In December 2004, the City of Los Angeles adopted changes to its zoning codes to allow the construction of new "fee-simple" town homes in areas zoned for apartments or commercial development. Previously the City’s zoning code prohibited the development of town homes unless they were part of a condominium association.

The new town home or small lots ordinance permits detached homes on small lots, town homes, and row houses where the home owner would own both the land and structure fee simple. This change makes town homes a more attractive and affordable option for home buyers. Many cities across the country have popular neighborhoods with row houses or brownstones that are built on a town home model.

Why do we need town homes?
Although the home ownership rate has climbed across the nation to 67%, it has remained stagnant in Los Angeles at 39%. Home prices have risen dramatically in the past few years with the median priced home reaching $440,000 in mid 2004. In 1999 the City Council created the Housing Crisis Task Force, which brought together housing experts to look comprehensively at the housing problem and recommend measures to increase production. Among the Task Force's recommendations was to create more affordable home ownership opportunities through innovative land use such smaller lot sizes as set out in the town home ordinance.

Condominium development has, in the past, offered an entry into home ownership for many Los Angeles families. However, in recent years the exorbitant cost of construction defect liability insurance associated with condominium homeowner associations has hampered condominium development. Since town homes are constructed on separate lots with no common walls or foundations, such associations are not necessary, thereby reducing insurance costs which can run over $20,000/unit.

What are the specifics of the new town home ordinance?
The ordinance permits town homes in areas that allow multifamily buildings (apartments or condominiums) by reducing the minimum lot size and side yard requirements. The proposal would also apply in most commercial zones. The lot size and side yard requirements in single family zones, including R1 & R2 would not change.

The new ordinance is posted on the web at www.cityofla.org/PLN, under Selected Ordinances & Reports, Adopted Ordinances, Town home.

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