Looking to Secure Your Right to Develop?
What is a Vested Property Right?
A vested property right, as defined in Colorado statute, is the right to undertake and complete the development and use of property under the terms and conditions of a site-specific development plan. In 1987, Colorado adopted the Vested Property Rights Act (the “Act”) to provide certainty for property owners to develop their property. The Act provides that once a property owner has a vested property right to develop, local governments can’t interfere with that development for 3 years, except in limited circumstances. This means that once a developer receives a vested property right to develop, local governments can’t change the zoning rules or otherwise prevent the development of the property for the planned purpose the developer received the vested property right for unless a landowner consents, hazards are discovered, or just compensation is received.
A vested property right guarantees a developer’s right to follow through with their plan even if future zoning rules would prohibit that type of development. The ability to obtain vested property rights is a matter of public policy. Vested property rights provide stability and follow-through to developers while stimulating economic growth and encouraging the public and private sectors to cooperate in land use planning.
How do you get a Vested Property Right?
The default rule provided by the state grants vested property rights upon the submission and approval of a “site-specific development plan” for a property, but the Act gives local governments some leeway in determining the exact process for receiving a vested property right. Site-specific development plans are plans that a landowner submits to their local government describing the type and intensity of the use of a specific parcel of property. These plans can range from subdivision plats to general submission plans.
For a site-specific development plan to be approved, a public notice and hearing by the local government must take place. After approval, the developer must publish a notice in a local newspaper advising the public of the approval and creation of the vested property right. This notice must be published within 14 days of the approval by the local government.
Some local governments have additional requirements for site-specific development plans beyond the state requirements. A common local requirement is for specific language to be included in the site-specific development plan. Local governments may also impose more requirements for the published notice, which usually provide the public with additional details of the site-specific development plan.
What does a Vested Property Right really mean for me?
A vested property right provides you with recourse if the local government takes any action that is inconsistent with your site-specific development plan. A local government can’t change zoning laws specific to the property or interfere with the development process by amending the plan or implementing additional requirements. This means that the property owner who received a vested property right can enforce their right against a local government for any action that delays or impairs the development of the property according to the site-specific development plan. Effectively, this turns the site-specific development plan into an enforceable document.
What limitations does a vested property right have?
One major limitation of vested property rights is that vested property rights cannot be enforced against neighboring properties, even if a neighbor is using their property for a purpose which diminishes the enjoyment, utilization, or value of the property with a vested property right. Effectively, this means that local governments can adjust zoning laws and regulations around the property with the vested property right. To this end, a vested property right is site specific. As such, the right is confined to the property contained in the development plan. While the right prevents local governments from interfering with the approved development, the right does not vest in surrounding properties.
Owners of neighboring properties have no duty to promote or even acknowledge the approved development. If a neighbor takes an action that is permissible under the local zoning laws, the owner of a vested property right can’t stop or change that action. The impact of a vested property right only extends to the boundaries of the development plan itself. However, this doesn’t preclude the possibility of other property or tort claims against the neighbors who diminish the enjoyment or value of the property.
How can a Vested Property Right help me in a dispute?
If an issue arises with a neighbor or a local government body, then a vested property right can play a big role in allowing a developer to carry out their development plan. The right becomes an asset if the local government tries to interfere with the development or if a neighbor diminishes the enjoyment or value of the property.
The authority of the vested property right depends on the opposing party. If there is a dispute with a local government body, then the right will control the outcome. If there is a dispute with a neighbor, then the right will be an additional factor in favor of the right holder.
If you need help securing a vested property right or you want representation in a dispute over your already vested rights, GLO is here to help guide you through the process and successfully complete your development. Fill out an interest form today to see if GLO can help you.
GLO has prepared this blog to provide general information on legal issues that may be of interest. This blog does not provide legal advice for any specific situation, and this does not create an attorney-client relationship between any reader and GLO or its attorneys. GLO engages clients only through specific fee arrangements and signed engagement letters. GLO does not guarantee any results.