Because it is zoned industrial the houses my not be rebuilt if they are destroyed by fire or other means. Because of this they can not be insured and therefore the banks will not loan or refinance those home owners. This creates quite a problem, no owner wants anything other than residential and it limits how effective long term planning is. Has anyone else run into this and how are you resolving it?

I should note that in the City we have added a code provision allowing any existing single family home to be rebuilt regardless of zoning. This has allowed existing homes to continue to get financing and insurance in the City but not the County (UGA). Since the properties in the City have no room to expand it works and lets the market decide, however in the County the parcels are large and if zoned residential they will continue to divide up their land into residential parcels making it even more difficult to go back and change it to industrial. By not allowing the residential change no one in that UGA will be able to sell their homes or refinance, or even get insurance. Smells like a taking.

Steve

[mike gurnee]

The county needs to adopt your language concerning rebuilding of existing housing.

[Kingmak]

Why wouldn't they zone it for residential in the first place if that is how the area is currently developed? Is there pyramid zoning in the UGA?

[Marmoset]

Why wouldn't they zone it for residential in the first place if that is how the area is currently developed? Is there pyramid zoning in the UGA?

The entire UGA is rural residential in actual use. Large 20 acre farm houses and small farms. Long term some of these large acre farms will become industrial or commercial. Planning for it to be something other than residential has become the issue. The needs of planning are running into the realities of lenders and insurance companies.

[michaelskis]

Why wouldn't they zone it for residential in the first place if that is how the area is currently developed? Is there pyramid zoning in the UGA?

The entire UGA is rural residential in actual use. Large 20 acre farm houses and small farms. Long term some of these large acre farms will become industrial or commercial. Planning for it to be something other than residential has become the issue. The needs of planning are running into the realities of lenders and insurance companies.

What does the public say? Is there substantial evidence collected from public hearings or visioning sessions to change this to an industrial/commercial area? Are there other areas currently zoned and planned for an industrial/commercial use? What about the infrastructure? Does this area have easy access to freeways and rail? What about municipal water and sewer?

[OfficialPlanner]

This is ridiculous IMO. The land is currently a residential use. The community wants nothing but a residential use. "The needs of planning" determines that industrial zoning is appropriate and that the residential use should be phased out. As a result, the current property owners are unable to sell or refinance their properties because the banks won't touch it.

How are you not already in court?

[Suburb Repairman]

The county needs to adopt your language concerning rebuilding of existing housing.

Probably the simplist answer, especially since I'll bet the county has this problem elsewhere as well.

The other alternative is to amend your future land use plan and then have the county subsequently rezone to whatever residential zoning district is appropriate.