ummy gift 7/30196 3 The forms and instructions in this pamphlet were developed to facilitate the above uses of the LUI scale and the related intensity standards. FHA field offices apply them as guides in their analysis of all proposals for multifamily housing and planned-unit developments. The two forms on building program and LUI of a plan are also available to sponsors for their optional use. They are time-saving technical work sheets. The LUI measurement of a project plan (Form 1029) is accurate, scientific and mechanical. It requires little or no judgment. However, the LUI analysis of a site (Form 1095) and the programming of a project (Form 1028) are not mechanical. They draw on experience, wisdom and judgment in evaluating data on the site, its community and the market. The basic data on land-use intensity are in the Minimum Property Standards for Multifamily Housing and in Land Planning Bulletin 7, Land-use Intensity (issued in an interim edition dated September 1963). Distribution of the interim Bulletin 7 and this Forms pamphlet is closely limited pending issuance of Bulletin 7 in formal edition. The instructions and forms in this pamphlet supplement the Multifamily MPS and FORM 1095, LAND-USE INTENSITY OF SITE Purpose Prepared by Number Distribution -To provide an orderly procedure and guide for determining the -Qualified members of the valuation, land planning and architec- -Original, plus a machine duplicate of completed form. -Original copy is placed in the Subdivision file or the multi- GENERAL The determination of the appropriate land-use intensity number of a proposed site sets forth, by the use of the MPS intensity chart, the appropriate land-use intensity standards for the site. This represents the maximum intensity FHA will accept for the site for current development. The appropriate number for a site must be selected with utmost care, as the measuring scale is very sensitive, reflecting a major change in the relationships with a minor change on the scale. Form 1095, Land-use Intensity of Site serves as a guide in making such land-use intensity determinations. It is not a crystal ball. A thorough knowledge of all the pertinent physical and market facts relating to the site is necessary, as well as experience, wisdom and sound judgment. Use of the form presupposes a knowledge of the physical, geographical and economic characteristics of the community and its probable future growth pattern. Considerations of location, building type and density are major steps in the LUI analysis. Background data regarding existing conditions and development trends are studied. Of the two, the latter has far more significance. Tentative intensities. proposed on the basis of analysis of the data, are checked against the intensities of existing similar successful projects. They are also checked by the insuring office staff employing good judgment, experience and common sense. The relatively wide range of land-use intensity found in the first step on the form is progressively adjusted in each of the following steps, until the appropriate land-use intensity number has been determined. Final selection of the LUI number is made by the Chief Underwriter. Illustrations 1 through 5 show the use of the form in the determination of the LUI of a hypothetical proposal, a small site suitable for townhouse development. A more complex example showing the LUI determination for a large site suitable for several different building types is in Illustration 6. The procedural form in itself, will not assure that the LUI found by its use will promise the development of a project that is the realization of the site's highest and best use. Judgment based on knowledge and experience must rule throughout the process of determining the LUI of a site. In the end the practicability of the FHA-selected LUI must be judged in this light. If sound judgment conflicts with tentative conclusions, appropriate adjustment is made. The LUI determined for the site must be consistent with sound judgment, the provisions of Chapter III of the Multifamily MPS and the principles of Bulletin 7. It must be consistent with sound real estate judgment regarding the appropriate improvement of the site for the anticipated occupancy as indicated by the market. Appropriate land-use intensity, by itself, does not assure good design, or a successful project. However, it does provide a framework within which they may be achieved. Density and other local zoning provisions applying to a site are convertible to an approximation of an LUI number. Any such LUI equivalent represents only the maximum intensity permitted by the local zoning ordinance; lesser intensity, of course, is permitted. The site's LUI number for FHA mortgage insurance purposes may be much lower than the zoning maximum because the FHA number is based on different considerations; see FHA Manual 70410. Basic FHA policy and procedures on local planning and zoning regulations and on coordination with local authorities are in Manual paragraphs 70407 70412; 70507 and 70545. FHA does not knowingly assign an LUI number at a higher intensity than the equivalent of the applicable local zoning maximum, except for a planned-unit development, Many zoning ordinances do not yet have provisions for routine processing of planned-unit developments as defined in Land Planning Bulletin 6. FHA representatives may confer with local authorities at the earliest stage of a PUD, especially if the proposal may be in conflict with the applicable zoning for the site. FHA confers with the local authorities to explain: 1. FHA's encouragement of the general concept of planned-unit development presented in Bulletin 6; 2. FHA's desire to avoid involvement in any local controversy about 3. FHA's desire to avoid misunderstanding regarding the time-saving purpose of FHA's simultaneous processing of a planned-unit development while others are working on the zoning; and 4. desirability for local authority to amend its zoning ordinance to include a general provision for routine processing of any plannedunit development. FHA coordinates its PUD processing with the activities of the local authorities to avoid misunderstandings and controversy. FHA may release its LUI number even though higher than the then applicable local zoning equivalent if the local authority is considering a regulatory change and does not object to the release of the FHA number in advance of local decision on the proposed change. A Subdivision Report, however, is issued only if and when the development proposal is persmissible under the then applicable zoning. Special considerations apply in an urban renewal area involving federal financial assistance for renewal activities. Reflecting the policy statement contained in the Commissioner Letter No. 27, the planning process in an urban renewal area is expected to produce plans which are practical for industry and FHA to carry out. The land-use intensity process in such urban renewal areas is as follows: In an urban renewal area for which the local governing body has adopted or will adopt an urban renewal plan, the land-use, densities and other conditions contained in the urban renewal plan will prevail. In making a landuse intensity determination for all or a part of an individual disposition parcel, the FHA determines an LUI number consistent with the provisions of the urban renewal plan. Where appropriate, one or more numerical ratios set by an LUI number on the MPS intensity chart may be modified as a variation for a specific case as authorized in MPS-M202. Such variation for specific cases supplements the basic flexibility inherent in the FHA Standards for land-use intensity. STEP 1 RELATE SITE TO COMMUNITY TYPE AND PATTERN la The Multifamily MPS requires that Land-use intensity "shall be appro- The conclusions in this step are general rather than specific. A table and chart in Step 1 of Form 1095 show intensities of communities See Illustration 1 for an example of the use of Step 1 on the form. Urban Area and Benchmark Communities: Sub-step la involves back- determines the data in accordance with footnotes 1 and 2 below and establishes them by memorandum to his staff. The LUI analyst of a proposed site writes the Chief Underwriter's data in sub-step la of the form and uses them for comparisons in lb. The urban area considered in the analysis is (1) an entire metropolitan area including outlying communities and undeveloped sections or (2) a smaller urban area not a part of a metropolitan area. 1The Chief Underwriter determines the data for the urban area as follows: A metropolitan area for these purposes includes the entire area defined as a Standard Metropolitan Statistical Area (SMSA) by the U.S. Bureau of the Budget. In a U.S. Census publication cited below a metropolitan area is described as follows: "Except in New England, an SMSA is a county or group of contiguous counties which contains at least one city of 50,000 inhabitants, or more, or "twin cities" with a combined population of at least 50,000. In addition to the county, or counties, containing such a city or cities, contiguous counties are included in an SMSA if, according to certain criteria, they are essentially metropolitan in character and economically integrated with the central city. In New England, SMSA's consist of towns and cities, rather than counties." All metropolitan areas and their civil divisions are listed in the U.S. Bureau of the Census report entitled "Current Population Reports, Standard Metropolitan Statistical Areas in the United States as Defined October 18, 1963". (Technical Studies, Series P-23, No. 10; December 5, 1963). A copy has been supplied to each insuring office. with this forms pamphlet. In sub-step la of Form 1095, the entire metropolitan area is considered as including all outlying communities and undeveloped sections within the defined SMSA. For use in la(2) and la(3) the above SMSA publication contains data on the 1950 and 1960 population and the percentage increase for each metropolitan area. Subsequent data are used if available elsewhere. The growth trends to be shown in la(4) are determined from data on population and economic growth from the Bureau of Census, local planning commissions and other informed sources. FHA market analyses also provide data and information on these trends, including estimates and short term projections, as well as the factual data for selected past years, on population, households, and employment. Where a site is located outside an SMSA, the urban area in la is a non-metropolitan area, and usually consists of a county or a part of a county. It is identified by the name of its principal urban community or otherwise as locally appropriate. |