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- Townhome Exemption Development (TED)
What is a TED?
A Townhome Exemption Development, or TED is a legal process for dividing land to create ownership units. It is similar to condominium agreements, but also mandates that owners also possess the land underneath their dwelling unit. A TED is a residential development containing one or more dwelling units that are owned subject to an arrangement under which persons own their own dwelling units and hold separate title to the land beneath their dwelling units but under which they may jointly own the common area and facilities (in accordance with state law, MCA §§ 70-23-102 and 76-3-203).
The TED process was created to divide land without requiring subdivision. This tool is intended to encourage urban infill on land that has already been investigated through a previous subdivision process.
TEDs are for residential development only. Townhome Exemption Development (TED) projects are ten or fewer dwelling units in RT5.4, RT10, and all R districts (except R3), or 20 or fewer dwelling units in RT2.7, R3, and all RM, B, C, and M1R districts. Developments that exceed these numbers are not permitted through the TED process.
| TED Project includes the following: | R Districts (except R3), and RT5.4 and RT10 Districts | RT2.7 and R3 Districts All RM Districts All B, C, Districts and M1R |
| One (1) to ten (10) total dwelling units | Administrative Approval, Comply with Zoning | Administrative Approval, Comply with Zoning |
| Eleven (11) to twenty (20) total dwelling units | Prohibited as TED | Administrative Approval, Comply with Zoning |
| More than twenty (20) total dwelling units | Prohibited as TED | |
| Property is not suitable for TED (20.40.180.B) | Prohibited as TED | |
A TED Ownership Unit, or TOU, is a parcel created through Townhome Exemption (MCA § 76-3-203) that includes the land beneath each dwelling unit and can include land adjacent to each dwelling unit as shown in the approved Townhome Declaration Site Plan. Only one dwelling unit is associated with each TED ownership unit. TED Ownership Units (TOUs) are not lots and therefore minimum lot standards of the overlying zoning district do not apply.
Townhouse refers to a residential building type containing more than one dwelling unit with a common or abutting wall. Each has its own external entrance, and each is located on its own parcel or TED ownership unit (as described in Title 20, 20.05.030.B.3 and Standards in Title 20, 20.40.140).
Townhome Exemption Development refers to a development type consisting of residential dwellings that may be single unit or townhouse and owned in fee simple on TED Ownership Units (TOUs) and located on a TED Parcel as described in Title 20, 20.05.040.D.
So not all TEDs are Townhouses and not all Townhouses are TEDs!
- Determine if your project and parcel are suitable for a TED. Use the resources on Research Your Property and the Municipal Zoning Code Title 20, Section 20.40.180 - Townhome Exemption Development Standards.
- If you believe your project and parcel are suitable for a Townhome Exemption Development, submit a Permit Intake Form for a Project Review Team (PRT). Due to the complexity of TEDs, it is best to make sure the project would be in compliance. A PRT is a comprehensive, hour-long virtual meeting with the zoning, building, and engineering departments. The Permit Intake Form can be found here and submitted, with plans and a list of questions, to zoningdesk@ci.missoula.mt.us.
- TEDs are applied for through a Zoning Compliance Permit, or ZCP. The Zoning Compliance Permit is found here.
- The submittal requirement for TEDs:
- a site plan showing each TED building envelope and TOU lines
- building height
- if proposing townhouses, materials to demonstrate compliance with the Title 20, Chapter 20.40.140 Townhouse Use and Building Specific Standards will be required at building permit.
- fee
5. The ZCP is reviewed by an assigned case planner for compliance. There is a twenty day deadline for approval or denial.
6. The certification letter is sent to the property owner, in addition to their representatives or the applicant.
7. Following preliminary approval of the TED project, a final TED declaration must be filed with the County Clerk and Recorder.
8. TEDs are expired, or invalid, if no action is taken within two years of issuance. Action is either filing the declaration or completing an approved building permit. There is an expiration date on the issued certification letter.
- Would a TED be permitted at my parcel?
- What is a TED Declaration?
- What type of structures/dwelling units are appropriate for a TED?
- What is parkland dedication?
- What can I do about a neighboring TED proposal?
- Is parking required for a TED?
- Can I build an ADU if my primary dwelling is a TED?
- Can you convert a condo to a TED?