Friday, September 25, 2009

McMansion Ordinance

Hello again from Olson Defendorf Custom Homes in Austin, TX.

This month we are talking about the 26 page McMansion ordinance passed by the Austin city council September 28, 2006. We get questions about what can be built, where, and what it needs to look like. This will clear up some confusion, and provide a link to the actual ordinance.

For those unfamiliar with the McMansion ordinance, the city describes the intent as, “…to minimize the impact of new construction, remodeling and additions to existing building on surrounding properties in residential neighborhoods by defining an acceptable buildable area for each lot within which new development may occur. The standards are designed to protect the character of Austin’s older neighborhoods by ensuring that new construction and additions are compatible in scale and bulk with existing neighborhoods.”

In easier terms, the ordinance restricts the size and style of the home you can build or remodel in certain areas of Austin. The boundary for the ordinance is approximately Ben White on the south, 183 on the north and east, and 360 on the west.

A few of the major points to consider when building inside this boundary are

1. Floor to Area Ratio (FAR) – This chapter allows you to build up to 40% of you lot size. FAR includes all of 1st, 2nd, 3rd floors and covered decks/patios on the 2nd and 3rd floors. For example, if you have a 60’x120’ lot that equals 7,200 sqft, you would be able to build a 2,880 (7,200 x 40%) sqft home on this lot.

2. Setback Planes (Tenting) – This chapter restricts building to be inside of a setback plane or a “tent.” Basically it is a setback plane angle that starts on a horizontal line 15’ above the side property line and slopes inward at a 45 degree angle creating a tent effect. The home must be built inside of this “tent.”

3. Sidewall Articulation - This chapter requires two story homes to have a recessed wall area on the sides of the home over every 32’. The goal is to try to break up huge walls of siding etc. from the side neighbors’ point of view.

If you are thoroughly confused, don’t worry. Troy and I know the ordinance inside and out, and we can tell you fairly quickly what can and cannot be built on your lot. I have also attached a link to the city’s website for the actual ordinance if you want to read it for yourself.

www.ci.austin.tx.us/zoning/sf_regs.htm

Energy Tax Credits

Hello from Olson Defendorf Custom Homes in Austin, TX.

We've had a lot of interest in the energy tax credits that started this year for improving your home. We will try to clear up what it all means to you.

The American Recovery and Reinvestment Act of 2009 includes many incentives to upgrade the energy efficiency of your home with a tax credit to offset the costs. There are basically two areas you can get the credit. There are energy improvements (windows, doors, HVAC, etc.) and renewable energy improvements (solar etc.)

Energy improvements include windows, doors, roof, HVAC, water heaters, etc. The credit is up to 30% of the cost of replacing these items with high efficiency products in the form of a tax credit ($1,500 maximum). All products must be installed by Dec 31, 2010. Here is a quick summary.

Windows and Doors - 30% of material cost - no labor
Roof - 30% of material cost - no labor
HVAC - 30% of materials and labor
Water heaters - 30% of materials and labor

The other area is for adding renewable energy systems and includes solar panels, wind turbines, geothermal heat pumps, solar water heaters, etc. There are a few differences with these including no cap on the credit earned, and they don't have to be installed until Dec 31, 2016. All of these earn a credit up to 30% of materials and labor, no cap.

Remember, this is a credit not a deduction so it directly reduces your tax bill by the amount earned. Make sure to keep your receipts and talk to your accountant. Also, there is not an income limit with any of these.

Also, in many cities like Austin, TX where we are located the local government offers more incentives as well, such as solar panel rebates.

Please see the link below for more detailed information.http://www.energystar.gov/index.cfm?c=tax_credits.tx_index