|Fall Real Estate 2002
Publication Date: Wednesday, October 16, 2002
The razer's edge
by Susan Golovin
Have you had the experience of passing by an empty lot and trying to remember the house that once existed there? Our neighborhoods are changing -- largely because more and more people are choosing to either tear down an existing home or remodel more than 50 percent of a home, thus making it subject to the same regulations as new construction.
"It's Econ 101," said architect John Northway of Stoeker
and Northway Architects in Palo Alto, who co-chaired the committee
that devised the R-1 regulations, the zoning ordinances that cover
single-family residences in Palo Alto.
"Because of the price of land, people are looking for a house
that is fully built out, that takes advantage of the total floor
area you can build in relation to the size of the lot," he
Those looking for property with the potential of tear down or major
remodeling have a number of things to consider: building codes,
zoning codes, needs and budget. Most architects say they can be
most effective if they are involved with these projects "on
the ground floor."
Northway advises that the first thing a prospective buyer should
do is become familiar with all the zoning regulations and entitlements.
"Ask them (in the planning department) about your neighborhood.
They are very knowledgeable and helpful," he said.
"Most basically, you need to know the size of the lot and
the total size of the house you can build there," he said.
"You also need to know the size of the existing structure because
sometimes it is larger than what current zoning would allow -- that
is, if you take it down, you cannot build as large a home.
"This also applies to setbacks (the distance the structure
must be from property lines). Sometimes the current home is infringing
on current setbacks. A new home will have to comply with current
law," he added.
"You don't want to buy a home that is in good shape and then
spend $250 per square foot adding on to it thereby pricing yourself
out of the market," said Palo Alto architect Tony Carrasco
of Carrasco and Associates. "Resale value is a factor."
"Developers always tear down rather than remodel because it's
cheaper," said Northway, but that depends on what one starts
with and what one wants to achieve.
In Palo Alto single-story overlay zones are sometimes a factor.
Whole swaths of the city, notably the Eichler neighborhoods, limit
construction to one story. The regulations in these areas do allow
for a larger footprint, but this of course decreases the size of
In fact, building a second story anywhere in Palo Alto now requires
an Individual Review Process. "Issues such as privacy, sunlight
and compatibility with the neighborhood are considered," explained
Carrasco. "If you are remodeling, you probably can't remodel
a second story to its fullest extent because the new roof will have
to be pitched lower to allow more light for the neighbors."
Owners can expect this review process to take a minimum of 30 to
40 days, and, if a hearing is requested, up to two months. Appeals
can add another layer of complexity. And, of course, there are fees:
$1,000 for a new two-story house or a new second story, and $350
for an addition to an existing second story (that exceeds 150 square
In addition, there are other fees to consider: A building permit
fee, based on the value of the home, can easily come to several
thousand dollars. Also, Palo Alto school impact fees are assessed
at $2.14 per square foot of net new area. Property taxes are determined
by the county tax assessor.
"Better check out the tree preservation ordinance," Northway
said. "It can be more restrictive than the zoning ordinances."
Said rules apply mostly to heritage redwoods and coast live or valley
oaks and provide that structures must be a certain distance from
their drip lines. This can have a major impact on the placement
of the home on the lot.
"In cases where the trees are close to the fence, you even
need to consider the trees on your neighbor's property," said
Palo Alto architect John Barton.
Many people like the idea of a flag lot, where the major part of
the lot is set back from the street with a long driveway (the "pole")
leading to the street. However, the pole doesn't count in the total
calculation of area -- and, in Palo Alto, in order to preserve neighbors'
privacy, you cannot build a two story home on a flag lot.
Similarly, if your lot is substandard in size as defined in the
regulations, you must limit to one story.
"You need to know if you are in a seismic activity zone,"
said Barton. "Large parts of Palo Alto may be susceptible to
liquefaction in the event of an earthquake. This will affect not
only the seismic design of the home, but also insurance costs."
More common is the knowledge of the flood hazard zones in Palo
Alto and parts of Menlo Park. "New construction in these areas
requires that you be above the base flood elevation," said
Barton. "You cannot build a basement. You also need to consider
that if the house is elevated it will affect the maximum height
-- you don't get extra. And, in some cases, you need to consider
what your elevated first floor will be looking on to, just as you
would with a two-story." Added insurance costs also apply.
"Most of the utility connections (gas, water, etc.) are probably
undersized," said Barton. "It helps to think of that early
Indeed, Northway said, "Allow two and a half to three years
for construction if you are building a large (6,000-square-foot)
home. It is an extremely complex undertaking involving high-tech
air conditioning, lighting, wiring for home-theater equipment and
For less ambitious projects, both Carrasco and Barton say to allow
for 12 to 18 months. "Remember that the permit process can
take up to eight months in Palo Alto," added Barton.
In Palo Alto you also have to be aware of historic residences,
structures built before 1940 or those that are on the city's Historic
Inventory. Such residences may be subject to special regulations
and extensive remodeling or deconstruction may require a hearing.
On a very practical note, Barton said, "You have to live somewhere.
Be sure to allow for rent or mortgage payments for your present
situation, as well as for the payments on the new purchase. It can
get pretty expensive."
Many owners have tried to donate their tear downs. This is yet
another phenomena in the Palo Alto area: whole houses being relocated.
"The cost of moving a house is quite high, and you have to
consider such things as compatibility with a new neighborhood, and
lot orientation," said Carrasco.
Not to mention all those regulations...