Regulatory research is a critical component of our Development Due Diligence process and Property Condition Assessments (PCAs). We conduct this research to ensure compliance with zoning and building regulations, as well as to verify that there are no outstanding issues that could affect a project. Below, we’ll take you through the key steps of our regulatory research process, which helps us provide accurate and thorough assessments for our clients.

Initial Documentation Review

The first step in our regulatory research process is to check the offering memorandum and other provided documents to identify the potential city or county jurisdiction. This allows us to gather basic information, such as the project number, property name, and building addresses. All relevant documents are saved in the project file under a folder named “Regulatory” for easy access.

Research Zoning Classification

To determine the zoning classification of a property, we begin by performing an online search for the city, county, and state. Most jurisdictions have a dedicated “Planning” or “Zoning” department where zoning information is publicly available. We review the zoning map to ensure that the property falls within the correct jurisdiction and notate the zoning classification (e.g., CD for commercial district, RM for residential multi-family, or PD for planned development).

Obtain Current Ordinances

Once we’ve confirmed the zoning classification, we obtain a copy of the current ordinance, which can typically be found on the same webpage as the zoning map. We input the zoning classification code and print out the relevant pages of the ordinance, making sure to include important details such as designated use, development standards, and offsite parking requirements. For properties under a “PD” classification, we often need to obtain additional documents such as site plan approvals, which may require a phone call to the department if not available online.

Validate Zoning Classification

To ensure that the zoning classification is correct, we either verify the information through the documents provided or by reaching out to the zoning department for confirmation. If we encounter issues, the department can assist us in pulling the ordinance or locating archived paperwork related to planned developments.

Investigate Building Code Violations

Next, we contact the building department to inquire about any outstanding building code violations. This process may require us to submit a request in writing. We document all communications, including the submission method (email, fax, or online form), and retain a PDF of the request for our records.

Verify Certificates of Occupancy

We then check the provided documents and consult with the PR&A representative for any available Certificates of Occupancy (CO). For warehouses or retail spaces, we aim to secure both “shell” and tenant COs. If these certificates are not available, we reach out to the building department or search the jurisdiction’s website. All obtained COs are saved as PDFs in the project’s network folder.

Fire Code Violations and Inspection Reports

Our next step is to research any fire code violations by contacting the fire department’s “Prevention” or “Fire Marshal” division. We inquire about open fire code violations or issues at the property and ask how we can obtain the latest fire inspection report. Similar to building code violations, these requests may also require written documentation, and we note the details and status on our checklist.

Keep the Team Updated

Throughout the process, we keep the PR&A generalist informed of our findings. As new information comes in, we share updates on what’s been discovered and highlight any irregularities, such as temporary COs or discrepancies in property addresses. This ensures everyone on the team stays aligned and aware of any issues that need further investigation.

Follow-Up and Finalize Research

We continue following up with each department and contact until all necessary information is gathered or the report is finalized. Ensuring all pieces of information are complete is vital to providing our clients with the most accurate and reliable data possible.

Address Follow-Up Questions

As the process moves forward, the PR&A generalist may have follow-up questions or require additional clarification. For example, they may discover concerns with parking or zoning compliance that need further investigation. We are always available to provide additional research and resolve any new questions that arise.

Outstanding Permits: If open permits are mentioned during our inquiry with the building department, we conduct additional research on these permits, including their dates, types, and statuses, going back two years.

By following these steps, we ensure that all regulatory aspects of a property are thoroughly investigated and documented, helping our clients make informed decisions. Our commitment to proactive research, clear communication, and attention to detail sets us apart in delivering high-quality Property Condition Assessments.