Creating an overlay district is a process by which local governments create specific land uses within established boundaries or criteria. DAAR believes overlay districts can be beneficial if used in either a market or environmental protection purpose, so long as the associated regulations:
1) are implemented to fix an actual problem;
2) property owners are notified directly;
3) are understandable to property owners;
4) do not diminish the value of the properties; and
5) do not have an adverse financial impact on existing property owners.
Property owners must be aware that if overlay districts are used to regulate land use without their notice or agreement, their private property rights and ability to use their land as they see fit may be compromised.