Non-residential activities in residential areas
Abstract
Non-residential activities in residential areas provide for home-based employment and economic diversification. They can also provide valued services for the local community. However, they may also be regarded by a community as a symptom of residential decline and causing a loss of amenity values.
Best practice in managing non-residential activities in residential environments requires decision makers to reconcile these conflicting factors. This guidance note is intended to assist with the formulation of district plan provisions for non-residential activities in residential areas. Brief mention is made of new mixed use developments, but the primary emphasis is on existing residential areas.
Practitioners must have sound information on the changes taking place in the community and the nature and resilience of the host residential environment, accompanied by ongoing monitoring of community feedback, consent applications and case law.
This guidance note does not address non-residential activities outside residential environments.
Guidance note
What are non-residential activities?
Virtually all district plans in New Zealand have a zoning model that identifies areas for residential (or living) purposes, within which residential activities are dominant and an associated high level of amenity values is expected. These amenity values include visual quality, open space, gardens, trees, low noise levels, limited traffic generation and other characteristics people usually associate with domestic life.
Non-residential activities can range from those associated with self-employment in the home, to a wide range of employment, community support and commercial activities that may entirely displace residential occupation. These categorisations have often resulted in three classes of non-residential activities in plans.
Why are non-residential activities in residential areas a planning issue?
Traditionally New Zealand residential communities have segregated residences and workplaces. As a result, there has been ongoing community concern about non-residential activities establishing within, or encroaching into, residential areas, as evidenced by the number of notified resource consents, and a steady (albeit small) volume of evolving case law. The degree to which non-residential activities are tolerated is influenced by the character and status of the host community.
However, in recent years there has been a trend to encourage mixed use in some modern suburban developments (the 'new urbanist' model), and within existing residential areas close to public transport, which allows for redevelopment at higher densities. In New Zealand this approach has largely been confined to the major urban centres. Given these changes and ongoing development pressures, non-residential activities need to be appropriately managed by plan provisions and through the resource consent process.
Non-residential activities may seek to establish in residential environments under the following scenarios:
Adverse and positive effects of non-residential activities
Adverse effects can be tangible or intangible. Tangible effects include:
Intangible adverse effects may include:
Positive effects of non-residential activities may include:
As part of a planned mixed-use community, such activities may help facilitate less dependency on car travel and enhance urban sustainability. For some people, a mixed-use urban environment will be a more diverse and interesting place to live.
Formulating strategies for managing non-residential activities
A wide range of approaches can be taken to this issue, and the best one will depend on local circumstances. The actions listed below will assist in formulating a strategy for managing non-residential activities.
Establishing an information base
It is necessary to have a good understanding or 'reading' of the urban environment in order to justify any differentiation by zoning. This may include undertaking the following.
This information can both help identify both what standards are appropriate, and issues that cannot be addressed through regulatory means.
Regulatory approaches taken in district plans
Regulatory control is likely to be the primary management tool for controlling non-residential activities in residential areas. This is reflected in district plans generally. Plans can adopt an effects-based approach (with little or no identification of particular activities), an activity-based approach, or a combination of both. The approach adopted will have significant ramifications for rule drafting.
Plan strategy
Objectives and policies
Rules - activity-based approach
Rules - effects-based approach
In the case of effects-based plans, similar principles apply but are linked to the threshold level set in the rules, which for non-residential activities may include floor-space limits, traffic generation levels, requirements for continued on-site residential occupation, and noise levels. This approach requires a judgement as to the relative significance of non-compliance and the consequent activity status.
Effects checklist
Thresholds in effects-based plans are quantifiable standards that trigger consent. In activity-based plans they can form the basis of assessment criteria, without necessarily being in the form of a rule. A possible effects checklist is as follows.
- Setbacks from waterways
A plan need not contain all of these standards, and may include any combination of them. 'Hybrids' between these two models may well prove to be the most practicable approach.
With effects based plans in particular, it is important that standards are not subjective to the point that the status of the activity is unclear.
Enforcement
Non-residential activities in residential areas are one of the main sources of complaints to councils. This reinforces the need for a clear policy framework so that the public's expectations as to what the plan can deliver are realistic. Where standards are set these must be legally certain, so that the plan can be enforced.
Assessment matters
Assessment matters can be added to the plan to assist decision making, and are in addition to and not a substitute for the matters in Section 104 of the Act. Assessment matters are not required under Section 75 of the Act, but will assist the decision-making process for controlled and discretionary activities, and may be taken into account under Section 104(1)(c) of the Act. They are not policies, but provide more detailed guidance, particularly to an applicant as to the factors a Council considers is relevant when consent is required under a particular rule.
Assessment matters can enable the council to address factors it considers important, but which are too subjective to qualify as rules. For example, assessment matters could take into account factors such as external appearance (e.g. will the non-residential activity take place in a building that looks residential in appearance and is of a similar scale?).
Definitions
If an activity-based approach is adopted, identified activities will be given particular status within zones (e.g. preschools, discretionary activity). In this case, although rule drafting is easier, accurate definitions assume critical importance.
Non-regulatory approaches
The concept of mixed use
For some larger urban areas, increasing emphasis has been given to proactively encouraging a mix of residential and non-residential activities. This is usually associated with new greenfield developments (with associated structure plans), or around major transport nodes in the existing urban area where public transport is a viable alternative.
Note that this means 'mixed use' as part of a comprehensively designed development, not the establishment of stand-alone business activities among existing houses in declining residential areas. Contemporary mixed-use developments mean residential activities are usually established above street level, with compatible low-impact non-residential activities at street level, similar to the land-use pattern found in many European cities (e.g. cafés, small shops, offices).
Councils as landowners, and roading and regulatory authorities, can proactively provide for mixed-use development, but at a rate the host community feels it can accept. Preferred locations are:
There also needs to be a commitment by the council to enhance public spaces in higher-density developments involving mixed uses, particularly in respect to roads, footpaths, street furniture, traffic management, stormwater and sewer upgrading, parking and landscaping.
Section 32 and other methods
The nature of non-residential activities is such that regulatory intervention at a policy and rule level is the only viable method for dealing with the issue. (Refer to the Section 32 - Methods of Implementation guidance note. This note provides for good practice tips and techniques for Section 32 analysis and implementation.)
Monitoring
Change within residential areas will usually only take place slowly. However, it will be appropriate to undertake monitoring at the time of plan reviews or when major variations or plan changes are undertaken. An exception to this approach may be required if the council is unsuccessful on appeal, or a major controversy arises over a particular land use. In these circumstances an investigation of what went wrong should be initiated (refer to the Policy and Plan Effectiveness Monitoring guidance note for good practice tips on monitoring and evaluating the suitability and effectiveness of plans).
The establishment of non-residential activities inevitably involves a balance between economic diversification and enabling community support services on the one hand, and protection of residential integrity and amenity on the other.
Best practice examples
The following examples illustrate best practice in particular aspects of plan preparation, as described in the guidance note.
Planning for non-residential activities in residential area: Objectives, policies and rules: Auckland City Plan
Auckland City Plan, Part 7, Section 7.7 of the Isthmus Section, pp.
A18-A22 (PDF 312KB)
The Auckland City Council provides a comprehensive residential activity
table, which establishes the status of various non-residential activities,
taking into account the impact of location, scale, and generated effects
on neighbouring sites and the local environment when administering
development control in relation to non-residential activities in residential
zones.
Contact: Isthmus and Islands Resource Management Group: (09) 379 2020.
Planning for non-residential activities in residential areas: Objectives and policies - Wellington City District Plan
Volume
1 of the Wellington City District Plan, Objective 4.2 and associated
policies (PDF 78KB)
The Wellington City Council actively encourages mixed use within the
residential areas through their effects-based objectives and policies.
The Wellington City District Plan uses zones, activities and definitions
to address the issues associated with non-residential activities in residential
areas.
Contact: District Plan Team: (04) 499 4444.
Planning for non-residential activities in residential areas: Objectives and policies - Dunedin District Plan
'Residential'
section of the Dunedin District Plan, Objective 8.2.1 and associated
policies (PDF 57KB)
The Dunedin City Council has established provisions within the district
plan which regulate non-residential activities by controlling the scale
and design of buildings and the scale of proposed activities.
Contact:
Dunedin City Council: (03) 477 4000.
Planning for non-residential activities in residential areas: Objectives, policies and rules: Christchurch City Plan
Proposed Christchurch City Plan Volume 2, Objectives 9.1 and 11.3 and
associated policies (PDF 101KB)
The Proposed Christchurch City Plan provides a useful example of an effects-based
plan, whereby activity status is dependent on compliance with various
rules. The objectives and policies relating to non-residential activities
in residential areas provide guidance on the environmental results anticipated
in each zone.
Contact: Civic Planning: (03) 379 1660.
Planning for non-residential activities in residential areas: Policies - Hastings District Plan
Section 8 of the Hastings District Plan, Objective 8, Policies
RZP5, 10 and 11 (PDF 71KB)
The Hastings District Council uses a mix of activity-based
and effects-based rules to address issues relating to non-residential activities
in residential areas. The policies address various effects often generated
from non-residential activities in residential areas, providing useful
guidance for planners.
Contact: Environmental Planning: (06) 878 0500.
Planning for non-residential activities in residential areas: Rules - New Plymouth District Plan
Volume 1 of the New Plymouth District Plan, pp. 183-216 (PDF 599KB)
The New
Plymouth Proposed District Plan relies on effects-based rules, rather than
identification of activities (and their definition), as the basis for regulatory
control. The objectives and policies in living zones are focused on effects
in those zones (e.g. noise) rather than the generic issue of non-residential
activities per se.
Contact: New Plymouth District
Council: (06) 759 6060.
RMA provisions
The current relevant RMA provisions are:
Also relevant is the First Schedule of the RMA - Preparation and change of policy statements and plans by local authorities.
Case law
Related guidance notes
The following guidance notes are related:
- Consultation process
- Policy framework
- Section 32 - methods of implementation
- Writing provisions for regional and district plans
- Structure plans
Current challenges in practice
Justification for controlling non-residential activities
The enabling provisions of Sections 5 and 9 of the Act require councils and practitioners to take into account any positive economic benefits of non-residential activities. The challenge is to clearly justify plan provisions restricting non-residential activities in residential environments. Generalised policy statements about protecting amenity will not be enough. Failure to provide for non-residential activities in other ways or locations, and reliance on generalised policies, will not augur well for success if challenged in the Environment Court.
Management of non-residential activities can be achieved under either effects- or activity-based plans. However, it is important to start with clear objectives and specific policies which provide clear guidance rather than paraphrasing sections of the Act. Policy guidance and assessment matters that specify circumstances in which activities will or will not be favoured are to be preferred.
Degree of regulatory intervention
Rules need to ensure that the activity status reflects what the council anticipates to be the degree of regulatory intervention required and the level of involvement by third parties (i.e. controlled, restricted discretionary, discretionary or non-complying). A mismatch between levels of effects and consent categories can negate policy provisions, and either result in unnecessary consents on the one hand, or erode the integrity of residential areas on the other. For example, making a preschool a controlled activity may be inappropriate if noise problems cannot be mitigated on a particular site.
Acknowledgements and editorial comments
This guidance was prepared by Bob Nixon and Tim Joll, Planit (R.W. Batty and Associates). Best efforts have been made to make correct references to legislation and the work of others, but in all instances refer to the original source.
Thanks and acknowledgement to John McSweeney of the Ministry for the Environment for peer reviewing the notes.
The guidance note was updated in March 2006 by Vicki Barker and Matthew McCallum-Clark of Incite.
This guidance note was prepared in February 2004 and updated in March 2006.
