Goodbye Old House, Hello New House
- Tuesday, 15 July 2014 14:44
- Last Updated: Tuesday, 15 July 2014 15:39
- Published: Tuesday, 15 July 2014 14:44
- Jamie Kayam
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Does it seem like more houses are getting demolished in Scarsdale than usual? Ever wonder what the process entails, who's swinging the proverbial wrecking ball and who's designing the new homes built in their place?
There can be some very good reasons to replace an older home. It's fairly common for age-related wear and tear to bring a property's value and attraction down, prompting developers and enterprising buyers to invest in new house construction, and smaller homes on larger lots can offer the potential of untapped value. Sometimes a current owner may just want a new house.
The details on this subject can seem endless, so to start, this article focuses mostly on the process of building a new home in Scarsdale. We hope it offers some clarifying perspectives for our neighbors.
Risk and Reward
Right now, the real estate market in Scarsdale is hot. Many listings move into contract fast and every month there are new homes scheduled for construction. But that wasn't always the case; the economics of turning a dime can get tricky:
One particular project in Greenacres took a developer nearly six years to conclude; a property was purchased and demolished in 2006 for $1,181,000 million, built new and listed for sale in 2010 at $3,150,000 and stood vacant until it sold in late 2012 for $2,235,000. Holding the house for six years cost about $210k in property taxes, and the reduced price was $915k less than the intended sale price. That would have left a balance of $844k to develop the property. If new construction cost 700k, that would leave a profit of $144k — over a six year period that's about $24k per year.
Yet developers continue to see dollar signs all over our town. In June this year a listed property in Heathcote was aggressively bid on by multiple parties, and in just 2 weeks went to contract above asking price — by a developer. The buyer stated he intends to keep his new purchase as a rental home for clients while he completes multiple other projects in Scarsdale.
Demolition to Construction
What does it take to get a new house built? I spoke with Liz Marrinan, Scarsdale's Village Planner, to get a broad overview of the entire process. Here are the simplified steps from demolition to new construction:
- Submit an application for demolition to the Committee of Historic Preservation (CHP). The CHP is tasked with reviewing all demolition requests that involve over 50% of a structure. A review is conducted of a home's historical significance and can potentially be denied a permit for a tear down. But, if approved, start polishing your wrecking ball!
- Hold on, there are a few exceptions — in some cases, the Planning Board must conduct a review of your application as well. They'll get involved if your property is located on designated wetlands or is one of Scarsdale's rare flag lots (these are houses located behind other houses with long driveways).
- Submit your new home designs to the Board of Architectural Reviews (BAR). The BAR requires that new construction plans are submitted by a licensed architect, and will be reviewed for aesthetic qualities and adherence to design regulations. Once approved, it's time to proceed to step 4, but don't worry, the BAR will meet with you again for landscaping design before you can move in.
- Submit your plans to the Building Department and the Engineering Department. First, Engineering will need to review and approve your plans for a stormwater permit, and then a building permit can be issued.
- Congratulations, you may now pass Go! But hold on, your project will be subjected to multiple inspections by the Building Department as you progress. So make sure you run a tight ship and comply with all regulations.
House Design
One of the most intimate aspects of new home construction involves presenting the design for approval.
I spoke with Jack Scott Miller, Chairman of Scarsdale's Board of Architectural Review, to get some additional insight into how the BAR conducts the process.
For full disclosure, please note that I'm an alternative member of the BAR (an active substitute), so I sometimes sit on the BAR and assist in conducting design reviews.
Jack referred me to the BAR's official mandate, which states: "The purpose of this chapter to preserve and promote the character and appearances and conserve the property values of the village."
The BAR tries its best to hold the line on quality designs as changes in the architectural landscape persist, but developers and property owners are tenaciously lobbying for what they want as well.
A huge part of BAR public hearings are neighbor's concerns. Residents often appear at meetings in groups, prepared to express their opposition to proposed projects. Complaints range from home designs being too large and driveways too long to new designs that contrast with the theme of a particular block and driveways that meet the road too close to other existing driveways.
Neighbors also bring complaints about rainwater running off from new home sites onto their properties, resulting in flooding issues, but that concern is dealt with by the Engineering Department.
Building Permit and Inspections:
To gain better insight into the actual process of building a new house, I reached out to Scarsdale's Building Department Director, Nunzio Pietrosanti. We discussed some of his experiences and concerns as new projects come into his office for oversight.
Under ideal circumstances, a project application is processed in about four weeks if all paperwork is in order and there's a minimum backlog of submissions at the office. Sometimes processing can take up to eight weeks. The Building Department tries to work closely with everyone who's submitting a project, and I found Nunzio's openness to be a reflection of the department's efforts to be accessible and user-friendly.
There are typically two types of entities who come to the department to get a project started; property developers who bring years of experience navigating the process and individual property owners trying their hand at house building for the first time. Applications with errors can get rejected, so if you're going it alone, consulting with professionals and taking the time to study village regulations can help expedite a complicated process.
The Building Department has a busy schedule. The process of inspecting a new house as it's being constructed can require up to 15 on-site inspections over a period of about a year, and there are currently 2 inspectors on staff to accommodate all reviews. Larger houses can take even longer.
Inspections range from analyzing foundations and load-bearing structures to plumbing and natural gas lines, as well as coordination with Con Edison for electrical lines, and conformity to approved design specifications. Additionally, the Engineering Department gets involved in the inspection of storm drain installations, as well as approving soil erosion and sediment control measures in order to issue a stormwater permit.
It's a delicate dance between developers, inspectors and third-party specialists all trying to meet deadlines and expectations of safety and quality.
Ready to move in?
In addition to all of the professionals employed by the village, there's also the team that's going to actually build your new house.
If you've ever marveled at how complicated a small bathroom renovation can get, just imagine the details involved with a house. And don't forget to include the bathrooms.
To start, you'll need a land surveyor, architect, foreman, foundation builder, craftsmen, bricklayers and masons, plumbers, electricians, roofers, asphalt pavers, and you're definitely going to need a landscape designer. Which direction will your house face, how will the sun shine on it? Solar panels or geothermal heating, or both? How many zones for the central A/C and radiators? Lighting fixtures, faucets, door knobs, dumpsters, port-a-potties, marble or granite — can we move in yet?
The details can seem endless, and there's an enormous amount of talent and skill involved. Considering it all, it's impressive to watch these houses go up in just one year.