2.3.2.3.8. Zoning and Other Land Use Regulations. Identify the zoning for the subject property. This must be reported in descriptive terms (e.g., multifamily residential, 5000 sq. ft. of land per unit) rather than by zoning code (e.g., MF-2). Other local land use regulations that have an impact on the highest and best use and value of the property, including setback requirements, off-street parking requirements, and open space requirements must be reported. The appraiser should also note any master or comprehensive land use plan in existence that may affect the utility or value of the property. 

If the property was recently rezoned, that must be reported. The appraiser must determine whether such rezoning was a result of the government’s project for which the subject property is being acquired. If so, the appraiser must justify this conclusion and disregard the rezoning.126 If the rezoning of the property is imminent or probable, discuss in detail the investigation and analysis that led to that conclusion under Section 2.3.3.1 (Highest and Best Use).127 The mere assertion by an appraiser that a property could be rezoned is insufficient.128 In addition to zoning, the appraiser must identify all other land use and environmental regulations that have an impact on the highest and best use and value of the property.129 The impact of the regulations must also be discussed in the highest and best use analysis. The appraiser must also discuss the impact of any private restrictions on the property, such as deed and/or plat restrictions.

126 For the legal basis for this standard, see Section 4.5.3. Under USPAP, invocation of this standard would result in an appraisal prepared under a hypothetical condition.
127 For a discussion of the extent of the required investigation that must be taken by the appraiser in this regard, see Section 1.3.1.3.
128 See Section 1.3.1.3.
129 See Section 1.3.1.3.