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NEW ZONING AND LAND DEVELOPMENT CODE | PART III, WHAT CAN I DO WITH MY PROPERTY? (LAND USE – TETON COUNTY, ID)

November 23, 2022 By Tayson Rockefeller Leave a Comment

As a reminder, this is the third part in a multi-part blog article describing Teton Valley’s new zoning map and land use code. Always refer to the actual and most recent revision of the code, and keep in mind that this is for the unincorporated areas of Teton County and does not include the city limits of Driggs, Victor, or Tetonia. This does not include Alta Wyoming, refer to Teton County, Wyoming for land use regulations there. This article does not account for subdivision covenants, conditions and restrictions, which would be an additional layer above the county regulations. In the event that the county regulations provide for a use, setback or otherwise, you can generally expect that the county restrictions will supersede those outlined in any subdivision documents.

RESIDENTIAL ZONE USES

As described in the first two parts of this article, there are essentially two types of zones with varying density requirements. While it’s a bit more complex, there is essentially an agricultural/residential zone and an industrial zone. You can find an overview of the zone types in Part I, here.

What can I build?
Agriculture or residential zones (which account for almost all zones aside from the industrial zone) allow for a primary dwelling unit or a single-family home. Keeping in mind any subdivision restrictions, they would also allow for an agricultural building or operation, and an attached accessory unit. We will go into that in a little more detail, below.

*Height limitation: 30 ft

*Agricultural Building height limitation: 60 ft

*Setbacks: Refer to Part II, here for each zone. In addition, any physical development near the Teton River must be setback 100’ from the ordinary high water mark, and 50’ from any other stream, creek or pond.

*Ridgeline Construction: Physical development shall not breach ridgelines as viewed from State highways. If this is unavoidable, a “visual resource analysis” is required.

Accessory Buildings (sheds, etc)
Accessory buildings such as a tool shed or storage shed are allowed in all county zones. They must adhere to the dimensional standards required by each zone district, primarily height and setback requirements.

Building Permits
Building permits are required for any structure over 200 SqFt unless it is a dwelling, in which case a permit will be required for any size.

Manufactured & Modular Homes
Manufactured homes, except those built prior to 1976 are allowed as long as they are constructed to satisfy the uniform building code (UBC). Modular homes are also subject to the building codes.

Guest Houses
Also known as accessory dwelling units, these standards very based on the zoning type. ONE guest house is allowed per parcel where appropriate parking and wastewater treatment provisions are installed, with maximum square footage requirements as follows;
*Attached Guest Houses: must not exceed 1500 SqFt.
*Detached Guest Houses:
Parcel Size | Maximum Sq Ft
7.5 acres+ | 1500 SqFt
2.5 – 7.5 acres | 1200 SqFt
<2.5 acre | 900 SqFt

Short-Term Rentals
Short-term rentals are loosely defined as lodging for terms of 30 consecutive days or less. We’ve talked about Idaho’s legislature in past articles, so it is difficult for any municipality or land use code to restrict short term rentals. However, there are some limitations on use. It’s important to also keep in mind that homeowners associations can restrict short-term rentals, but most do not. Aside from some basic guidelines that would seem obvious, here are some highlights:
1) You must obtain a short-term rental business permit (which does carry a fee), and it must be determined that the wastewater treatment system is sufficient for the size of home.
2) There are county-wide quiet hours from 8:00 p.m. to 8:00 a.m.
3) Special events (weddings are a good example) with guests beyond those allowed on the property must obtain a temporary use permit.
4) Smoke detectors, carbon monoxide detectors and fire extinguishers must be installed.
5) All Property owners within 200 ft of the short-term rental property shall send written notice, including contact information.
6) The address and access directions must be posted on the inside front door.

Bed and Breakfast
A bed and breakfast can be allowed on a limited use basis for up to three units. 4 to 8 units may be allowed with a special use permit approved by the Planning and Zoning Commission and Board of County Commissioners. In addition to the short-term rental regulations, the B&B must maintain the residential character of the neighborhood with no business-related storage warehouses or supplies allowed outside. One sign is allowed that is no larger than 3 SqFt, there must be central dining facilities and any food service must be reviewed and approved by the Teton County Fire Marshall. In addition, a food license or proven exemption must be obtained from East Idaho Public Health.

Campgrounds
Campgrounds are considered with a special use permit in all zones except for the RN-5 Rural Neighborhood zone and the areas of impact. In addition, here are some basic requirements that must be met before a proposal will be considered by the Planning and Zoning Commission and Board of County Commissioners:
Minimum Lot Size | Maximum Camp Sites
40 acres | 20 campsites
60 acres | 30 campsites
80 acres | 40 campsites
100 acres | 20 campsites
40 acres | 50 campsites
120 acres | 60 campsites

Additional guidelines include:
1) 80% of the sites must remain as undeveloped open space Parks or recreational amenities.
2) tent sites must include a level pad at least 150 SqFt and parking at least 200 ft in size. RV sites must be at least 1,350 SqFt to accommodate an RV and parking in addition to hook ups that meet state and local requirements.
3) 200 ft property setbacks.
4) Wastewater systems must be approved by East Idaho public health.
5) All interior roads must meet Teton County fire department requirements.
6) Screening on property sides.
7) Stays shall be limited to 14 consecutive days (or less).

Note that there is also a long-term rental campground with similar restrictions and a minimum stay of 31 consecutive days. It’s important to keep in mind that the same property cannot offer both long-term and short-term camping.

Glamping (Resort Style Campgrounds)
Similar to campgrounds, resort style campgrounds can be allowed with a special use permit in all zones (again, this will require Planning and Zoning and Board of County Commissioners approval) with the exception of the RN-5 Rural Neighborhood zone and the areas of impact.

The regulations for resort campgrounds (aka glamping with tipi’s, yurts, cabins or tiny homes) you have similar restrictions to campgrounds with these highlights:
1) “Units” to be 500 ft or smaller.
2) Minimum lot size to be 40 acres.
3) A maximum of 10 units or less.
4) All facilities, platforms, structures and wastewater treatment shall be provided and comply with state and local building code requirements and East Idaho Public Health requirements.

Daycares
Daycares are allowed in all zones except the industrial zones with a special use permit which again requires Planning & Zoning and Board of County Commissioners approval. They do have obvious regulations for health and safety. Home daycares are allowed on a limited use basis which would not require the aforementioned approvals, but do have some regulation.

INDUSTRIAL/RESEARCH ZONE USES

The industrial zone is suitable for business oriented uses with uses such as outdoor storage, vehicle service and repair, distribution, warehouse and other similar uses permitted, and a variety of other uses (usually not otherwise permitted) allowed on a limited or special use basis.

Dwellings
While standalone dwellings are not permitted in the industrial zones, attached accessory dwelling units are allowed with limitations, and short-term rentals are not allowed.

USE TABLE SUMMARY

Below is a “Use Table” with various categories and specified uses. You can refer to the zoning map overview in Part I, here.
The use table establishes allowed uses by zone district. No building or lot may be used except for
a purpose allowed in the district in which it is located.
3-2-1 Use Table Key
A. Permitted Use (P)
Indicates a use that is allowed or permitted by right in the respective district. The use is also
subject to all other applicable requirements of the LDC.
B. Limited Use (L)
Indicates a use that is allowed in the respective district, by Planning Administrator approval per
Section 4-1-3 herein, subject to specific use and dimensional standards. The locations of the
relevant use standards are found in the definitions in Sections 3-3 to 3-8-10. The use is also
subject to all other applicable requirements of the LDC.
C. Special Use (S)
Indicates a use that may be allowed in the respective district only after recommendation by the
PZC and approval by the BoCC as set forth in Chapter 4. Special uses are subject to all other
applicable requirements of the LDC, including any applicable use standards, except where the
use standards are expressly modified as part of the approval process.
D. Uses Not Permitted (–)
Indicates that a use that is not allowed in the respective district.

November ’22 Market Report & Predictions

November 11, 2022 By Tayson Rockefeller Leave a Comment

Okay, I get it. You are tired of the usual market reports that cover where we are today. MBS markets, the CPI, inflation, interest rates and inventory. Same old. To be fair, this is all relevant data. Many look to market reports to understand when to buy or sell, how to price real estate listings, and what to expect.

So, on that last point, I took some time to review my own past articles, many even going back half a dozen years or more. What was I saying then? One interesting article (link below) was based on a Harvard study focusing primarily on supply and demand. In that article, historic trends pointed to a possible recession in or by 2024 (using my own math) as a result of the possible oversupply of existing homes. To clarify, recessions are not tied to the housing market, as we can clearly see with what is happening in the Nation today. Many economic factors are tied to the “R” word, and there have even been recent arguments that the traditional measure of a recession based on positive or negative growth and the gross domestic product are not relevant today.

2016 Article Link

Where am I headed with this? Based on the root of the article I linked above, we really have to take a look at supply, or more specifically, oversupply. How does the supply of homes today compare with the last housing market bubble? I won’t focus as much on how it compares with historic trends, we’ve covered that dozens of times. That data, for those not paying attention, reveals that we are currently in a typical market with no indication of an oversupply on the market today. We sit at a comfortable balance with anywhere from 5 to 6 months’ worth of supply at the time of this writing. While land exceeds that, the supply of land is not unusual for our market, even during good times.

It is hard to calculate historic absorption, but I can look at average “days on market” for real estate for past years, and I do have previous market reports with historic data available on our brokerage website. According to the data and opinion in my 2016 article, our market would be in decline in the 2022-2024 timeframe. Below is some data that compares where we are today, vs historic years.

Summary: I have maintained my position that the Covid years supercharged the real estate market that was already primed for a “bubble”, this is common knowledge. However, Covid also created major supply chains and labor issues that built shelter for a construction bubble, limiting the number of new projects, at least in our region. As a result, the supply of existing homes is lower than it otherwise may have been at this time due to the astronomical cost. Though my data below is skewed (the Winter data was normally based on the activity from the Summer months, as an example), the takeaway is that since 2017, residential absorption has averaged about  5.4 months before a sale occurred, MORE than the estimated supply of homes today. Though I anticipate things will continue to slow, probably not much more than the proportionate increase of interest rates, which is also starting to see relief based on the most recent economic reports.

TIME OF WRITING: 11/11/2022
Residential Absorption: 5.2 months
Residential Number of Listings: 127
Land Absorption: 7.3 months
Land Number of Listings: 253

AVERAGES SINCE 2017
Residential Absorption: 5.4 months
Residential Number of Listings: 125
Land Absorption: 11.9 months
Land Number of Listings: 360

2017 Summer Data
Residential Average Time on Market: 7.2 months
Residential Number of Listings: 114
Land Average Time on Market: 15.3 months
Land Number of Listings: 134

2017 Winter Data
Residential Average Time on Market: 5.4 months
Residential Number of Listings: 207
Land Average Time on Market: 25.5 months
Land Number of Listings: 509

2018 Summer Data
Residential Average Time on Market: 7.7 months
Residential Number of Listings: 135
Land Average Time on Market: 10.7 months
Land Number of Listings: 135

2018 Winter Data
Residential Average Time on Market: 5.5 months
Residential Number of Listings: 169
Land Average Time on Market: 13.1 months
Land Number of Listings: 617

2019 Summer Data
Residential Average Time on Market: 6.6 months
Residential Number of Listings: 144
Land Average Time on Market: 11.3 months
Land Number of Listings: 460

2019 Winter Data
Residential Average Time on Market: 5.4 months
Residential Number of Listings: 159
Land Average Time on Market: 12.1 months
Land Number of Listings: 507

2020 Summer Data
Residential Average Time on Market: 4.4 months
Residential Number of Listings: 113
Land Average Time on Market: 10.4 months
Land Number of Listings: 406

2020 Winter Data
Residential Average Time on Market: 6 months
Residential Number of Listings: 114
Land Average Time on Market: 10.8 months
Land Number of Listings: 384

2021 Summer Data
Residential Average Time on Market: 3.9 months
Residential Number of Listings: 46
Land Average Time on Market: 5.5 months
Land Number of Listings: 213

2021 Winter Data
Residential Average Time on Market: 2.1 months
Residential Number of Listings: 51
Land Average Time on Market: 4.7 months
Land Number of Listings: 238

What do you consider Peak season?

November 7, 2022 By Tayson Rockefeller Leave a Comment

One of the most frequently asked questions I get pertains to the seasons. I wear multiple hats around the office. Sometimes I provide insight for the property management team. Other times, I may be working the administrative or brokerage side of the business. In addition, and like any real estate agent, I’m always working “sales”. Interestingly, the property management side assumes that Winter is the big season, and the sales side customers assume Summer is the big season.

I’m not going to pull metrics to try to prove my point when it comes to rentals, I can assure you that the Summer months are the busiest. The property management team is reeling with PTSD by the time October rolls around, normally to be reminded of how much of a pain property management can be through the Winter months.

I can vividly remember researching this very topic on the sales side some years ago and determining that there were more sales that Winter season than the Summer prior. This instance most certainly occurred post 2008 and pre-2020, and I don’t recall any volatile years in between. That said, I can also distinctly recall dozens, if not hundreds of instances where home or land sellers discuss taking listings off the market as winter approaches, with the strong opinion that things do indeed congeal as the temperatures drop.

Okay, enough already. Here are the stats. I’m working off of the Teton board of realtors MLS and including all of the areas served (Teton Valley, Jackson, Alpine and surrounding areas), and I am not breaking this down by property type (give me a break, it’s 11:00 p.m. on Sunday). Also, I’ve decided to base Summer sales on June 1st through November 30th, and Winter December 1st through May 30th.

2018
Winter sales: 788
Summer sales: 1,146

2019
Winter sales: 711
Summer sales: 1,177

2020
Winter sales: 686
Summer sales: 2,255

2021
Winter sales: 1,676
Summer sales: 1,782

2022
Winter sales: 1,151
Summer sales: 894

There you have it. 2022 is obviously an anomaly with a changing market on the heels of the post covid real estate craze, as was likely my aforementioned vivid memory – unless it’s not a memory at all… At any rate, just because there are more sales that occur during the Summer season, does not mean that homes should not be listed for sale during the Winter months as 2022 easily illustrates. Further, more sales does not necessarily equate to a higher sales price. Often competing with less inventory in the Winter can benefit one looking to sell.

How are Mortgage Interest Rates Determined?

September 26, 2022 By Tayson Rockefeller Leave a Comment

If you read the same news articles I do, they are filled with terms like basis point increases by the Fed (the Federal Reserve), the MBS market, inflation, treasury bond yields, blah, blah, blah. What does it all mean, and how does it affect mortgage interest rates?

Disclaimer: I didn’t even get through college, like hardly. Take this with a grain of salt, but I had to try to make sense of this in my own mind, and wanted to share that journey with you.

Micro
In the loan world, interest rates are affected by a number of internal factors. These include whether the loan is a government loan (ie FHA, VA or USDA), if it’s a primary home mortgage (people tend to default less with respect to their primary home), the equity or down payment amount, credit scores and property types.

Macro
From 30,000 feet, there’s a lot more going on. This is where you’re going to hear about “the Fed”, Treasury Bonds and the MBS Market, aka the Mortgage Backed Securities market.

The Fed
The Federal Reserve does not set mortgage interest rates. However, and despite a number of direct factors that determine mortgage interest rates, there is a strong correlation between the two when comparing the Federal Reserve’s rates with mortgage interest rates. The Federal Reserve meets about every 6 weeks to look at economic factors, primarily making sure that prices are stable and inflation is low, as well as the strength of the jobs market. Their primary goal when adjusting rates is to control inflation. The Fed’s rate was lowered to almost zero at the beginning of the 2020 pandemic to stimulate the economy. Now, the Fed is reacting (as opposed to being proactive, another discussion) by raising the rate to make borrowing more expensive and therefore cooling down the economy by reducing spending and thus inflation. Regardless, the Fed’s rate will directly affect other consumer loans like auto loans and credit cards.

Treasury Bond Rates
Government bonds are usually considered very safe investments issued by and backed by the National government to support government spending. Mortgage rates are more closely tied to Treasury Bond rates (T-Bonds if ya want to sound cool), usually issued with a maturity date between 10 and 30 years. They pay interest to the investor until the bond matures. When bond interest rates are high, the bond is considered less valuable in the secondary market as it is paying out more in interest. This causes mortgage lenders to lower rates and vice versa. A bond’s yield refers to the return on investment for the purchaser of the bond.

(Unrelated), for those of you that want to go down this rabbit hole, here’s a quote from Investopedia on yield curves, something we talk about when predicting recessions;
A yield curve inverts when long-term interest rates drop below short-term rates, indicating that investors are moving money away from short-term bonds and into long-term ones. This suggests that the market as a whole is becoming more pessimistic about the economic prospects for the near future.

Mortgage-Backed Securities (MBS)
Mortgage-backed securities are kind of like a bond that is made up of a bundle of home loans. These pools of loans can be millions or even billions of dollars worth of home loans. Essentially, Local Bank sells your loan to>Larger Bank for the original cost of the loan, (so they can get their capital back to make more loans) and they usually make their profit with a small loan fee paid by the borrower. Larger Bank sells your loan and many others to>A Corporation (or more likely Fannie Mae or Freddie Mac) for a small portion of the interest paid by you, and the other loans. They then sell shares to shareholders for a small portion of the interest. The banks get their Capital back to make new loans and everyone makes money, assuming none of the loans are paid off and none default, but that’s built into the overall investment analysis for the shareholders. Anyway… As the demand for mortgage bonds increase, Fannie and Freddie can also demand a higher price with a lower yield to shareholders. As the demand decreases, they have to reduce the price and offer a larger yield. More simply, when MBS prices drop, lenders rise their interest rates to compensate. Inversely, the more MBSs investors buy, the lower the rates drop. Here again, the MBS market is largely influenced by The Fed raising rates.

Conclusion
So… How are mortgage interest rates determined in Teton Valley? (<— gotta add some SEO here) My best (and totally crude and heavily opinionated conclusion) is that they are influenced by the supply and demand of bonds like Treasury Bonds and Mortgage Backed Securities, which are in-turn influenced by the Federal Reserve and it’s rate, intended to keep the inflation rate in check, the housing market in check, and the jobs market in the best position possible.

Helpful Resources:
The Fed:
Here’s a great video explaining this process in more detail.
https://youtu.be/AkMsMDk_brU
MBS
Here’s the video from Concerning Reality that does a great job explaining mortgage-backed securities: https://youtu.be/feDw649zekw
And another from First Integrity Mortgage: https://youtu.be/JRvSDV-C33w
Treasury Bonds
Here’s another video, this one does a good job explaining Treasury Bonds.
https://youtu.be/P2tpRnDO_U0

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