Memorandum

City of Lawrence

Planning and Development Services

 

TO:

David L. Corliss, City Manager

 

FROM:

Planning Staff

 

CC:

Scott McCullough, Director of Planning and Development Services

Sheila Stogsdill, Assistant Planning Director

 

Date:

June 13, 2012

 

RE:

Planned Developments (PDs), Occupancy and Rental Licensing

 

 

At the February 28, 2012 City Commission meeting, the Commission asked for information regarding how occupancy is and has been regulated in Planned Developments (PDs) after receiving a report from the City Auditor on the city’s rental inspection program.  The discussion generally centered on how occupancy within Planned Developments has been regulated over time and how the definition of Family (3 or 4 occupants) is currently applied to PDs that include Detached Dwelling and Duplex housing types and whether these units should be required to obtain a rental license if rented.  

 

PDs, by code and by code interpretation, have continuously permitted up to 4 unrelated people per dwelling unit for all dwelling types.  Currently, a PD is designated in the code as a non-RS district and based on the definition of Family, non-RS districts are permitted up to 4 unrelated people per dwelling unit.  Additionally, being that PDs are non-RS districts, rental units are not required to be licensed under the city’s rental licensing ordinance.

 

Background

Planned Developments have been used in the city since 1966 when the concept was adopted as part of the adoption of a new code and termed Planned Unit Developments (see map).  Additionally, the 1966 code established a 4 person occupancy limit for a dwelling unit, regardless of zoning.  The general purpose of the Planned Unit Developments (PUDs) was to provide for housing of all types and designs and for necessary supportive commercial facilities conveniently located to such housing. Use of PDs allows for more efficient use of land and flexibility in the placement of buildings, use of open space, density, off street parking areas, and other standards.  Many of the PUDs have significant areas of Detached Dwelling (single-family) and Duplex type housing.  Until 2001, all housing types were limited to no more than 4 unrelated occupants.

 

 

Timeline

•          1966

­   New Zoning Code adopted

•          Planned Unit Developments (PUDs) are included as an overlay tool used in conjunction with a base district such as RS-1 or RM-2 Districts. (ie; Alvamar, Deerfield, Four Seasons, Meadowbrook)

•          Definition of Family states that a dwelling unit can contain no more than 4 unrelated people, regardless of zoning.

•          1975

­   PUDs were changed from overlays to base districts such as PRD-1 or PCD-2 (ie; Peterson Acres, Westgate, Westridge). The definition of Family remained unchanged at no more than 4 unrelated people in a dwelling unit.

•          2001

­   Definition of Family – The Family definition was changed to permit no more than 3 unrelated people in a dwelling unit in RS Districts and no more than 4 unrelated people in a dwelling unit in a non-RS District.  Based on staff’s recollection, this was in response to neighborhoods near the University of Kansas campus that had RS zoning seeking greater protections from the code to address impacts of allowing 4 unrelated occupants in a dwelling unit.

­   PD Occupancy - A determination was made that pre-1975 PUDs with an RS District base zoning were equivalent to PRDs (a non-RS District) and were permitted up to 4 unrelated people in a dwelling unit, regardless of dwelling unit type.  Though these dwelling units were permitted up to 4 unrelated occupants, they were required to be licensed if they were used as rentals since the PD had a base district of RS.  After this determination three PDs, Woods on 19th, Hanscom-Tappan, and Prairie Wind, specifically limited occupancy to 3 unrelated occupants per plan notes.

­   Rental licensing – The rental licensing program was implemented which required licensing of rented Detached Dwelling and Duplex dwelling units located in RS Districts.  This included such units located in pre-1975 PUDs with an RS District base zoning. (Deerfield, Holiday Hills No. 7 and No. 10, Meadowbrook, Alvamar, Heatherwood, Parkmar, Four Seasons).  As mentioned above, structures in these PUDs were permitted up to 4 unrelated people per dwelling unit unless specifically restricted to 3 per the approved plan.

•          2006

­   The Land Development Code was adopted which designated the existing PDs as new base districts identified as PRD-Name or PCD-Name (ie; PRD-Delaware Commons, PCD-Wakarusa Center, PUD-Deerfield).  PDs developed from this point forward are identified with a base district (RS7, RM32)           and a PD overlay and shown as being zoned RM32-PD.   The definition of Family did not change with the adoption of the code.

­   A determination was made that PDs are exempt from the rental licensing ordinance.  This essentially removed the PDs that had been included in the rental licensing program since the program’s inception in 2001.

 

In summary, PDs have continually permitted up to 4 unrelated persons in a dwelling unit unless specifically limited on the plan.  Presently a PD is designated in the code as a non-RS district and based on the definition of Family, non-RS districts are permitted up to 4 unrelated people per dwelling unit.  Additionally, because PDs are non-RS districts, rental units are not required to be licensed per a 2006 interpretation.

 

Discussion and Options

There are two overarching issues:

 

Issue 1, Occupancy in PDs:  Properties in PDs and standard RS zoning have had different occupancy limits since the definition of Family was revised in 2001.  RS zoning has a limit of 3 unrelated and PDs have a limit of 4 unrelated.  The question associated with Issue 1 is: Should all Detached and Duplex housing types in PD zoned areas have a limit of 3 unrelated occupants?

 

Relevant discussion points include:

1.    The issue may be one of housing type and not zoning district.  An argument can be made that areas of predominantly Detached Dwelling and Duplex uses in predominantly single-family areas were the target of reducing the occupancy limit from 4 to 3 in 2001.  Using zoning districts was an efficient method in the code to achieve the result to a high degree, but it did leave several areas of the city with a limit of 4 even as they act like single-family and duplex neighborhoods.  Without knowledge of the zoning of an area, the casual observer would not know whether they are in RS or non-RS zoning, but they would know if the area is single-family in nature based on the structure type.

2.    If the value of limiting occupants to 3 in Detached Dwelling neighborhoods adds a level of protection to neighborhoods of that nature, then the zoning of the neighborhood may not be as important as the housing type and all Detached Dwelling and Duplex neighborhoods zoned to a PD designation should have a limit of no more than 3 unrelated occupants.

3.    One exception to number 2 may be the Duplex housing type in RM12D zoning, a district that is intended to accommodate primarily duplex housing.  These zoning areas have enjoyed a limit of 4 occupants since the definition of Family was established since it is a non-RS district.  This district is unique in that a Detached Dwelling is only permitted with a special use permit.  Maintaining 4 unrelated occupants in the RM districts, including the RM12D district, is reasonable in staff’s opinion and has not been the subject of discussion at the Commission.

4.    The current code and interpretation causes confusion for staff and the public since many people do not know their zoning or the implications of it.

5.    Properties in PDs have never legally had an occupancy limit of 3.  Reducing these properties to a limit of 3 would be a major shift in policy and would affect over 1,500 Detached Dwelling and Duplex structures in the pre-1975 PDs alone. One way to implement a shift in policy but lessen the impact on existing property owners is to provide for an 18-month grace period by which to comply with the new standard.

 

 

 

Options

1.    Require that all Detached Dwellings and Duplex uses in PDs have a limit of 3 unrelated occupants.

2.    Do not revise the code and maintain a distinction between standard RS zoning (3 unrelated occupants) and PDs (4 unrelated occupants).

 

Staff recommendation – Revise the definition of Family to limit unrelated occupants to no more than 3 for the Detached Dwelling and Duplex housing types in PD zones and provide a grace period of 18 months for owners to comply with the revised code standard.

 

 

Issue 2, Rental Licensing:  Properties in a PD, even with base RS zoning, are currently not required to be licensed as part of the rental licensing program.  This was a by-product of adopting the 2006 Land Development Code; between 2001 and 2006 such structures were required to participate in the rental licensing program.  The question associated with Issue 2 is: Should all Detached Dwellings and Duplex rental units located in PDs be required to participate in the rental licensing program?

 

Relevant discussion points include:

1.    Currently the rental registration program is applied in RS zoning and primarily affects Detached Dwelling and legal, non-conforming Duplex and other housing types.  Detached Dwellings and Duplexes in RM zoned properties and PD zoned properties are exempt from the program, though properties in PD zoned areas were required to participate in the rental licensing program between the years of 2001 and 2006.

2.    The City Auditor’s performance audit of the rental licensing program highlights that Lawrence is unique in focusing narrowly on only a small portion of the rental housing in the city.  The audit also notes confusion related to the basis of the program on zoning compared to whether a unit is rented.  The audit reflected examples of “border effects” where two similar rental units existed next door or across the street, but one was licensed and one was not.  These examples would occur in areas zoned RS and PD under the current interpretation.

3.    The rental licensing ordinance was revised on January 10, 2012 to require that all housing structure types in RS zoned areas be required to participate instead of limiting the program to Detached Dwelling and Duplex.  The program remained applicable only in RS zoning. 

4.    An associated issue is that there has been discussion of expanding the program to either include all structure types in all zoning districts or include structures that are 50 years old or older located in any zoning district.

 

Options

1.    Revise the rental licensing ordinance so that Detached Dwelling and Duplex uses in any PD zoned area are required to participate in the rental program similar to how the program is administered in RS zones.

2.    Maintain the current codes so that rental licensing is only applicable in RS zoning and not in PDs.

 

Staff Recommendation – Revise the rental licensing ordinance so that Detached Dwelling and Duplex uses in any PD zoned area are required to participate in the rental program similar to how the program is administered in RS zones.

 

Action Requested

Direct staff as appropriate.