What is a Zoning Variance?
A zoning variance is an official exception to the local zoning ordinance granted by a government board or commission. When a property owner wants to use their property in a way that doesn't comply with the current zoning regulations -- such as building closer to the property line than the setback requires, or exceeding the maximum building height -- they can apply for a variance. If approved, the variance allows the specific deviation while keeping the underlying zoning classification unchanged.
Variances are different from rezonings. A rezoning changes the zoning classification for a property entirely. A variance simply grants an exception to one or more specific requirements within the existing zone. Variances are typically easier and faster to obtain than rezonings, but they're also more limited in scope. You can't use a variance to change a residential property to commercial use, for example -- that would require a full rezoning.
Types of variances
There are two main types of zoning variances. A use variance allows a property to be used for a purpose not normally permitted in its zone -- for example, operating a small business in a residential zone. Use variances are difficult to obtain and are not allowed in many jurisdictions because they effectively change the character of the zoning without going through the rezoning process.
An area variance (also called a dimensional or bulk variance) allows deviation from the physical requirements of the zoning code, such as setbacks, lot coverage, building height, parking ratios, or lot size minimums. Area variances are more commonly granted because they involve physical adjustments rather than fundamental changes to how the property is used. Examples include building an addition that encroaches slightly into the required setback, or constructing a structure taller than the zoning code allows.
The variance application process
Applying for a variance typically involves submitting an application to the local zoning board or board of adjustment, paying an application fee ($200-$1,000+ depending on the jurisdiction), providing detailed plans showing the proposed deviation, demonstrating that a hardship exists (the property can't reasonably be used without the variance), and attending a public hearing where neighbors and other parties can voice support or opposition.
The hardship requirement is the key legal standard. Most jurisdictions require the applicant to show that strict compliance with the zoning code would create an unnecessary hardship due to unique characteristics of the property -- not simply that the owner wants to do something different. An oddly shaped lot that makes it impossible to build within the setbacks is a valid hardship. Wanting to build a bigger house than the lot allows is generally not.
Variances and investment opportunities
For real estate investors, variances create opportunities in two directions. First, a property that already has an approved variance may be more valuable because it can be used in ways that competing properties cannot. A residential lot with an approved variance for a duplex in a single-family zone is worth more than identical lots without that variance. Second, investors who understand the variance process can acquire properties at prices reflecting current zoning, obtain a variance, and increase the property's value through the expanded use rights.
When evaluating a property, always check whether any existing variances are in place. Variances typically run with the land (they transfer with the property), but some may have conditions, expiration dates, or requirements that must be maintained. The local zoning or planning department can provide the variance history for any property.