Checklist for Chaka 2

 Land location map,

 area, and coordinate

 Affection plan,

 What Is the Affection Plan?

An affection plan is an official document outlining the development of a land plot. It
provides essential details such as the plot number, territory size, existing and potential
buildings, and layouts for the proposed construction on the site.
Furthermore, an affection plan must clearly specify the purpose of the land plot, which
can be categorized as either industrial land or mixed-use land. The designated use type
must align with the intended buildings to be constructed. For instance, residential
properties or malls cannot be built on industrial lands, and vice versa. Changing the
purpose of the plot is a complex process that requires careful consideration. In the
Emirates, the implementation of reasonable zoning plays a pivotal role in urban
development.
An affection plan typically includes the following information:

 The location of the property

 The size of the land
 The placement of any buildings or structures
 The location of common areas, such as swimming pools or playgrounds
 The dimensions of the property
 The boundaries of the property
 The location of any public utilities, such as water or sewage lines

Redline and blue lines


 building zone regulations

 1. Introduction to Zoning Regulations and the Urban Development Act

 Zoning Regulations

 Introduction to Zoning Regulations:

 Zoning regulations are a crucial aspect of urban development. They play a vital role in

controlling land use, development, and construction in a city or town. These regulations

are implemented to ensure that land is used efficiently and appropriately, and that

development is in harmony with the surrounding environment and community.

 Zoning regulations can be complex and vary from city to city. They can cover a wide

range of issues, including building heights, setbacks, parking requirements, use of land,

and density. These regulations are typically enforced by local governments, such as city

councils, planning commissions, and zoning boards.

 Insights from Different Points of View:

 From the perspective of urban planners and policymakers, zoning regulations are

essential to ensure that development is sustainable and in the best interest of the

community. They help to prevent overcrowding, protect the environment, and promote

economic growth.

 From the perspective of developers and property owners, zoning regulations can be seen

as restrictive and limiting. They may feel that the regulations make it difficult to build

and develop properties, which can increase the cost of construction and reduce the

potential for profit.

 From the perspective of residents, zoning regulations can be seen as a way to protect their

quality of life. They may appreciate regulations that limit the height of buildings or

prevent the construction of certain types of businesses in their neighborhood.

 Numbered List of In-Depth Information:

 1. Types of Zoning Regulations: There are several types of zoning regulations, including

residential, commercial, industrial, and mixed-use. Each type of zoning has its own set of

regulations and requirements.

 2. Zoning Map: A zoning map is a visual representation of the different zoning areas in a

city or town. It shows the location of residential, commercial, and industrial zones, as

well as any special use areas.

 3. Zoning Codes: Zoning codes are the laws and regulations that govern land use and

development in a particular zone. They specify the allowable uses for a property, the size

and height of buildings, setbacks, and other requirements.

 4. Zoning Variances: Zoning variances are exceptions to the zoning regulations. They

may be granted to property owners who can demonstrate that the regulations would cause

undue hardship or that their property is unique.

 5. Zoning Changes: Zoning changes occur when a city or town modifies the zoning

regulations for a particular area. This can happen in response to changing community

needs or to promote economic development.

 Examples:

 An example of zoning regulations in action can be seen in New York City's zoning laws.

The city's zoning map divides the city into residential, commercial, and manufacturing

districts. Each district has its own set of regulations, including height and setback

requirements, density limits, and allowable uses.

 Another example can be seen in Portland, Oregon's zoning regulations. The city has

implemented a mixed-use zoning code that encourages development that combines

residential and commercial uses. This has led to the creation of vibrant neighborhoods

that are walkable and easily accessible to public transportation.

 Comparison of Options:

 One of the challenges of zoning regulations is finding the right balance between

promoting development and protecting the community. Some cities may have more

restrictive zoning regulations, while others may have more lenient regulations.

 The best option for a particular city or town will depend on a variety of factors, including

community needs, environmental concerns, and economic goals. Ultimately, the goal
 should be to create zoning regulations that promote sustainable development and enhance

the quality of life for residents.

 Conclusion:

 Zoning regulations are an essential aspect of urban development. They play a critical role

in controlling land use, development, and construction in a city or town. By

understanding the different types of zoning regulations, the zoning map, zoning codes,

zoning variances, and zoning changes, cities and towns can create regulations that

promote sustainable development and enhance the quality of life for residents.

 surrounding urban fabric components

 Market review and assessment to determine the High and Best Use (HBU),

4 Criteria That Highest And Best Use Must Meet

Highest and best use isn’t some vague notion that property investors feel in their gut. Instead, the
concept is well-defined so that investors, owners, buyers, sellers, managers, and real estate
agents can effectively discuss this appraisal type.

Specifically, HBU must meet four formal criteria: legal permissibility, physical possibility,
financial feasibility, and maximum profitability.,

Legal Permissibility
Before any other factor, the use of a property must be legally permissible. This means it should
comply with zoning laws, environmental regulations, building codes, and any other legal
restrictions that apply to the property.

The most common legal permissibility issues are zoning regulations and, to a lesser extent,
building codes. Investors looking at specialized properties (e.g. properties with hazardous
materials, properties for logging, etc.) and/or buildings in areas with high population densities
might have additional restrictions to check.

Investors with common (e.g. multifamily) properties in unincorporated areas have very few
regulations to consider.

Analyzing local, state and federal legal restrictions ensures the proposed use of a property won’t
have to stop operations due to some law or regulation.

Physical Possibility
The property must be physically capable of supporting the intended use. For example, a
skyscraper may not be physically possible on a small, narrow plot of land. The physical
constraints of the property, including size, shape, terrain, and location, among others, should be
carefully evaluated to assess physical possibility.

Again, physical possibility is often inconsequential if a property is to have a smaller building on

a basic plot of land.

If a property is to have large buildings, specialized buildings or specialized operations, however,

physical restrictions require more consideration. Not only must investors consider any buildings,
but also how operations will be conducted and how the property will be accessed.

Financial Feasibility
An intended use that is both legally permissible and physically possible must also be financially
feasible.

The cost to develop or change the property should not exceed its potential income or resale
value. If a proposed use isn’t financially viable, it doesn’t qualify as the highest and best use
because that wouldn’t ultimately provide the best returns.

Importantly, an investor’s financial resources don’t necessarily limit financial feasibility. The
feasibility is primarily determined by whether the returns would exceed the costs, regardless of
what investor pays those costs. Appraisals aren’t based on investors, but properties and
possibilities in this case.

Maximum Profitability
Among all feasible uses, the highest and best use is the one that generates the greatest net return
over a period. The goal is not just to make the property usable, but to ensure it brings
in maximum profitability for the investor.
Profitability may come in the form of revenues, appreciation or other increases in value.

Examples Of How Highest And Best Use Is Applied

How highest and best use is determined depends on the type of property being appraised. The
following gives some examples of how investors might evaluate HBU.

Highest and Best Use on Vacant Land

For vacant land located in rapidly developing residential areas, the highest and best use may be
to develop the land as multi-unit residential or mixed-use. Zoning laws (legal permissibility),
location (physical accessibility) and market demand (financial feasibility) are some major
considerations.
If the vacant land is in an undeveloped and rural area, the HBU may be agricultural, logging,
manufacturing or some similar use. Physical possibility is a major consideration, as the
topography of, resources on, and accessibility to the land are determinants.

Highest and Best Use on Improved Property

For improved properties, the HBU may involve repurposing the building. A warehouse in a
gentrifying neighborhood might be more valuable if converted into lofts or a shopping center. A
dilapidated multifamily building might still be best used as housing, but HBU could be affected
by how the property is renovated.

Local zoning laws can factor in when changing property use, such as warehouse to housing.
Otherwise, financial feasibility and maximum profitability are primary considerations.
Highest and Best Use on New Construction
In the case of new constructions, the HBU could be determined by the prospective demand for a
certain property type. For example, in an area where office spaces are in high demand, the HBU
for a new construction project might be a commercial building rather than a residential one. That
could be another office building or a different commercial property that serves all the workers in
the area.

Financial feasibility and maximum profitability are primary considerations, as local zoning laws
are less of an issue if a similar building is being constructed.

When multifamily housing is being built, maximum profitability will be impacted by the number
of units, type of units, and whether commercial spaces are included in the development. This can
involve zoning laws and maximum profitability.

Breaking Down The Four Tests of Highest and Best Use (HBU)

Lowery Property Advisors, LLC

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September 6, 2023

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Traditionally, commercial appraisers have followed a four-step process to determine a

subject property’s HBU. Each of these steps can also be considered a test, and each test
can be expressed as a question the appraiser sets out to answer. In the article below, we
will illustrate how these “tests” are employed and the possible implications in
determining value.

Test #1: What Is Physically Possible?

HBU is contingent on what is “physically possible.” Location, topographic features (e.g.,

exposure to flood risk), access to infrastructure, and a building’s own condition and
dimensions all impose constraints within which the appraiser must operate when
assessing what a property’s highest value might be — and how it might realize that
value.

Test #2: What Is Legally Permissible?

Appraisers typically research five areas when verifying the legality of a potential
property use. Those areas are:

1. Land use regulations.

2. Zoning.
3. Building codes.
4. Restrictive covenants.
5. Easements.

Test #3: What Is Financially Feasible?

Ultimately, a property’s highest and best use must meet two criteria:

1. It must generate enough revenue to cover the costs of construction and/or property
improvements.
2. It must generate enough revenue to turn a profit.

Test #4:nbsp;What Is Maximally Productive?

Recall that a property’s highest and best use must meet two criteria:

1. It must generate enough revenue to cover the costs of construction and/or property
improvements.
2. It must generate enough revenue to turn a profit.

The final test appraisers apply in establishing HBU pertains to this second question.
By this stage of the process, the appraiser will have narrowed the field of possible
property uses to a handful of top candidates. They then rank these proposed uses and
identify which qualifies as the HBU based on its productivity, typically measured in terms
of the revenue generated by rent changed to building occupants.

All that being said, HBU cannot be reduced to a number. HBU is both quantitative and
qualitative. HBU is dependent upon the stakeholders involved, the actions they take, and
the timing of those actions. So, although there is often little overlap between the
property buyer and the tenants occupying that property, both parties are major
characters in the HBU narrative.

Windows of opportunity can open and close unpredictably in today’s commercial real
estate market. Whether you’re a buyer, seller, lender, or investor, the most accurate and
up-to-date data is more valuable than ever.

That’s why LPA’s valuation experts, including the members of our dedicated research
team, always stay proactive, taking extraordinary measures to ensure their reports
contain credible — and actionable — business intelligence.

Contact us today to learn how we use our tech-enabled innovative tools, analytical
acumen, and dedication to excellence to help clients make the most informed and
timely decisions about their real property assets.

1. Real Estate Development

Step 1: Identify the potential uses

The first step is to brainstorm all the possible uses of the site that are consistent with the zoning,
regulations, and market demand. For example, if you have a vacant lot in a residential area, you
might consider building a single-family home, a duplex, a townhouse, or a small apartment
complex. You can also look at the surrounding properties and see what uses are dominant or
missing in the area. You can use tools such as Google Maps, local planning documents, and
market reports to help you with this step.
Step 1: Identify the potential uses

The first step is to brainstorm all the possible uses of the site that are consistent with the zoning,
regulations, and market demand. For example, if you have a vacant lot in a residential area, you
might consider building a single-family home, a duplex, a townhouse, or a small apartment
complex. You can also look at the surrounding properties and see what uses are dominant or
missing in the area. You can use tools such as Google Maps, local planning documents, and
market reports to help you with this step.

When determining the highest and best use of a site one should consider existing zoning,
proposed re-zoning, chances of approval of variance, neighborhood transition, and needs
of the neighborhood. Regardless of existing zoning there is a good chance that a re-
zoning or variance application would be approved if residential land is transitioning to
commercial use as evidenced by multiple instances of adjacent new commercial
development.
Step 2: Analyze the feasibility

The next step is to narrow down the list of potential uses by evaluating their feasibility. This
means assessing whether each use is financially viable, technically possible, and legally
permissible. For example, you might have to calculate the development costs, revenues, and
returns for each use, as well as consider the site constraints, environmental issues, and design
standards. You might also have to check the zoning codes, permits, and approvals required for
each use. You can use tools such as spreadsheets, financial models, and feasibility studies to help
you with this step.

Step 3: Compare the alternatives

The third step is to compare the feasible uses and rank them according to their value. This means
estimating the market value of each use based on the sales or rental prices of similar properties in
the area. You can use tools such as comparable sales analysis, income approach, or residual land
value method to help you with this step. The use that has the highest market value is the HBU of
the site.

Step 4: Test the sensitivity

The final step is to test the sensitivity of the HBU to changes in the market conditions,
assumptions, or risks. This means evaluating how the market value of the HBU would vary if the
demand, supply, or costs of the use change. You can use tools such as scenario analysis,
sensitivity analysis, or risk analysis to help you with this step. The HBU should be robust and
resilient to these changes, or else you might have to reconsider your choice.
By following these four steps, you can identify and evaluate the HBU of a site and make
informed decisions about your real estate development project. HBU is not a fixed or static
concept, but rather a dynamic and flexible one that depends on various factors and
circumstances. Therefore, you should always monitor and update your HBU analysis as the
market evolves and new opportunities arise.

 Any studies done related to Land

Validation/Due Diligence
Professional need
 Lawyers
Surveyors

1. Legal Scrutiny:

- Title Search: Begin by examining the property's title. Is it free from encumbrances, liens,

or legal disputes? A clean title ensures a smoother transfer.

- Zoning and Land Use: Understand local zoning regulations. Is the land zoned for residential,

commercial, or agricultural use? Are there any restrictions?

- Easements and Rights-of-Way: Investigate any existing easements or rights-of-way that might

affect your intended use of the land.

2. Physical Assessment:

- Site Visit: Walk the land. Observe its topography, drainage patterns, and neighboring

properties. Is it prone to flooding or other natural hazards?

- Environmental Factors: Assess soil quality, water sources, and potential contamination. For

instance, if you're eyeing agricultural land, soil fertility matters.

- Utilities and Infrastructure: Check proximity to utilities (water, electricity, sewage).

Consider road access and connectivity.

3. financial Due diligence:

- Cost Analysis: Calculate the total cost of acquisition, including purchase price, taxes, legal

fees, and any necessary improvements.

- Market Research: Understand the local real estate market. What are comparable land prices?

Is there potential for appreciation?

- Income Potential: If you plan to develop or lease the land, evaluate its income-generating

capacity.

th2. Urban Development Parcel

- Scenario: You're eyeing a vacant lot in a growing city.

- Due Diligence Steps:

- Zoning Verification: Confirm the land's zoning allows for residential or mixed-use

development.

- Infrastructure Check: Assess road access, sewer lines, and proximity to schools or hospitals.

- Future Development Plans: Research nearby projects (new highways, commercial centers).

- Example: You find out that the city council plans to extend public transportation to your

area, potentially boosting property values.

Remember, due diligence isn't a one-size-fits-all process. Tailor it to your specific goals and seek

professional advice when needed. By doing so, you'll minimize risks and maximize your chances

of making a sound investment.

 Site survey (initial or a detailed one)

 Preliminary geotechnical survey (if possible)

 Infrastructure requiring utilities connection points

 External constraints (restrictions, weakness, threats)

 Ownership limitations

 Environmental issues (if any)

 Zoning and subdivision requirements

 Any investment appraisal done previously (date?)

 Any pre-vision / test fit Masterplan study?