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Why You Don’t Own Your Front Yard
Why You Don’t Own Your Front Yard

Most Minneapolis homeowners are shocked to learn they don’t own all of their front yards.

 People assume that the public sidewalk abuts the residential property line.  That’s a logical assumption and one that holds true in St. Paul.  So why isn’t it true in Minneapolis? 

As each neighborhood of Minneapolis was first built, developers dedicated part of their land to public right-of-ways by recording a deed or a plat map.  The location and size of those public easements were dictated by the city planners.  Early street right-of-ways were required to be 60 feet wide in residential areas.  Today, the typical width is 66 feet and the area is usually laid out like this:

For some reason, Minneapolis sidewalks have not been placed along the residential property lines.  Instead, the sidewalk edge closest to the house is usually 2-3 feet away from the property line.  This 2-3 foot wide strip looks like the rest of the privately-owned front yard, but it’s subject to a public easement.  And there are some areas where that public strip is 8-13 feet wide!

I couldn’t find a written explanation about why Minneapolis set the sidewalk away from the property line.  But here are some theories, based upon who might have made the decision.

Must Read: HOA Rental Restrictions – Owner Perspectives.

If a city engineer made the decision, it would have been based on cost efficiencies.  When the “extra” strip is placed next to the property line, the right-of-way construction path is narrower and therefore, cheaper.  A narrower swath requires less grading and fill, and affects fewer trees, fences and retaining walls.

If a city attorney made the decision, real estate law was the decisive factor. Because municipal workers would eventually need to repair the sidewalk, the attorney’s advice was to keep some public property on both sides.  Otherwise, workers would have to obtain permission to trespass from each adjacent owner whenever they needed to work in that area.

If politicians made the decision, it would have been aimed at currying political favor from voters.  The elected officials could have claimed they gave home owners a larger front yard for free (even though a public easement was on part of it).

It’s also possible that traditional construction plans dictated the design simply because no one revised them when circumstances changed.  The pavement, boulevard, and sidewalk fully used the original 60-foot wide street right-of-way.  When a 66-foot width later became the new standard, the older and narrower layout may have continued by default, leaving the “extra” 3-foot wide strip next to the property line.

Regardless of why this occurred, take note.  If you are a Minneapolis homeowner, city workers will mow the grass between the sidewalk and your lot line since it’s public land.  Nah, just kidding.  There has long been a municipal ordinance requiring the adjacent property owner to maintain the area between the property line and the curb.

Christmas Valley
The Story of Christmas Valley

Christmas Valley is an unincorporated area in Lake County, Oregon.  It has a population of 749 and was named after nearby Christmas Lake.  The town didn’t exist until 1961 when the M. Penn Phillips Development Company bought 90,000 acres there.  Penn Phillips was a veteran developer who specialized in creating new communities on desert terrain.  In a 1959 Time magazine article, Phillips claimed to have sold more parcels of land (around 100,000) than any man alive.

His development company quickly built 30 miles of roads, 15 homes, a motel, an airstrip, a 40-acre experimental farm, and an artificial lake.  The developer then began offering free plane trips from California for prospective buyers. 

Penn Phillips was charismatic and the picture he painted of the future Christmas Valley was so inviting that 90% of his land sold within three months.  He alternately described the area as ideal for farming, as a retirement mecca, and as a small town with a vibrant old-fashioned Main Street worthy of a Norman Rockwell painting.  He also preached that real estate investments were a great hedge against inflation. 

What was not well-known in 1961 is that Mr. Phillips started the Christmas Valley project after his California business license was suspended.  That suspension cited his company for engaging in “substantial misrepresentation in land sales and failure to exercise reasonable control over sales personnel.”  

By 1963, the town’s infrastructure was complete but only 203 people lived there.  Most residents were surveyors, road builders, or other employees of the Phillips Company.   The community’s goal of 5,000 people by 1965 was unattainable.  Penn Phillips abandoned the development in 1973, at the age of 86.

I know about Christmas Valley because after my father died, we discovered he owned land there.  No one knows why he bought it.  He faithfully paid the $30 property taxes for many years, but never saw the property.  His parcel is in an undeveloped area surrounded by sand dunes and has a negligible market value.

What’s the moral of this story?   Do thorough research and don’t get caught up in a developer’s hype.  Hire a knowledgeable Realtor® to help you understand the pros and cons of buying in particular areas.  And remember, real estate doesn’t come with a “return or exchange” policy.

Must Read

How to Challenge an HOA’s Rental Policy
How to Challenge an HOA’s Rental Policy

Frustrated condo and townhouse owners who are not allowed to rent out their units under the HOA’s grandfather clause or a hardship exception often ask “Is there anything I can do to challenge the rental policy?”  The answer is yes, but the challenges will not be quick, easy, cheap, or necessarily successful.  The options include:

1.  Become involved in your homeowner’s association and work to change the rental policy

 Get elected to the HOA Board, if possible.  But even without that, you can organize a group of owners who feel similarly.  Ask the Board to begin the process of amending the Governing Documents so that better rules can be adopted.  Provide a draft of the leasing policy that you believe should replace the existing one. 

2.  Advocate for a change in your state’s laws to limit the power of HOA Boards

Only a few states have done this and not surprisingly, they are the ones with the heaviest foreclosure burdens.  As an example, rental rights in Florida condominiums are now grandfathered in by law.  Changes in the ability to rent would only apply to current owners who consented to the amendment or owners who take the title after the amendment is recorded.  Minnesota does not have a similar law.

3.  Are the Fannie Mae mortgage requirements about owner-occupancy the main reason your HOA is rejecting leases? 

If the rental cap has been met but there is further demand by owners, make sure the Board knows that FNMA expanded the allowable percentage of rentals over the past few years.   And even if the condo’s leasing percentage is too high under current guidelines, it is possible to get a waiver.   The key is to find a loan officer willing to apply for a waiver through the FNMA Project Eligibility Review Service (PERS).  You can find more info here.  Also, the highly-desirable FHA loans require an owner-occupancy rate of only 51%.

4.  File a lawsuit against the HOA

This step should never be undertaken lightly.  People who use their homeowner association are essentially suing their neighbors and themselves.  Lawsuits consume cash at an alarming rate and often destroy goodwill in the neighborhood, regardless of who wins.  You should also know that the odds are heavily tilted in favor of the HOA.  The law gives considerable discretion to the HOA Board and its decisions are presumed valid until proven otherwise.

5.  Find a fatal flaw in the amendment process that passed the rental restriction

This route is discussed in the article “HOA Rental Policies – Procedural Flaws That Matter.”