ADU / 2 Family

[Mary Brose]

Fannie Mae stipulates that an Accessory Dwelling Unit (ADU) must contain a sleeping area. However, it does not specify whether this sleeping area needs to be partitioned off, as indicated by HUD, or if it can simply be any part of the living area where a bed is set up. I am attempting to determine whether my subject property qualifies as having an ADU or a two-family unit. The property has been rented to the same tenant for the past ten years. This area is in the basement of a single-family home and, while it has a different heat source than the main house, it does not have separate utility meters, or a separate mailing address. The subject property is situated in a small rural village with no zoning. Additionally, the county in which it is located does not have building codes, and no permits are required.

 

[Zoe]

It appears to be a two unit to me. It is attached to the main house. Does it have separate entrance to the 2nd dwelling? In the last one I did similar I used the small residental income appraisal report,

FNMA form 1025. It appears on your subject that the owner lives there and one dwelling is separated by a door or something to the second dwelling.

It likely won't make much difference in your value opinion. But if it is going FHA, then FHA is best one to tell you which form to use and how to classify it.

 

[Zoe]

I'll expound. I used what some would consider duplexes for my sales comps and whatever I could find for my rent comps. The FNMA form 1025 will walk you through the process.

It is not unheard of for a dwelling similar to a studio have a sleeping area, bathroom, kitchen area TV area (all in a relatively open floor plan).

Bathroom needs a door.

Have to be careful on H&B use because sometimes a property can have higher value and best use being 1 unit instead of 2 units and vice versa 2 units instead of 1 unit.

 

[J Grant]

Fannie Mae stipulates that an Accessory Dwelling Unit (ADU) must contain a sleeping area. However, it does not specify whether this sleeping area needs to be partitioned off, as indicated by HUD, or if it can simply be any part of the living area where a bed is set up. I am attempting to determine whether my subject property qualifies as having an ADU or a two-family unit. The property has been rented to the same tenant for the past ten years. This area is in the basement of a single-family home and, while it has a different heat source than the main house, it does not have separate utility meters, or a separate mailing address. The subject property is situated in a small rural village with no zoning. Additionally, the county in which it is located does not have building codes, and no permits are required.

. A sleeping area can be part of a main room - plenty of folks in cities live in what is called a studio apartment, and in SFR or small income properties, it is called an efficiency - one main room with a kitchenette or kitchen and a bathroom. The open space used for dining, living, sleeping. Some folks who live in these places section a sleeping area off, and some don't. They might hang a curtain up, or use a Murhpy bed, use a sleep couch, or sometimes just leave the bed out there.

 

[Dublin ohio]

Fannie Mae stipulates that an Accessory Dwelling Unit (ADU) must contain a sleeping area. However, it does not specify whether this sleeping area needs to be partitioned off, as indicated by HUD, or if it can simply be any part of the living area where a bed is set up. I am attempting to determine whether my subject property qualifies as having an ADU or a two-family unit. The property has been rented to the same tenant for the past ten years. This area is in the basement of a single-family home and, while it has a different heat source than the main house, it does not have separate utility meters, or a separate mailing address. The subject property is situated in a small rural village with no zoning. Additionally, the county in which it is located does not have building codes, and no permits are required.

Zoning or building codes notwithstanding, does the basement unit conform to typical safety requirements

 

[Mark K]

Sounds more like an SFR with a mother-in-law quarters to me.

 

[J Grant]

Fannie Mae stipulates that an Accessory Dwelling Unit (ADU) must contain a sleeping area. However, it does not specify whether this sleeping area needs to be partitioned off, as indicated by HUD, or if it can simply be any part of the living area where a bed is set up. I am attempting to determine whether my subject property qualifies as having an ADU or a two-family unit. The property has been rented to the same tenant for the past ten years. This area is in the basement of a single-family home and, while it has a different heat source than the main house, it does not have separate utility meters, or a separate mailing address. The subject property is situated in a small rural village with no zoning. Additionally, the county in which it is located does not have building codes, and no permits are required.

One assumes that the tenant who has been renting it for ten years falls asleep at some point !

 

[Zoe]

When I think of partition on a sleeping area, it makes me think one unit has a partition from the other dwelling, either inside and or outside.

Like duplexes have their own interior access from some place. Same with ADU in my mind.

I lived in small apartment one time where the only thing there was a little kitchen, one big bedroom/TV area and a separate bathroom. That was it. It was a real old house that had been busted up to rent some of it out for a previous owner. I had my own entrance through like the main foyer on the old house.

 

[Zoe]

Duplexes are zoned differently where I work. Duplexes are zoned commerical (higher real property taxes) and ADUs are zoned residential.

Call your HUD office in the morning and explain the situation. They will tell you. Let the lender know.

Sorry. Call Tuesday. President's day tomorrow.

 

[Terrel L. Shields]

Sounds more like an SFR with a mother-in-law quarters to me.

aka ADU.