Spot Zoning Definition

What Is Spot Zoning?

Spot zoning describes the process of singling out a small parcel of land for a zoning classification that differs from the surrounding area. Factors like its compatibility with nearby zones and benefit to the public determine its approval.

Shortcuts

  • Spot zoning is when a parcel’s land use differs from the zoning of its surrounding area.
  • Generally, there is a stigma attached to spot zoning, but many jurisdictions require that spot zoning should be made for the greater good and not just for special treatment of a property owner.
  • Depending on the state, spot zoning occupies an interesting place in zoning regulations.
  • Some states allow it, like Texas, while others prohibit it, like Pennsylvania.

How Spot Zoning Works

To understand why spot zoning is needed and how it works, it pays to know what zoning is first.

x marks the spot

Local governments use zoning to regulate the use of land within their jurisdictions. Zoning divides the community’s land into different zones, each with expressly permitted land uses, such as residential, commercial, industrial, or agricultural.

These zones are reasonably self-explanatory. For example, people live in residential zones, where one can expect single-family homes, townhouses, apartments, duplexes, triplexes, trailer parks, condos, or co-ops[1]. Sometimes, home-based businesses are allowed as long as owners comply with restrictions.

Meanwhile, people work, shop, play, and party in commercial zones, while most manufacturing and raw material processing and storage happen in industrial zones. Finally, agricultural zones are where food for local consumption or export is grown or raised. They prevent farming communities from becoming more fragmented due to residential projects[2].

One less-known zone is a historic zone, which aims to preserve the conditions of districts and structures with great historical value[3].

riverfront road

Riverfront Road in Savannah, GA’s historic district (photo by Lvklock, CC BY-SA 3.0)

Zoning categories vary by location, so the symbols adopted by one county, city, or municipality can differ from those used by others.

Against this backdrop, spot zoning is sometimes used to address specific land use needs or development proposals that may not fit an area’s existing zoning regulations. For example, spot zoning can provide affordable housing by allowing for higher density or mixed-use development in a commercial zone.

While spot zoning can be controversial, addressing specific needs and promoting certain goals can be helpful. However, many jurisdictions require that spot zoning benefit the public as a whole[4], not simply for special treatment of a particular property owner.

Spot Zoning Laws: State Variances

Some states differ in enforcing or observing spot zoning, and some ban it entirely. Here are the most notable.

Texas

Spot zoning is illegal in Texas when one can prove it is arbitrary, unreasonable, and discriminatory and does not substantially relate to the public’s health, safety, morals, or general welfare.

The highest civil court in Texas has set four criteria to determine whether a city ordinance is considered impermissible spot zoning[5].

The Texas Local Government Code grants its municipalities the freedom to adopt zoning, provided the use is lawful and legal.

This is why neighboring cities in Texas may regulate land uses within their boundaries differently. Examples are zoning-free Houston and the zoned cities of Bellaire and West University Place[6].

downtown houston

Houston, Texas

Houston is a special case because the city itself has been zoning-free since its founding[7]. Instead, the Houston Construction Code defines the standards for building, maintaining, repairing, altering, and demolishing structures to help keep the public out of harm’s way[8].

Many homeowners use deed restrictions[9] as a buffer against unwanted development projects in their neighborhoods. Civic associations can enforce these agreements with the help of the local government.

This local quirk also makes investors listen to what the market says[10]. As a result, they set up shop where local demand is strongest, allowing residential and commercial land uses to mix organically.

BY THE NUMBERS: Houstonians have rejected city zoning ordinances three times since the 1920s.

Source: Mercatus Center

Florida

As in most of the U.S., spot zoning has a negative connotation in Florida. It implies that the rezoning ordinance benefits only one or a few private property owners at the expense of others.

Plus, spot zoning may defeat the purpose of zoning itself. Unless its proponents can defend that the rezoning decision is all for the community’s health, safety, and general welfare, it might most likely go against any wish of the city to control land uses within its jurisdiction.

California

Spot zoning is allowed in California as long as the rezoning serves the public.

Before 2014, spot zoning in California was generally considered impermissible unless it could be justified as serving the public interest, but the stance on development projects requiring rezoning was less absolute. However, one of the state’s intermediate appellate courts clarified[11] that it is acceptable when it is in the public interest, as shown in the record.

california street sign

To do this, a court needs to analyze the facts and ensure it has occurred. An example is when a small parcel of land has more or less restrictive zoning than the surrounding properties.

Second, the court reviews the opinion of the body that requests zoning change. If the body’s action is fair, logical, and supported by evidence, the court may approve the spot zoning request.

This 2014 case has encouraged many developers to pursue projects that can benefit the public (or at least will appear so in the record).

Pennsylvania

Pennsylvania rules that spot zoning is, in most cases, invalid[12].

Changes to zoning ordinances are legal in Pennsylvania until proven otherwise. Therefore, it is up to the challenger to argue that the move is unreasonable, arbitrary, and not beneficial to the community.

On top of that, the justification for an amendment should be compelling since it naturally makes a parcel different from its surrounding land. If there is not, the court will likely reverse it.

Sources

  1. Donofrio, C. (2015.) What Is a Co-Op? The Benefits and Drawbacks to Cooperative Housing. Realtor.com®. Retrieved from https://www.realtor.com/advice/buy/the-basics-of-co-op-housing/
  2. Wernick, A. (2020.) US lost 11 million acres of farmland to development in past 2 decades. The World. Retrieved from https://theworld.org/stories/2020-08-07/us-lost-11-million-acres-farmland-development-past-2-decades
  3. Olito, F. (2019.) The most beautiful historic place in every state. Insider. Retrieved from https://www.insider.com/beautiful-historic-districts-us-2019-9
  4. Brennan, M., Burrowes, K., & Peiffer, E. (2019.) How Zoning Shapes our Lives. Housing Matters. Retrieved from https://housingmatters.urban.org/articles/how-zoning-shapes-our-lives
  5. Wilson, R. (2002.) Fundamentals of Zoning. Wilson Cribbs + Goren. Retrieved from https://wcglaw.com/sites/default/files/publications/1092085219_Fundamentals-of-Zoning-2-12-02.PDF
  6. Marrow, H. (2021.) As Houston’s housing stock evolves, smaller cities see redevelopment. Community Impact. Retrieved from https://communityimpact.com/houston/bellaire-meyerland-west-university/housing-real-estate/2021/07/02/as-houstons-housing-stock-evolves-smaller-cities-see-redevelopment/
  7. Ramirez, F. (2016.) The weirdest images to come from Houston’s lack of zoning laws. Chron. Retrieved from https://www.chron.com/news/houston-texas/houston/article/Weirdest-images-from-Houston-s-lack-of-zoning-laws-9171688.php
  8. Houston Permitting Center. (n.d.) Codes. Retrieved from https://www.houstonpermittingcenter.org/help/codes
  9. City of Houston. (n.d.) Deed Restrictions. Retrieved from https://www.houstontx.gov/legal/deed.html
  10. Saltzman, J. (1994.) Houston Says No to Zoning. Freedom for Economic Education. Retrieved from https://fee.org/articles/houston-says-no-to-zoning/
  11. FOOTHILL COMMUNITIES COALITION v. COUNTY OF ORANGE. (2014.) Court of Appeal, Fourth District, Division 3, California. FindLaw’s California Court of Appeal case and opinions. Retrieved from https://caselaw.findlaw.com/ca-court-of-appeal/1654702.html
  12. Centre Regional Planning Agency. (n.d.) An Overview of Common Zoning Validity Challenges and Methods for Improving the Defensibility of Zoning Ordinances, p. 12. Retrieved from https://www.crcog.net/vertical/sites/%7B6AD7E2DC-ECE4-41CD-B8E1-BAC6A6336348%7D/uploads/Zoning_Validity_Challenges_Handbook.pdf

Bonus: Get a FREE copy of the INVESTOR HACKS ebook when you subscribe!

Free Subscriber Toolbox

Want to learn about the tools I’ve used to make over $40,000 per deal? Get immediate access to videos, guides, downloads, and more resources for real estate investing domination. Sign up below for free and get access forever.

Scroll Up

Welcome to REtipster.com

We noticed you are using an Ad Blocker


We get it, too much advertising can be annoying.

Our few advertisers help us continue bringing lots of great content to you for FREE.

Please add REtipster.com to your Ad Blocker white list, to receive full access to website functionality.

Thank you for supporting. We promise you will find ample value from our website. 

Loading