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FAR Regulations Can Create Major Economic Penalty

Letter to the Editor of Greenwich Time Published August 18, 2002

By David Van Hoesen Greenwich

The Planning and Zoning Commission is considering reinstating restrictive floor area ration regulations.

Most people are unaware of the economic effect that a more restrictive FAR has on their property.  It is a simple calculation to make.  Example: An individual who owns a conforming lot of 20,000 square feet (approximately 0.46 acres) in an R-20 zone under the current guidelines is able to build a 5,000 square foot home.  Under proposed regulations, his or her rights would be limited to building a 4,500 square foot home, including finished basement, attic and above grade garage.

The net loss in the value of this home is approximately $150,000.  (Assumptions: Average cost for new cosntruction is $150 per square foot; median sales price for existing homes is $450 per square foot.)  The recent decision to include basements and attics in the FAR count has a similar effect.  By not allowing the homeowner to finish an existing attic or basement of 1,000 square feet, the town has reduced the value of his or her property by approximately $150,000.  (Assumptions: cost of $100 per square foot to finish existing space; resale value of finished basement or attic space at $250 per square foot). 

There is no benefit to restricting property owners' rights to finish attics and basements.  If you can get the square footage that the homeowner desires within the existing footprint, isn't it better?  The past few years show the effects of the more restrictive FAR.  It encourages developers to build as big a first and second floor as possible, becasue they can't get that extra family room or nanny suite in the attic or basement.  Furthermore, it encourages builders to build homes higher and put garages underneath, so they don't count in the FAR calculations.

The Planning and Zoning Commission means well; however, FAR should be left alone, with the exception of removing the restrictions on legally finishing basement and attic space.