One simple question ?

[Ray Miller]

We do have on occasion 2-4 dwellings which have a commercial classification. They typically were at one time used for commercial purposes but are now used as residential. Most lenders treat it as such being as the City of New York classification system can be misleading at times. I have no idea what you are dealing with Ray in terms of legal usage etc...but I have seen it before. Typically is was street level unit used for day care or something similar and reverted back to residential but the City never changed the classification.

Picture a 1920 two story square home converted to a duplex, one apartment on each level. Then take the front porch extend it out another 10 feet and enclosed it, put retail space on each side with big open windows and a door that splits both sides.

 

[Mike Boyd]

Check with zoning----not just the classification, but its allowable uses. I discussed here in the forum last year about a new subdivision that had two living units upstairs and commercial space below. City zoning stated commercial use of the lower level was acceptable but the entire building had to remain residential. Theoretically, the design was to be for mom, pop and gramma to live upstairs while operating the store downstairs. It was not an allowable use to rent out the store or the living area. It ALL had to be owner occupied. They did allow the smaller, 2nd story living area to be rented to an employee. So, I did the report on a 1004. It was NOT rental property by land use restrictions.

 

[Tim Schneider]

Ask them for a copy of the old report, "so you will know what to do", then forward to the board.

 

[Kevin Mc]

Check with zoning----not just the classification, but its allowable uses. I discussed here in the forum last year about a new subdivision that had two living units upstairs and commercial space below. City zoning stated commercial use of the lower level was acceptable but the entire building had to remain residential. Theoretically, the design was to be for mom, pop and gramma to live upstairs while operating the store downstairs. It was not an allowable use to rent out the store or the living area. It ALL had to be owner occupied. They did allow the smaller, 2nd story living area to be rented to an employee. So, I did the report on a 1004. It was NOT rental property by land use restrictions.

I remember that discussion very well. We have "artist in residence" units like that in NY as well.Commerical usage for the owner only, classified as 100% residential.

 

[Karl]

Ask them for a copy of the old report, "so you will know what to do", then forward to the board.

Forwatd it BUT!! skip the board go to AG, RE Fraud Division, FBI & The best one & most active now is IRS.

 

[Pamela Crowley (Florida)]

Send it anywhere except the WI appraisal board.