SFR, ADU, JR ADU

[ZZGAMAZZ]

Califfornis as I understand allows a house and two ADUs on one property. One is called a Junior ADU>? Ok....

But the lender may or may not be able to accept it. So ask them. Otherwise, it is a triplex, ( three unit ).

Yes indeed. A statewide measure implemented a few years affects every jurisdiction, although the corresponding lease standards--both SFR & ADU can be leased if 2 units exist, but at least 1 must be owner-occupied if all 3 exist--have been revised. [Good luck demonstrating market acceptance to a non-complying lease.] And as Dublin noted above, reports going out can't include all 3 units-- as confirmed last night by a lender who confirmed for me that the two new, identical, pending assignments are "non-QM" that will allow all 3 units to be included in the value. Now shaking the bush to find an AMC that will promise me the assignments if I deliver the new lender. Weird IMO that some AMCs will and others steadfastly refuse, although at this point I'm unaware of the lender name so no peripheral prior involvement might sully my efforts...

 

[J Grant]

Yes indeed. A statewide measure implemented a few years affects every jurisdiction, although the corresponding lease standards--both SFR & ADU can be leased if 2 units exist, but at least 1 must be owner-occupied if all 3 exist--have been revised. [Good luck demonstrating market acceptance to a non-complying lease.] And as Dublin noted above, reports going out can't include all 3 units-- as confirmed last night by a lender who confirmed for me that the two new, identical, pending assignments are "non-QM" that will allow all 3 units to be included in the value. Now shaking the bush to find an AMC that will promise me the assignments if I deliver the new lender. Weird IMO that some AMCs will and others steadfastly refuse, although at this point I'm unaware of the lender name so no peripheral prior involvement might sully my efforts...

Stop being so desperate and risk doing bad practice and your license for one fee. Or not. I give up.

 

[ZZGAMAZZ]

Stop being so desperate and risk doing bad practice and your license for one fee. Or not. I give up.

J.G., your perspective is akin to arriving home from work one day to find the locks changed!! I come to expect anything from the AF, but I am shocked at your response to an interesting, challenging, very well paying [$1600] assignment. Call it enterprising, or entrepreneurial, but not desperate by any means. OTOH, desperate is having waited the last 3 weeks for an appraisal assignment after moving lock, stock n barrel 60 miles in response to a promise of unlimited work!

 

[J Grant]

J.G., your perspective is akin to arriving home from work one day to find the locks changed!! I come to expect anything from the AF, but I am shocked at your response to an interesting, challenging, very well paying [$1600] assignment. Call it enterprising, or entrepreneurial, but not desperate by any means. OTOH, desperate is having waited the last 3 weeks for an appraisal assignment after moving lock, stock n barrel 60 miles in response to a promise of unlimited work!

Sorry, but that is my honest response. Others on the AF may feel differently! I do engage with you wrt appraisal issues positively most of the time.

 

[Surf Cat]

I can't find the thread I started a few months ago, but the assignment that went away appears to be coming back into my life.
Questions from before:

My lord you're a glutton for punishment. Why don't you just turn this thing down and do two or three assignments that are super simple that won't get you into hot water?

--I learned from the AF that GSE's will not accept an appraisal with a JR ADU.

Whom here has said that?!

Does that mean that an appraisal cannot be based upon a property with SFR/ADU/Jr ADU, or just that the appraisal of a property with SFR/ADU/Jr ADU cannot include the JR ADU value in the OV?
If the latter of the two alternatives, is a HC required because the Jr ADU that is there is being exclulded from the valuation?

You're putting so much emphasis on what people say here on the forum is the gospel.

You're twisting and contorting your reasoning and vomiting on the Forum with your keyboard.... for a "good fee".

The dude at the BREA is not going to be able to help you as he doesn't know all the parameters of your assignment or where the assignment is.

It's up to YOU to determine the H&BU of the subject property. Along with zoning, legal use, market perception, and the intended purpose of the appraisal. YOU must determine whether the property should be classified as an SFR with multiple ADUs or as a multi-unit property based on the characteristics of the property and local regulations.

Now throw into to the mix that a couple of these ADU's may be non permitted..... do you have the competency to pull all this off...... for a good fee? Sheesh.

Why do you think all this time has gone by and the assignment has circled back to you with a good fee? Doesn't that throw up any red flags for you?

I wouldn't touch this assignment with a 10-ft pole.

 

[glenn walker]

Increase your E & O and establish relationship with a good attorney who can defend you and convince plaintiffs that A single family home with 5 Junior ADUs is not units or a real income propery it's a California hybrid property.

Personally I would use the Somalian learing school defence. The main primary residence is really owner occupied and the tenants are all house guests and not really tenants since it's all inter family DNA living on the property.

If the lender sells the loan to an agency like Fannie/Freddie tell
them to go F off and they needed to put more than 1 ADU Box on their
F up forms and it's a House with 5 Junior ADUs not income property.

Finally If all else fails declare that
your real estate, legal, dating and medical advice comes from your peers on the AF and Fake Book.

 

[Sadie]

I can't find the thread I started a few months ago, but the assignment that went away appears to be coming back into my life.
Questions from before:

--I learned from the AF that GSE's will not accept an appraisal with a JR ADU.
Does that mean that an appraisal cannot be based upon a property with SFR/ADU/Jr ADU, or just that the appraisal of a property with SFR/ADU/Jr ADU cannot include the JR ADU value in the OV?
If the latter of the two alternatives, is a HC required because the Jr ADU that is there is being exclulded from the valuation?

Is thIs a factor that of which a typical loan officer should be aware, or should an appraiser upon considering an assignment advise the LO to discuss with underwriting?

The CA BREA advised me by phone that an appraisal of property with SFR/ADU/Jr ADU could/should include all three units in the SCA valuation, but only the SFR/ADU in the IA, or 1007?
Is that an acceptable premise in peer opinion, or is it client-specific?

That reminds me to request clarification of Nephew Glenn's advice that advice from a state appraisal Board isn't worth squat compared with a real world scenario?

ETC, ETC, ETC regarding any other peer advice about the issue. Regards as always

[BTW, Glenn's previous comments that my services were being requested by lenders who knew that I could be hoodwinked because of my lack of knowledge wasn't accurate. My original post described the coincidence that I was receiving two almost identical assignments; however, the assignments included two different borrowers, two different properties, two different cities, two different counties, two different AMCs, and two different lenders. I appreciate constructive criticism but for an esteemed peer (from whom I have learned so much) to draw a conclusion so speculative forces one to question his motivation. I've been sitting and stewing about being slandered for a month or two, and don't like to defend myself against spurious criticism. . . but I'm preparing to post on the "Jobs Wanted" thread and can't afford to allow my reputation to be sullied--because I can do that for myself without needing help from others!!! LOL]

its a triplex

 

[glenn walker]

Increase your E & O and establish relationship with a good attorney who can defend you and convince plaintiffs that A single family home with 5 Junior ADUs is not units or a real income propery it's a California hybrid property.

Personally I would use the Somalian learing school defence. The main primary residence is really owner occupied and the tenants are all house guests and not really tenants since it's all inter family DNA living on the property.

If the lender sells the loan to an agency like Fannie/Freddie tell
them to go F off. They needed to put more than 1 ADU Box on their F up forms. It's a House with 5 junior ADUs not income property.

Finally If all else fails declare that
your real estate, legal, dating and medical advice all comes from your peers on AF and Fake Book.

its a triplex

 

[Surf Cat]

its a triplex

Not sure if you're being facetious here....

However, if this was a Triplex this assignment would have been done long ago...... this has been going on for months now.... this is like ZZ's third thread on this property.

Can you imagine how many California appraiser's desks this assignment has landed on? They've all looked at the assignment, looked up the subject property and its zoning classification, took into consideration the multiple ADUs, looked up Fannie Mae's guidelines on ADUs, and lastly scoured for comps on the MLS...... even with the increased fee, they all threw it back!  LOL

 

[Sadie]

Not sure if you're being facetious here....

However, if this was a Triplex this assignment would have been done long ago...... this has been going on for months now.... this is like ZZ's third thread on this property.

Can you imagine how many California appraiser's desks this assignment has landed on? They've all looked at the assignment, looked up the subject property and its zoning classification, took into consideration the multiple ADUs, looked up Fannie Mae's guidelines on ADUs, and lastly scoured for comps on the MLS...... even with the increased fee, they all threw it back!  

Check FNMA website. Anything with more than one ADU is to be completed on the 1025 form, up to 3 ADUs. After that its commercial. The extra ADUs are the wave of the future and you need to know what to do with them from an appraisal standpoint.