Explanation
BACKGROUND: The Department of Development has been contacted by the owner of a number of two-family dwellings along McGuffey Road in the Linden area who is in the process of selling these dwellings. When built around 1951, the two-family dwellings were allowed by the zoning classification covering that area, which since then has been rezoned to R-3 and no longer allows two-family dwellings. This "downzoning" has rendered these dwellings non-conforming, and while the Zoning Code allows for them to continue as non-conforming uses, they could not be rebuilt as two-family dwellings in the event of damage of fifty percent (50%) or more of their value.
Recently, some lenders have begun requesting "rebuild assurance" letters from cities even though the lender requires the buyer-borrower to maintain casualty loss insurance. As a condition of the loan commitment and closing on the transaction, the lender in this case is requiring a letter from the City (ordinarily the Building Services Division) that assures that in the event of damage or destruction the City would allow the structure to be rebuilt so long as the reconstruction was within the same footprint of the prior structure, and was used for the same purpose, i.e. a two-family dwelling. Since the Zoning Code currently would not allow for a reconstruction under those circumstances, the Building Services Division will not issue such a letter.
Rather than making permanent changes to the Zoning Code or requiring a Council variance or rezoning at this time, this ordinance would authorize issuance of a "rebuild assurance" letter in this particular case only. In the event it appears that this is likely to be a recurring situation, the Department of Development will assess whether any permanent change in the Zoning Code is warranted and make a recommendation to City Council accordingly.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of...
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