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Accessory Unit

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Janice Krishnan, Dec 31, 2005.

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  1. Janice Krishnan

    Janice Krishnan Sophomore Member

    0
    Oct 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    What exactly is an accessory unit? I took the course but this was not explained. I have a dwelling with a separate finished out building with a bathroom (i.e. bedroom and bath). Would this be considered an accessory unit?
     
  2. Chris Colston

    Chris Colston Elite Member

    0
    Jul 24, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    I would think so. As long as it does not generate income. Otherwise it would go on the new 2-4 format.

    I just finished a report that had a guest house in the back, with full kitchen, bath, 2 bedrooms and living room. It was used by the owners of the property as just that, a GUEST HOUSE for their relatives who come from up north to visit in the winter. It does not produce any income, it is not rented and most of the time it is vacant. It was fully compliant with zoning and land use codes as a guest house.
     
  3. Otis Key

    Otis Key Elite Member

    0
    May 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    "Grannie/Gramps", "In-Law", "Teen" quarters that are not rented out from what I understand. In other words, family occupied.
     
  4. CANative

    CANative Elite Member

    532
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    You have to be careful when slinging around these terms. In one of the counties I appraise in, guest unit, granny unit or in law unit, and accessory unit have different meanings and describe different types of improvementrs and uses.

    For instance, a granny unit has a kitchen and a guest house doesn't. In some zoning districts you can have both, some you can have either/or and in other's neither is allowed.

    Chris... if you can rent out a granny unit, why does it HAVE to go on the 2-4 form? Most of the time, these little units generate very little income. And the allowable use is mainly for a family member and the unit would have to be made not suitable for full time occupancy once that use ceased... technically.

    Janice... I usually go with HUD in defining ADU's (Accessory Dwelling Units.)

    They are commonly understood to be a separate additional living unit, including separate kitchen, sleeping and bathroom facilities, attached or detached from the primary residential unit, on a single=family lot. ADUs are usually subordinate in size, location and appearance to the primary unit and may or may not have a separate means of ingresss and egress.
     
  5. Anthem

    Anthem Senior Member

    0
    Mar 10, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Rented or not does not decide which form I would use.


    What decides is what the HBU would be and how it would be best marketed for sale.

    Had an Owner occupied duplex ,should I have done that on the URAR... of course not..

    Renting out what would be accepted as a Guest house in the local Marketplace does not constitute the use of a 2-4 Form.

    Just My Opinion .

    BTW Fannie agrees
     
  6. Anthem

    Anthem Senior Member

    0
    Mar 10, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Ditto
     
  7. Robert Anderson

    Robert Anderson Senior Member

    0
    Nov 27, 2004
    Janice,

    There was a previous thread on this topic at:

    http://tinyurl.com/95669

    It includes some interesting information including HUD's definition of an accessory unit.

    I agree with Preston that you should look to highest and best use. The additional residence is either a rental unit or an accessory unit. With some exception, if it's not one it's the other.

    BTW, I also agree with Preston that the current use of the additional residence is not really relevant.

    Bob Anderson

    [​IMG]
     
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