How are overlay districts typically used in zoning?

Overlay districts are a specialized type of zoning that serves to implement additional regulations and protections layered on top of existing base zoning. They allow local governments to address specific community needs without changing the underlying zoning designation, effectively responding to unique situations in areas that may require enhanced oversight or development standards.

For example, an overlay district might be established to preserve historical character, protect environmental features, promote affordable housing, or manage development in sensitive areas. This dual-layered approach allows for more nuanced planning and regulatory control, which can be critical in addressing diverse land use issues.

The creation of new residential areas is typically handled through base zoning classifications rather than overlay districts. Similarly, while overlay districts may help to manage or phase out nonconforming uses, their primary function is not to eliminate these uses. Instead, they focus more on imposing additional requirements on top of the existing zoning framework. Enhancing property taxes is not a direct function of overlay districts; their emphasis is more on land use and regulatory frameworks than on financial aspects like taxation.