Housing Choices for a Complete Community

On June 21, 2023, the Chapel Hill Town Council enacted text amendments that increase opportunities for a range of housing types throughout the community. These text amendments have been incorporated into the Land Use Management Ordinance (LUMO), the Town's zoning ordinance.

On January 21, 2026, Council adopted additional text amendments that adjust the requirements for some of these housing types. The new text amendments will be incorporated into the online version of the LUMO by spring 2026. In the meantime, you can review the full set of amendments in the January 21 meeting materials.

What Types of Housing Do these Text Amendments Support?

Single-Family Home + Accessory Apartment

An accessory apartment is a unit with space for cooking, sleeping, and bathroom facilities that may be attached to, within, or detached from the primary house. A detached apartment may be constructed on a separate "sublot."

Dimensional Standards

Minimum Lot Size

  • Minimum lot size required by the zoning district

Maximum Floor Area

  • No more than 1,000 square feet
  • The Planning Director may grant an exception to the maximum floor area in some cases.

Height

  • 29 feet or the height of the primary structure, whichever is less

Impervious Surface Ratio

  • 0.50

Density

  • No more than 1 accessory apartment per zoning lot

Occupancy

  • Typically, no more than 4 unrelated people in the single-family house and accessory apartment. 
  • If the single-family house and accessory apartment are detached and on their own sublots, then up to 4 unrelated people can live in each home.

Parking Maximum

  • 1 parking space per accessory apartment bedroom.

Single-Family Home + Cottage

A second, detached single-family house of no more than 1,500 square feet may be constructed on the same lot as the primary single-family house when the lot size exceeds the minimum lot size by 2,700 square feet. The cottage may be constructed on a separate "sublot." 

Dimensional Standards

Minimum Lot Size

  • Minimum lot size required by the zoning district + 2,700 square feet

Maximum Floor Area

  • 1,500 square feet

Height

  • 29 feet

Impervious Surface Ratio

  • 0.50

Density

  • No more than 1 cottage per zoning lot

Occupancy

  • No more than 4 unrelated people in the cottage

Parking Maximum

  • 1 parking space per cottage bedroom

Two-Family, Attached or Detached

Two (2) housing units that are either attached or detached from each other and located on the same zoning lot. Each unit may be located on its own "sublot."

Dimensional Standards

Minimum Lot Size

  • Minimum lot size required by the zoning district

Maximum Floor Area

  • 5,000 square feet

Height

  • Maximum heights allowed by the zoning district

Impervious Surface Ratio

  • 0.50

Occupancy

  • No more than 4 unrelated people per unit

Parking

  • No minimum parking required
  • Maximum of 4 outdoor spaces on-site

Tree Canopy Coverage

  • 40% of net land area

Three-Family

Three (3) housing units that are either attached or detached and located on the same lot.

Dimensional Standards

Minimum Lot Size

  • Two (2) times the minimum lot size required by the zoning district

Maximum Floor Area Ratio

  • Follows underlying zoning

Height

  • Maximum heights allowed by the zoning district

Impervious Surface Ratio

  • 0.70

Occupancy

  • No more than 4 unrelated people per unit

Parking

  • Follows multi-family parking requirements specified in LUMO 5.9.7
  • Parking shall be located to the side or rear of the structures (not front yard)

Stormwater Management

  • Required

Tree Canopy Coverage

  • 40%

Four-Family

Four (4) housing units that are either attached or detached and located on the same lot.

Dimensional Standards

Minimum Lot Size

  • Two (2) times the minimum lot size required by the zoning district

Maximum Floor Area Ratio

  • Follows underlying zoning

Height

  • Maximum heights allowed by the zoning district

Impervious Surface Ratio

  • 0.70

Occupancy

  • No more than 4 unrelated people per unit

Parking

  • Follows multi-family parking requirements specified in LUMO 5.9.7
  • Parking shall be located to the side or rear of the structures (not front yard)

Stormwater Management

  • Required

Tree Canopy Coverage

  • 40%

Terms

  1. Density:  The number of housing units on a lot.
  2. Floor Area: The square footage of all the floors of the building.  This does not include open terraces, patios, atriums, balconies, carports, garages, breezeways, and screened porches. For more information, see LUMO 3.8.2.
  3. Floor Area Ratio (FAR): The total floor area of all buildings or structures on a lot divided by the lot size. For more information, see LUMO 3.8.2.
  4. Footprint:  The outline of the total area a building covers at the ground level, where it touches the earth.  For more information, see LUMO-Appendix A.
  5. Impervious Surface:  The total square footage of all portions of the lot that are built upon, including areas covered by buildings, pavement, and parking areas. For more information, see LUMO-Appendix A.
  6. Stormwater:  The flow of water which results from a rainfall event.
  7. Stormwater Management:  The system(s) located on a site that control stormwater within an individual development project.  For more information, see LUMO 5.4.
  8. Tree Canopy Coverage:  The sum or total square footage of all areas covered by canopy trees.  For more information, see LUMO 5.7.2.

 

Where Can I Build these Housing Types?

Use our zoning map to look up addresses and determine the zoning district and zoning overlays.

For more information, please see Land Use Management Ordinance, Table 2.7-1: Use Matrix for a list of allowed uses within each zoning district.

Neighborhood Conservation District (NCDs) Overlays:

This ordinance does not change uses permitted in the NCDs.  Most NCDs already prohibit accessory apartments, duplexes, and multi-family housing.  Only the NCDs that already allow these types of housing will continue to permit accessory apartments, duplexes, and multi-family housing will continue to permit these uses.

Housing Choices Ordinance Development

Past Meetings and Meeting Materials

The Chapel Hill Town Council approved the Housing Choices for a Complete Community ordinance on June 21, 2023. 

Past meeting dates:

June 21, 2023 Council meeting

May 24, 2023 Council meeting

May 16, 2023 Planning Commission

May 9, 2023 Historic District Commission Meeting

April 10, 2023 Council Work Session

March 27, 2023 Community Open House

February 22, 2023 Council Public Hearing

  • No discussion
  • Council will close the public hearing and take no action. Council will open a future public hearing at a later date.
  • Meeting Materials

February 16, 2023 Community Open House

February 15, 2023 Community Open House

February 14, 2023 Community Open House

February 8, 2023 Community Open House

February 2, 2023 Community Open House

January 31, 2023 Community Open House

January 25, 2023 Council Public Hearing

January 17, 2023 Planning Commission

January 11, 2023 Public Information Meeting

January 10, 2023 Housing Advisory Board

December 2, 2022 Council Committee on Economic Sustainability

  • LUMO Text Amendment: Housing Regulations and Housing Choices for a Complete Community
  • Meeting Materials

November 16, 2022 Council Meeting

October 19, 2022 Council Meeting

  • Meeting Materials
  • LUMO Text Amendment: Affordable Housing Development Review
  • LUMO Text Amendment: Housing Regulations and Housing Choices for a Complete Community

October 11, 2022 Housing Advisory Board

October 4, 2022 Planning Commission

 

Neighborhood Meetings

Staff held neighborhood meetings with the following groups as part of this project:

  • Greenwood
  • Franklin-Rosemary
  • Glendale
  • Hidden Hills
  • Laurel Hills
  • Colony Woods
  • Pope Road
  • Westwood
  • Lake Ellen

Frequently Asked Questions

Zoning

What is my zoning now that the new ordinance is in effect?

  • Your zoning has not changed since the ordinance went into effect. 
  • Visit  the Town of Chapel Hill Interactive Map to view your zoning.  You can search for addresses and add layers such as zoning, overlay districts, and neighborhoods.

What uses are currently allowed in my zoning district?

What types of residences are allowed in the local Historic Districts?

  • The local historic districts are an overlay zoning district. The types of residences allowed in the local historic districts are based on the underlying zoning.
  • Like all development in the local historic districts, any new housing units will require approval of a Certificate of Appropriateness from the Town’s Historic District Commission.  
  • For more information, visit the Historic District webpage.

What uses are allowed in the Neighborhood Conservation Districts (NCDs)?

  • There have been no changes to the existing uses permitted within the NCDs.
  • Any revision to NCD regulations would warrant a significant amount of community engagement with the residents of the impacted NCDs.

Restrictive Covenants

Can staff tell me if there are restrictive covenants for my neighborhood?

  • Town staff do not have the ability to certify the existence or applicability of restrictive covenants on behalf of community members. The Town recommends community members contact a land use attorney to discuss questions they may have about Homeowners Associations (HOAs) as well as the creation and applicability of restrictive covenants.

Which neighborhoods have restrictive covenants?

Does the Town enforce restrictive covenants?

  • No.  Because restrictive covenants are contracts between private property owners, it is the responsibility of those subject to the covenants to enforce them. 
  • Town staff review land use applications for compliance with the Land Use Management Ordinance (LUMO) and Town Code. 

Are areas covered by HOAs exempt from the Housing Choices ordinance? If a neighborhood enacts an HOA, will that make it exempt?

  • Restrictive Covenants and other HOA agreements are contracts between private property owners that supersede the Land Use Management Ordinance (LUMO) whenever they are more restrictive than the LUMO.  
  • The Housing Choices initiative does not create new opportunities for development on properties that are subject to restrictive covenants or bylaws that allow only a single dwelling unit per lot.
  • The existence of an HOA itself does not exempt a neighborhood from this text amendment. It would depend on the content of the bylaws and covenants. Neighborhoods with restrictions on number of dwelling units per lot can amend their covenants or adopt new covenants that permit missing middle housing forms. 

Development Opportunities and Requirement

What is the difference between an accessory apartment and a cottage?

There are some slight differences between the two types of uses:

Zoning Districts

Single-Family + Accessory Apartment

  • Allowed in all residential zoning districts

Single-Family + Cottage

  • Allowed starting in Residential-1 (R-1) zoning district

Minimum Lot Size

Single-Family + Accessory Apartment

  • Follows underlying zoning

Single-Family + Cottage

  • Minimum lot size of the underlying zoning + 2,700 SF

Maximum Floor Area

Single-Family + Accessory Apartment

  • 75% of the floor area of the primary house or no more than 1,000 SF, whichever is less.

  • Planning Director may grant an exception for floor area.

Single-Family + Cottage

  • 1,200 SF

Footprint

Single-Family + Accessory Apartment

  • Not specified

Single-Family + Cottage

  • 1,000 SF

Configuration

Single-Family + Accessory Apartment

  • May be attached to the main residence or detached

Single-Family + Cottage

  • Must be detached

How many accessory apartments and/or cottages can I build on my property?

  • For every one (1) single-family house, only (1) accessory apartment or cottage is permitted on the lot.

I currently have a single-family house in Residential-1 (R-1). What can I build?

You could build any one of the types of housing units below, and each option has a set of parameters:

Single-Family + Accessory Apartment

  • Accessory apartment limited to no more than 1,000 square feet in size

Single-Family + Cottage

  • Min. Lot Size of 19,700 SF (Min. zoning lot size + 2,700 SF)
  • Cottages are limited to a footprint of 1,000 SF and a floor area of 1,200 SF

Two-Family, Attached/Detached

  • Together, the two units cannot exceed 3,000 SF

Can I convert my existing single-family house into a two-family, attached/detached, house?

Yes, if you meet all requirements, including (but not limited to): 

  • Building code for multi-family, including fire wall ratings
  • Together, the two units could not exceed 3,000 SF in floor area
  • Development standards outlined above, including impervious surface limitations and parking restrictions
  • In Historic Districts, exterior changes would require a Certificate of Appropriateness

What are the occupancy limits of new housing types?

Single-Family + Accessory Apartment

  • No more than 4 unrelated persons total between the single-family house and accessory apartment on the same lot

Single-Family + Cottage

  • No more than 4 unrelated persons in the cottage, and no more than 4 unrelated persons in the single-family house

Two-Family, Three-Family, and Four-Family Attached/Detached

  • No more than 4 unrelated persons per unit

How many cars are allowed for these uses?

Single-Family

  • No parking minimums or maximums

Single-Family + Accessory Apartment

  • Minimum 1 parking space/bedroom in the accessory apartment

Single-Family + Cottage

  • Maximum 1 parking space/bedroom in the cottage

Two-Family, Attached/Detached

  • No parking minimums; no more than 4 parking spaces on-site

Three-Family or Four-Family, Attached/Detached

  • Based on the number of bedrooms
  • See LUMO 5.9.7
  • You may need to reference the adopted ordinance if LUMO does not reflect Housing Choices yet

For more information on current parking requirements, please see Land Use Management Ordinance (LUMO) 5.9.7.

The Town recognizes the demands for on-street parking, especially around the University of North Carolina-Chapel Hill campus and adjacent downtown neighborhoods.  The Residential Parking Permit program currently allows qualifying residents within the Town’s 16 residential parking districts to obtain a permit.  The number of permits may not exceed the number of licensed vehicles registered to the residence address. No more than five permits per lot is permitted no matter how many housing units are on the lot. 

Can a developer tear down a single-family home on a lot, subdivide the lot, and build more than one unit?

  • Staff does not have the ability to prohibit demolitions.  A property owner can demolish an existing single-family home and then subdivide the lot if the new lots meet the minimum lot size requirements of the zoning district.

What guarantees or mechanisms are in place to ensure these new housing types are filled by those who want to make Chapel Hill their home, such as first-time home buyers, young families, divorcees, empty nesters, and retirees?

  • The purpose of introducing these housing types is to permit a diversity of housing opportunities that will increase supply and address the needs of different price-points and life stages. The Land Use Management Ordinance (LUMO) cannot regulate who occupies housing units.

 

Guardrails and Monitoring

How will the Town monitor the results of the Housing Choices Ordinance?

Initially, staff will monitor the following metrics:

  • Building permits issued for the new housing types
  • Zoning compliance permits issued for the new housing types
  • Number of demolitions specifically related to these new housing types (i.e. removal of single-family house to create two-family or three-family)
  • Zoning districts in which development occurs

Are there safeguards to be sure that one neighborhood does not receive several new construction projects per year?

  • Based on the results of similar housing reforms in other communities, staff anticipates that changes to existing neighborhoods will be incremental.  Staff will monitor developments that may result from this ordinance closely and share their findings with Council.  Monitoring will give staff the opportunity to tweak the Land Use Management Ordinance (LUMO), as necessary, to address any unintended consequences.
  • Currently there are no limits to the number of single-family building permits that can be issued each year.  This might mean a single neighborhood may see several construction projects for new houses within a year’s time.   Staff is investigating ways to ensure that a single neighborhood does not see significant increases in the number of new housing units constructed due to the Housing Choices Ordinance and will not be inundated by construction activity.  

Could this proposal create more corporate and absentee landlords?

  • The Town does not have the ability to regulate ownership; however, our Code Enforcement team does regulate nuisances such as illegal parking, garbage, and excessive noise. 

Can these units be used as short-term rentals (STRs)?

Some new housing types may be able to be used as STRs.  There are two types of short-term rentals (STRs) permitted in Chapel Hill:

  • Primary residence STRs, in which a STR operator lives on site most of the year, are permitted in almost all zoning districts.
  • Dedicated STRs, in which there is no primary resident, are limited to commercial and mixed-used zoning districts.

For more information about STRs, please see Land Use Management Ordinance (LUMO) 6.27