Recently, inquiries have been made by representatives of affected property owners regarding the ability to utilize live-work units as part of the .5 FAR bonus in the CD-2 district. The Land Development Regulations of the City Code (LDR’s), define live-work as follows:

Live-work shall mean residential dwelling unit that contains a commercial or office component which is limited to a maximum of 70 percent of the dwelling unit area.

Although live-work units are a hybrid of an office and residential unit, under the CD-2 regulations, they do not qualify as a residential use for purposes of the .5 FAR bonus.

Subsequent to the deferral of this item at the April 19, 2023 LUSC meeting, a request from representatives of an affected property owner was made to modify the proposal by creating a new definition for residential office use in Section 114-1 as follows:

Residential office unit shall mean a residential dwelling unit which may be used jointly for residential living space together with office use, provided that such unit includes living space that is contiguous with the office space and contains separate bedrooms, as well as an abutting bathroom, full kitchen with a cook-top, refrigerator, sink and range, as well as a dining area. Additionally, the following shall be applicable:

1. For units that are 4,000 square feet or less in size, at least 1,000 square feet shall be dedicated to residential use and contain a minimum of one bedroom.

2. For units that are greater than 4,000 square feet in size, at least 25% of the unit shall be dedicated to residential use and contain a minimum of two bedrooms.

Additionally, the following revised text amendment has been proposed to allow for residential office to be included in the .5 FAR bonus in the CD-2 district:

Section 142-307 - Development Regulations (CD-2)
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(d) Mixed use buildings: Calculation of floor area ratio:
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(1) Floor area ratio. When more than 25 percent of the total area of a building is used for residential, residential office, or hotel units, the floor area ratio range shall be as set forth in the RM-2 district. New development or redevelopment that includes residential office units may only be eligible for the floor area ratio range as set forth in the RM-2 district in the event that the property owner elects, at the owner’s sole discretion, to voluntarily execute a restrictive covenant running with the land, in a form approved by the city attorney affirming that, in perpetuity, none of the residential office units on the property shall be leased or rented for a period of less than six months and one day.

The attached draft ordinance contains both amendments.

Currently, either live-work units, or the proposed new definition of residential office units, can occupy up to 1.5 FAR in buildings located in the CD-2 district. However, since both types of units are separate and apart from residential and hotel uses, they are not currently eligible for the .5 FAR bonus.

Since the LDRs are proposed to be amended in a manner that allows a new use (residential office) to exceed the current maximum FAR of 1.5 in the CD-2 district, compliance with Section 1.03(c) of the City Charter will be required. The City Attorney will evaluate any potential Charter implications as it relates to the proposed LDR amendment.

The Administration has no objection to the proposed LDR amendment, as it would further the city’s goals of promoting live-work options for residents. However, it is important to note that by their nature, residential office units are potentially less of a residential use and could be more oriented toward office use, as up to 75% of the unit could be occupied by office space. This is germane to the discussion as the proposed amendment would allow the .5 FAR bonus in the CD-2 district to be shifted away from purely residential or hotel uses and used for a more office-oriented hybrid.