Handling potential basement ADU

[juck224]

I got a revision request stating that the basement appears to meet Fannie Mae’s definition of an ADU—it has a full kitchen, bathroom, bedroom(s), separate egress/ingress via a walkout, and an expectation of privacy. They’re asking me to confirm whether it’s permitted and allowed per zoning.

Here’s the issue: I’m really struggling to determine if it’s actually allowed under zoning. I can’t find anything in the municipal code that directly addresses basement ADUs. The only thing I’ve found is a zoning clause that says separate dwelling units are not allowed in accessory structures—but this is clearly part of the main dwelling, not a detached structure.

Permitting status is also tough to verify. As usual, that’s beyond the scope of the appraisal, and I don’t have documentation confirming if it’s legally permitted as an ADU or just a finished basement with extra amenities.

Anyone run into something similar? How do you typically comment on this in a report when the zoning language is vague and permits are unknown?

Appreciate any insight

Also side note, I have a comp that is basically the same. Finished basement with kitchen, bath, bedrooms etc. I’m wondering if that is also considered an ADU per FNMA, considering its separate means of egress would be an egress basement window rather than a full walk-out. Thanks again.

 

[J Grant]

Is there direct access from the basement to the main dwelling?
If so, I don't see how it is totally private -wrt the expectation of privacy. Normally, an ADU does not have access/egress into the main dwelling- though Fannie allows it to have access into a main dwelling, it also must have its own exterior access (which this apparently does ).

Don;t look for zoning to allow basement ADU, look for zoning that allows ADU or guest houses. (which one assumes covers any configuration of an ADU . including a basement)

Otherwise, it gets credit as an in-law suite, a finished area with its own kitchen and bath

 

[sputnam]

I got a revision request stating that the basement appears to meet Fannie Mae’s definition of an ADU—it has a full kitchen, bathroom, bedroom(s), separate egress/ingress via a walkout, and an expectation of privacy. They’re asking me to confirm whether it’s permitted and allowed per zoning.

Here’s the issue: I’m really struggling to determine if it’s actually allowed under zoning. I can’t find anything in the municipal code that directly addresses basement ADUs. The only thing I’ve found is a zoning clause that says separate dwelling units are not allowed in accessory structures—but this is clearly part of the main dwelling, not a detached structure.

Permitting status is also tough to verify. As usual, that’s beyond the scope of the appraisal, and I don’t have documentation confirming if it’s legally permitted as an ADU or just a finished basement with extra amenities.

Anyone run into something similar? How do you typically comment on this in a report when the zoning language is vague and permits are unknown?

Appreciate any insight

Also side note, I have a comp that is basically the same. Finished basement with kitchen, bath, bedrooms etc. I’m wondering if that is also considered an ADU per FNMA, considering its separate means of egress would be an egress basement window rather than a full walk-out. Thanks again.

Go to the zoning office and ask. Take notes to include in your work file... including the date, time, the name of the zoning official you spoke with, and what they tell you.

 

[J Grant]

I got a revision request stating that the basement appears to meet Fannie Mae’s definition of an ADU—it has a full kitchen, bathroom, bedroom(s), separate egress/ingress via a walkout, and an expectation of privacy. They’re asking me to confirm whether it’s permitted and allowed per zoning.

Here’s the issue: I’m really struggling to determine if it’s actually allowed under zoning. I can’t find anything in the municipal code that directly addresses basement ADUs. The only thing I’ve found is a zoning clause that says separate dwelling units are not allowed in accessory structures—but this is clearly part of the main dwelling, not a detached structure.

Permitting status is also tough to verify. As usual, that’s beyond the scope of the appraisal, and I don’t have documentation confirming if it’s legally permitted as an ADU or just a finished basement with extra amenities.

Anyone run into something similar? How do you typically comment on this in a report when the zoning language is vague and permits are unknown?

Appreciate any insight

Also side note, I have a comp that is basically the same. Finished basement with kitchen, bath, bedrooms etc. I’m wondering if that is also considered an ADU per FNMA, considering its separate means of egress would be an egress basement window rather than a full walk-out. Thanks again.

This is where appraising can become a nightmare, as there is overlap or grey areas, and sometimes zoning is impossible to get an answer from or a clear answer from.

IDK, but seems simpler to respond that even if the basement meets Fannie's definition of an ADU, for HBU, it has to be permitted/allowed per zoning, and you can not verify if it is allowed under zoning. Therefore, it is valued as a finished basement suitable for in-law suite use with a bathroom and kitchen, and sep additinal egress, and that comp # has a similar finished basement with a kitchen and bathroom.

 

[swandel1]

Pick up the phone and call the zoning office......

 

[juck224]

Pick up the phone and call the zoning office......

Yep, I just spoke with them. They informed me there is no explicit mention of accessory dwelling units in the zoning text, as they are clear to delineate between single family and two family only; no ADU’s. I also think the reasonable expectation of privacy is not met, as the basement has exposure from the first floor and is not closed off by any door, etc.

 

[Tom D]

Did you ask why the owner had this setup in the basement. Maybe a relative or family member was using it, or whatever. I don't think you need zoning for a relative or family member to be in the basement. If this is an adu, then the comp is an adu. Now it's adu non sense. You might need zoning for it to to be rented to a non relative. That's the question, not how the basement is finished. It's not an adu, to keep my head from exploding. Not sure how to answer this. Most adu are above ground, ansi GLA. Same value adu use, or finished basement.
So if it is an adu you now have to take out the basement, adjust on the comps with basement. Then put it on an adu line and adjust for it. It becomes a wash item, nothing changes but the utility of that space. Good post, now shoot me when i get one like that. But now i know.

An ADU, commonly referred to as an accessory apartment or in-law suite, is a smaller additional living space on the same lot as a single-family home. It must include space for living, sleeping, cooking and bathrooms independent of the primary residence. While the ADU may or may not include access to the primary residence, it must be accessible without going through the primary residence and there must be some expectation of privacy from the home.

 

[CGinMN]

If all that’s required to meet the expectation of privacy is a door, then it’s an ADU. Just like removal of a stove does not change the ADU classification, nor would removing a door.

 

[CGinMN]

 

[timd354]

Yep, I just spoke with them. They informed me there is no explicit mention of accessory dwelling units in the zoning text, as they are clear to delineate between single family and two family only; no ADU’s. I also think the reasonable expectation of privacy is not met, as the basement has exposure from the first floor and is not closed off by any door, etc.

As far as Fannie Mae is concerned, if the basement is not closed off from the rest of the home by a door (and one that that occupants of the basment can lock out access from the rest of the home), then there is not an ADU in the basement, end of story, as it would not meet the requirement listed in Fannie's Guidelines as the basement would be open to the rest of the home with no expectation of privacy.