Zoning analysis is an essential part of the commercial real estate due diligence process. AEI’s zoning experts will help you identify and avoid transactional liabilities with regards to the property’s conformance to governing zoning code.
What Are Zoning Regulations and Why Do They Matter?
Zoning regulations determine how land can be used and developed within a community. Nonconforming uses, structures, and outstanding code violations may result in disruption of cash flow and property devaluation should the municipality take enforcement action against a property. As such, the need to conduct proper municipal due diligence in connection with a real estate transaction is essential and considered an integral part of the loan & equity underwriting process.
AEI’s Zoning services are offered as stand-alone services or can be packaged with any of our consulting services, providing our clients with a single point of contact through project completion. Our zoning team of professional planners, engineers, and regulatory experts help clients avoid liability.
AEI Consultants provides three essential zoning services to our clients: Zoning Analysis Reports, Small Balance Loan Reports, and Permits & Approvals Support.
Zoning Analysis Report (ZAR)
AEI’s ZAR provides details of property use, improvements, and compliance with respect to zoning ordinances, as well as the re-buildability of the property. The report includes a zoning conformance letter from the municipality, a report of any zoning, building or fire code violations, and a Certificate of Occupancy.
- The significant components of Zoning Analysis Reports are:
- Property Use
- Setbacks & Height
- Bulk density & Floor Area Ratio (FAR) Restrictions
- Parking Requirements
- Right to Rebuild
- Potential Code Violations
- Municipal Document Retrieval (if available): Zoning Verification Letter, Variances, Conditional Use Permits (CUPs), Certificates of Occupancy & Approved Site Plans
AEI can also include a full Zoning Analysis for use and building conformance as outlined above under the ZAR service at the request of the client for an additional fee.
AEI’s zoning and urban planning experts are experienced in jurisdictions throughout all 50 states and will help identify zoning conformance issues concerning the use, bulk density, setbacks, building height, and parking requirements, and more.
Small Balance Loan Report
The Small Balance Loan (SBL) Zoning Reports are also ordered as a part of a project’s due diligence process, catering to the needs of SBL Lenders. They are an abbreviated version of the ZAR – comprised of the same scope of work as outlined above, apart from the Zoning Verification Letter and information on outstanding building/fire code violations (as this is included in the SBL Report).