Lot Splitting Approval by Subject Jurisdictions

     The bill provides that, on or after December 31, 2027, subject to an administrative approval process, a subject jurisdiction shall approve the a lot split of an original lot into 2 new lots if the following conditions are met:

• The area of the original lot is 2,000 square feet or greater before the split;
• The lot split does not create a new lot that is smaller than 1,200 square feet in area;
• If the 2 new lots are not equal in area, the area of the smaller of the 2 new lots is equal to or greater than 40% 30% of the area of the original lot;
• The original lot is not subject to any previously recorded was never subject to another lot split;
• Residential use is allowed on the original lot;
• It is feasible for both of the new lots to be accessed; for utility easements to serve both new lots; and for both new lots to meet land survey plat and monument records requirements;
• The original lot is not an exempt lot; and
• The original lot is not located within a common interest community that was created on or before December 31, 2027.

      A subject jurisdiction may establish procedures to review and accept information related to a proposed lot split, including lot information related to:

• Property ownership;
• Physical characteristics of the lot, including geology and soils;
• Proposed new lot lines and new lot areas;
• Adequacy of water supply, sewer service, and drainage systems to serve the new lots;
• Adequacy of electric power and natural gas service to serve the new lots;
• Dedication for schools, parks, streets, and other public areas, or payment of money in lieu of such dedication; and
• Guarantees of necessary public improvements.

      A subject jurisdiction:

• Shall not apply a setback standard that requires a setback from the lot line adjoining 2 new lots created through a lot split if no structure existed on the original lot immediately preceding the lot split; and
• May apply a setback standard that requires a setback from the lot line adjoining 2 new lots created through a lot split if a structure existed on the original lot immediately preceding the lot split and if the setback is equal to or less than 5 feet.

     If an original lot or any structure built on the original lot is subject to an evidence of debt constituting a residential mortgage loan lien , then prior to approving the split of an original a lot split , a subject jurisdiction shall verify that the holder of the evidence of debt constituting a residential mortgage loan (holder) lienholder has received notice of the proposed lot split and has consented to the lot split in writing. The holder lienholder may condition consent to the lot split on the satisfaction of specified conditions.

     The written consent of the holder must be executed in a form that is eligible for recording in the real property records of the county in which the original lot is located and must include:

• The notarized signature of the holder lienholder or the agent of the holder lienholder ;
• The name of the record owner or ground lessee of the original lot;
• The legal description of the original lot; and
• The identities of all parties with an interest in the original lot, as reflected in the real property records. records, including any easements and encumbrances.

     The written consent of the holder lienholder must be recorded in the office of the county recorder of the county in which the original lot is located. If the holder lienholder does not provide written consent to the lot split, the subject jurisdiction shall not approve the lot split. A lot split that is approved before the written consent of the lienholder has been obtained and recorded is void.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)