Handling potential basement ADU

[J Grant]

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What a PITA for the appraisers - provide TWO similar comps - just call it an inlaw suite in a finished basement and be done (imo ). the zoning does not explictily allow an ADU so as an appraiser I personally do not want to go out on a limb over it. HBU is a legal use - Fannie will UW a doghouse now it seems , but later they will go after anyone they want - jmo.

 

[juck224]

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.

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Yep, this is what I concluded, and in consideration of its Highest and Best Use, the zoning officer informed me it is allowed in that district as a single-family residence only, with no separate dwelling units. Thus, its current use is single-family without an ADU, and it's highest and best use is it's current use, as closing the entrance to the main dwelling would make it considered a two-family dwelling under current zoning ordinance, which would be an illegal use. Thanks all for the help!

 

[juck224]

What a PITA for the appraisers - provide TWO similar comps - just call it an inlaw suite in a finished basement and be done (imo ). the zoning does not explictily allow an ADU so as an appraiser I personally do not want to go out on a limb over it. HBU is a legal use - Fannie will UW a doghouse now it seems , but later they will go after anyone they want - jmo.

I forgot to mention, regarding the build-up, my closest comp is 15 miles away . I was lucky enough to find another comp with a similar kitchen in the basement.

 

[J Grant]

UW or a reviewer can suggest X and ask about Y, which they are allowed to do, but in the end, it is our name, signature, and liability on the appraisal—not theirs.

 

[djd09]

it is a finished basement...and maybe a cost to cure to remove the kitchen...the last thing i would do is call the zoning dept...put that onus on the lender and borrower...why do you want to get caught in that mess

 

[chad hampton]

You just described pretty much every finished basement in my market. They all have little kitchenette areas. They’re certainly not an adu.

What’s the issue with having a kitchenette down there? Finished basements are big social areas, of course you would want a stove, refrigerator sink and dishwasher.

 

[J Grant]

You just described pretty much every finished basement in my market. They all have little kitchenette areas. They’re certainly not an adu.

What’s the issue with having a kitchenette down there? Finished basements are big social areas, of course you would want a stove, refrigerator sink and dishwasher.

As far as I am aware, Fannie allows second kitchens now ( typically). They used to make a big deal about it. Ask to remove the stove and so on.

 

[djd09]

technically, there are no more basements...just above and below grade...one inch or bust and soon no exception code, right resguy?

 

[timd354]

As far as I am aware, Fannie allows second kitchens now ( typically). They used to make a big deal about it. Ask to remove the stove and so on.

There is no reason to request to remove the stove as that makes absolutely no difference as to whether or not Fannie considers the area to be an ADU.....see the applicable portion of the Fannie guideline pasted and highlighted below:

 

[J Grant]

There is no reason to request to remove the stove as that makes absolutely no difference as to whether or not Fannie considers the area to be an ADU.....see the applicable portion of the Fannie guideline pasted and highlighted below:

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Thanks, but I was not referencing removing the stove in relation to teh issu of an ADU; I was pointing out that Fannie used to require the removal of a second kitchen in an SFR.