Land Use & Zoning
What is 'downzoning' and how can it affect property values in Illinois?
ARezoning land to allow more intensive uses; typically increases property values
BRezoning land to less intensive uses (e.g., commercial to residential); may reduce a property's highest and best use and value✓ Correct
CRemoving all zoning restrictions from a property; always increases value
DA zoning change that applies only to properties under $500,000 in value
Explanation
Downzoning changes a property's classification to allow less intensive uses—for example, from commercial to residential, or from multi-family to single-family. This can reduce the property's development potential and market value.
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Key Terms to Know
Zoning
Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
VarianceOfficial permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Math Concepts
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