Town Council refers non-conforming lots/setback amendments to future workshop

The Town Council on June 8, 2020 voted to schedule a workshop on non-conforming lots.

Per the Comprehensive Plan adopted on July 8, 2019, the Ordinance Committee met on April 19 and May 13 to discuss recommendations #30 and #82, which would provide amendments related to nonconforming lots. It is the recommendation of the Ordinance Committee that the Town Council schedule a workshop to discuss the recommendations prior to a referral to the Planning Board.

Below are details from the Ordinance Committee Memo of May 27, 2020:

#30 Evaluate reducing the minimum lot size for existing, vacant, nonconforming lots to allow construction on infill lots of between 5,000 sq. ft. and 10,000 sq. ft. in size that will be served by public sewer and water and will comply with the Mandatory Affordable Housing provisions for low-income housing.

The review of infill lots in the 2019 Comprehensive Plan (p. 76-77) was discussed, and the excerpt is included below.

Infill lots

Approximately 200 hundred subdivisions have been recorded in the town dating back to the late 1880's. Many of the town's charming neighborhoods were developed from these early land development plans. Scattered in these neighborhoods are unbuilt lots that do not comply with current zoning requirements, but are of the same relative size as the built lots in the neighborhood. Some of these vacant lots could be built upon if the minimum nonconforming lot size of 10,000 sq. ft. were reduced, especially if infill lots of less than 10,000 sq. ft. were required to be served by public sewer and water. The small size of the lots also has the potential for construction of more affordable homes.

In 2000 and again in 2004, the town council referred to the planning board a request to review undersized nonconforming lots. The 2004 analysis indicated that if the 10,000 sq. ft. nonconforming lot size was reduced to 7,500 sq. ft., approximately 41 lots may become buildable. If the nonconforming lot size was reduced to 5,000 sq. ft., potentially 72 additional lots may become buildable. The analysis was based on all lots having access to public sewer. In 2005, the planning board recommended that the minimum size for nonconforming lots be reduced to 7,500 sq. ft, and that lots of less than 10,000 sq. ft. must be in compliance with the Mandatory Affordable Housing provisions. These changes were not adopted by the town council.

From a financial perspective, infill lots have high potential for increasing the municipal tax base. Most of the lots have frontage on town roads where connections to public sewer and water can be made. The town is already maintaining the roads and utilities, so there is little increase in municipal infrastructure costs. The lots are typically valued as unbuildable, or "extra land," and their change in status to "buildable" will have a very significant increase in assessed value. For example, an existing undersized 7,800 sq. ft. lot has an assessed value of $23,000. If the lot became buildable, the land value would increase to $100,000, plus the value of any home constructed (subject to change with affordable housing requirements).

From a growth management perspective, allowing construction on infill lots discourages sprawl, because less of the growth that the town experiences is located in "green field" developments. Because infill lots are located in developed areas, environmental impacts are typically less. New road construction is usually not needed so there is less increase in impervious surface and less stormwater generated. There is less fuel consumption as the town is already plowing and driving school buses over the existing roads adjacent to the infill lots. Infill lots also tend to be located closer to goods and services, so homeowners have the choice to drive less.

From an affordable housing perspective, the small size of infill lots will limit the size of the new home. Nevertheless, Cape Elizabeth's compact neighborhoods have a history of retaining and increasing in value. If allowing development on undersized lots is intended to promote affordable housing, permanent affordable housing requirements should be attached to lot buildability.

Maps showing the approximate number and location of lots that are between 5,000 sf. and 9,999 sq. ft. were reviewed. Approximately 24 lots may become buildable with this minimum lot size change. The actual number of potential lots could be higher or lower depending on other factors for each lot. The existing zoning ordinance requirements for determining nonconforming lot buildability would continue to apply.

The proposed amendment not only reduces the minimum lot size, it also requires that the lot must comply with the Mandatory Affordable Housing requirements (Zoning Ordinance, Sec. 19-7-4) for low-income housing. At this time, the maximum sale price for low-income affordable housing is $236,868 with a maximum income of $71,900. The requirements preserve the lots as permanently affordable to low-income households.

In its discussions, the committee noted both the potential for additional municipal revenue and the opposition in compact neighborhoods to making vacant lots buildable.

#82 Review the regulation of existing, nonconforming lots (infill lots) and recommend ordinance revisions that allow nonconforming lots a reasonable opportunity to be built upon and/or buildings expanded to meet the needs of modern households while also protecting the character of neighborhoods.

The committee reviewed the existing reduced setbacks for nonconforming lots and maps showing the distribution of nonconforming lots townwide. In the RC District, existing lots of less than 20,000 sq. ft. in size are nonconforming. In the RA District, lots of less than 80,000 sq.ft. in size are nonconforming. The Nonconforming chart in Sec. 19-4-3 of the Zoning Ordinance provides for lesser side and rear yard setbacks for nonconforming lots.

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