How the Feds Thwart Upper Story Residential

BIGGER PICTURE | Triangle planners think their zoning allows Main Street buildings, but don't know about a federal regulation which prevents them.

Pg. 9 of Fair Housing Act Design Manual. Source: U.S. Department of Housing and Urban Development

Three-story mixed-use buildings, with residential apartments above small retailers, are what most of us imagine when we picture "Main Street, U.S.A." — as evidenced by their presence at Disney World. Many local planners have created zoning designations that, at least on paper, should encourage more of them along the Triangle's commercial streets.

Yet almost no such buildings have been built in recent years, and the image above from the federal Fair Housing Accessibility Guidelines shows why. For example, the relatively new UDO in Holly Springs, N.C. says in section 3.3.2.A.2: "Apartment Dwellings are only permitted when located on upper stories within a vertically integrated mixed-use Building with non-residential Uses permitted in the District on the ground floor story." Neighboring Apex (UDO 4.3.1.A) also prohibits apartments on “the ground floor of a commercial use” in its downtown and TND (Traditional Neighborhood Development) districts.