Tax Base & Land Use Proposal: Multi-Family Occupancy Accountability in R-1 Zones
This policy introduces a refined residential zoning category—R-1 Multi-Generational—to recognize and regulate occupancy dynamics beyond traditional single-family norms. It balances tax equity, residential character preservation, and targeted enforcement—especially for investment-owned properties that function more like revenue-generating multi-unit complexes.
By LRA , published updated .
Tax Base & Land Use Proposal: Multi-Family Occupancy Accountability in R-1 Zones
This policy introduces a refined residential zoning category—R-1 Multi-Generational—to recognize and regulate emerging occupancy dynamics within single-family zones. It responds to a growing trend of owner-occupied R-1 homes housing multi-generational families who maintain partial independence through dual kitchens and semi-private living quarters—often resembling duplexes with a shared entrance, yet functioning as a unified household.
In addition to preserving neighborhood character and supporting aging-in-place, this proposal acknowledges the economic value of retirement income concentrated in these households. Retirees with stable monthly pensions contribute significantly to local economies through consistent spending on housing, healthcare, food, and services—generating sales tax revenue and supporting small businesses. National data shows that retiree pension spending fueled $1.5 trillion in economic output and $224.3 billion in federal, state, and local tax revenue in 2022 alone. By encouraging stable, family-rooted occupancy, cities can harness this localized economic multiplier as a reliable revenue stream.
The proposal balances tax equity, transparency, and residential integrity, while ensuring accountability mechanisms apply only to genuine household arrangements—not investment-owned properties operating as revenue-generating multi-unit complexes.
Case Studies Supporting R-1 Multi-Generational Ownership
| Location | Case Study | Key Insight | Link |
|---|---|---|---|
| Minneapolis, MN | Comprehensive Zoning Reform | Minneapolis eliminated single-family zoning to allow duplexes and triplexes, but found that owner-occupied multi-generational homes offered greater neighborhood stability and affordability than investor-owned conversions. | Bipartisan Policy Center |
| Salt Lake City, UT | R-1 District Study | City council initiated a study to simplify and improve R-1 zoning, including allowing attached single-family dwellings and internal segmentation to support aging-in-place and family cohabitation. | Salt Lake City Planning Division |
| California (Statewide) | Accessory Dwelling Unit (ADU) Expansion | Legalization of ADUs enabled many families to house aging parents or adult children on the same lot, preserving family ties and increasing localized spending from retirement income. | Urban Land Institute |
| Greenville, SC | Multigenerational Community Design | A conceptual design project demonstrated how internal segmentation (e.g., dual kitchens, shared entrances) can support intergenerational support and economic resilience. | Clemson University Thesis |
| Buffalo, NY | Adaptive Reuse for Veterans | A former school was converted into housing for veterans, many of whom live with extended family. The project highlighted the economic multiplier effect of retirement income in local economies. | HUD Case Studies |
These examples show that when cities support multi-generational owner occupancy, they gain more than just housing flexibility—they tap into stable retirement income, community continuity, and localized economic resilience.
Goals
- Preserve neighborhood character in R-1 zones
- Prevent conversion of homes into informal multi-unit rentals
- Create tax fairness between owner-occupied homes and investor properties
- Identify and reduce commercial activity disguised as residential occupancy
