This is a zone change that will amend several sections of the Billings, Montana, City Code (BMCC) regarding lot area requirements for dwelling units, elimination of references to townhomes or townhouses, deleting the requirement for additional side setbacks in the Residential 5,000 (R-50) zone and removing the zero lot line references. The current code can cause confusion in interpretation when multiple dwelling units exist on undivided lots. Past interpretation is that each detached “dwelling unit” requires the minimum lot area even though the detached units are not separated by a lot line. There are many unit ownership developments in Billings. Several of those developments consist entirely of single detached dwelling units and in some cases 2 single detached dwelling units on 1 undivided lot.

The proposed amendments to Section 27-305 would allow the lot area for attached or detached dwelling units to remain the same for the “two units” configuration. The amendment proposes to eliminate references to townhomes or townhouses as a specific use in response to recent legislative changes. The amendment also removes the requirement for additional side setback – 10 feet – in the R-50 zone if no alley exists. There are very few R-50 zoning districts and this additional side setback is unnecessary if the lots are well designed. The amendment proposes to eliminate allowances for zero lot lines because these are only used in reference to townhomes. The City Zoning Commission initiated this amendment on February 7, 2012. The Zoning Commission conducted a public hearing on March 6, 2012, and is forwarding a recommendation of approval on a 4-0 vote.

The City Council may:
1. Approve the zone change
2. Deny the zone change
3. Allow withdrawal of the zone change
4. Delay action for up to thirty (30) days

There should be no direct financial impact from the proposed text amendments on the City. The amendments may have a positive financial affect by stabilizing and encourage re-investment in older neighborhoods.

Lot Area for Residential Dwelling Units
The current code has caused confusion in interpretation in particular where 2 dwelling units exist on a single undivided lot. This proposed amendment strongly supports the recently adopted Infill Policy since it allows land owners more efficiency in unit development and could open several vacant parcels in the R-80, R-70, R-60, R-50, RMF and RMF-R to development that may not be cost effective under current code. The proposed amendment also supports the need for a variety of housing types throughout Billings since a land owner could build a combination of single dwelling units – attached or detached – without devoting additional area for the detached units. Existing neighborhoods in Billings Original Town, North Elevation, West Side Addition, Yellowstone Addition, North Park and Suburban Subdivision will also benefit by increasing the owner's ability to sell and re-finance property with two existing dwellings on an undivided lot.

Townhouses and Townhomes
In 2011, the State Legislature amended the unit ownership act to allow townhomes as a type of ownership. The primary difference between a townhome and condominium is the townhome owns the land below and the air above the dwelling unit and a condominium does not have this land and air ownership. Zoning regulations are not designed to regulate ownership but to regulate uses and structures such as building height and setback. The current definition of townhome is more aligned to an architectural style and not related to ownership. Since we cannot regulate ownership through zoning, the Planning Division proposes to eliminate townhome or townhouse as a use type in Section 27-305 and eliminate zero lot line references since these only apply under the current definition. The definition of townhome or townhouse will be updated in a future zone change (April 2012) when other legislative changes are considered for zoning code updates. Elimination of the reference to a zero lot line would not disallow a zero side setback but would require a property owner to seek and obtain a side setback variance.

Additional Side Setbacks – R-50 zone
The proposed amendments would eliminate the need for any additional side setbacks in the R-50 zone – a zone that allows single dwellings on a 5,000 square foot lot or two units on an 8,000 square foot lot. The additional side setback is required where R-50 subdivisions are platted without an alley. The additional side setback – to 10 feet on one side – was likely adopted to accommodate public utility infrastructure to run between dwelling units or to encourage R-50 subdivisions to plat alleys where utilities can be easily located. The minimum side setback of 5 feet on each side lot line is sufficient to accommodate most utilities. Many private utility companies now prefer to run adjacent to or within the street right-of-way. A well designed 5,000 square foot lot does not need additional side setback to prevent overcrowding of a lot.

The Zoning Commission conducted a public hearing on March 6, 2012, and received no public testimony. The Planning Staff explained the proposed amendments. The Zoning Commission is forwarding a recommendation of approval on a 4-0 vote.

Prior to any action to approve or disapprove, the City Council will consider the recommendation of the Zoning Commission and the testimony provided at the public hearing. The Planning Division recommended approval to the Zoning Commission.

The recently adopted Infill Policy encourages reforming regulations to create incentives and provide additional land use predictability within existing neighborhoods. Many of Billings' founding neighborhoods including the Billings Original Town, North Park, North Elevation, Yegen, West Side, Broadwater and Suburban were developed at sustainable densities with a "front house" for the owner and a "back house" for rent to family or friends. These properties can and have supported this development style for nearly a century. The proposed change to the calculation of required lot area will help sustain and will encourage new investment in these neighborhoods.