ADU included in main dwelling

[andrew81]

An ADU can be detached, attached, or created within the main living unit.

 

[Terrel L. Shields]

NO it is not contingent can ADU sold separate from main house !!

Read the definitions and there is a HUD report on HUDUSER.GOV. I know of no ADU which can be sold separately from the house and I have never read any ADU definitions in zoning rules that allows one to be separated from the primary dwelling.

An accessory dwelling unit (ADU) is a legal and regulatory term for a secondary house or apartment that shares the building lot of a larger, primary home. The unit cannot be bought or sold separately, but they are often used to provide additional income through rent or to house a family member.​

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The fact that it’s a secondary housing unit—rather than a given structural form—is what defines an ADU.​

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Seattle defines it this way​

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An accessory dwelling unit (ADU) is a separate living space within a house or on the same property as an existing house. These units are not legal unless they have been established through a permit process. A legally permitted unit in the home is called an attached accessory dwelling unit (AADU). A legally permitted unit on the property (but not within the home) is called a detached accessory dwelling unit (DADU) or backyard cottage. Tiny houses, with foundations, are considered DADUs.​

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[RSW]

H & BU analysis sounds scary for a beginner. Can you give me some hints? Also, I need to contact a borrower and ask that ADU is legal or not right?

That's one of the first things you should do in the appraisal process. You have to determine what you are appraising. Your supervisor should have taught you how to do that.

 

[Sadie]

Read the definitions and there is a HUD report on HUDUSER.GOV. I know of no ADU which can be sold separately from the house and I have never read any ADU definitions in zoning rules that allows one to be separated from the primary dwelling.

An accessory dwelling unit (ADU) is a legal and regulatory term for a secondary house or apartment that shares the building lot of a larger, primary home. The unit cannot be bought or sold separately, but they are often used to provide additional income through rent or to house a family member.​

​

The fact that it’s a secondary housing unit—rather than a given structural form—is what defines an ADU.​

​

Seattle defines it this way​

​

An accessory dwelling unit (ADU) is a separate living space within a house or on the same property as an existing house. These units are not legal unless they have been established through a permit process. A legally permitted unit in the home is called an attached accessory dwelling unit (AADU). A legally permitted unit on the property (but not within the home) is called a detached accessory dwelling unit (DADU) or backyard cottage. Tiny houses, with foundations, are considered DADUs.​

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I think you misread the statement, I did too. J Grant was saying that if it can't be sold separately its an ADU. If it can be sold separately, then its an ADU or a second unit and you need to figure out how the client wants to deal with it.

 

[spittman]

An ADU can be detached, attached, or created within the main living unit.

Can also be "unpermitted". I think a lot of appraisers are confused by the term "unpermitted". An ADU, addition or conversion can be unpermitted meaning, there were no permits pulled, BUT the space is still "permissable" (allowed) under current zoning code. Problem is sometimes it cannot be determined if the additional living space was added/modified under the current local zoning ordinances or if it was added before the code was implemented in which case it would be grandfathered. I have inspected dozens, maybe even hundreds of properties with additional living spaces that did not have permits. Many times the county assessor included the space in the GLA even though there are no permits on file so I think it is safe to assume that the ADU was "permissable" even though there were no actual permits involved. I like to use HUD's definition of ADU -

Identifying an Accessory Dwelling Unit
(1) Definition
An Accessory Dwelling Unit (ADU) refers to a habitable living unit added to, created within, or detached from a primary one-unit Single Family dwelling, which together constitute a single interest in real estate. It is a separate additional living unit, including kitchen, sleeping, and bathroom facilities.
An ADU is usually subordinate in size, location and appearance to the primary Dwelling Unit and may or may not have separately metered utilities or separate means of ingress or egress. The Appraiser must not include the living area of the ADU in the calculation of the Gross Living Area (GLA) of the primary dwelling.

 

[Sadie]

I'm currently working as a trainee & always thought ADU is a detached unit, but today I figured that I was wrong after I researched forums for few hours.

Subject property : 3 stories. Spanish style over 3 millions. Total 3533 SF. lower level(493 SF) is not a basement(above grade) but doesn't have access from inside. Recently remodeled and equipped with small but full kitchen, office, living and bedroom.

I should've noticed this could be a problem when there's no access from inside the dwelling. However, due to lack of my experience & knowledge, I didn't even think that this area could be considered as ADU.

Conditions that I received from a reviewer

(1) Please confirm if the lower level functions as an ADU.
(2) According to the sketch, this area meets the functions of sleeping, sanitation, cooking, and living. If this area is an ADU, the appraiser to confirm if it is legally permissible.
(3) Please provide a SOLD Comp with similar ADU to support value and marketability. Thank you.

If I respond that lower level is ADU, then I think I have to make a whole new report (taking new 6 comp photos, value, etc.) Also, there are no comps like subject in that market area. 1 comp has an extra kitchen in a guest house, but it's a detached guest house, so I don't think I can use it to support value & marketability as the reviewer requested.

Please advise the best way to respond regarding reviewer's condition. Or do I have to work all over again & make a new report? (Oh no...)

Ok, it its legal find some comps (even 1) that has an ADU, bonus points if its similar. Your comp with a guest house may well be a good option, if it can function as a dwelling unit. Explain the similarities. A rewording of the addendum may suffice. Be sure to check the correct box on the Improvements section indicating there is an ADU.

 

[J Grant]

I think you misread the statement, I did too. J Grant was saying that if it can't be sold separately its an ADU. If it can be sold separately, then its an ADU or a second unit and you need to figure out how the client wants to deal with it.

I was responding to Terrell, sorry I did because it opened a can of worms, normally an ADU can not be sold separately , in the event it can that is a whole other appraisal problem.

 

[spittman]

I was responding to Terrell, sorry I did because it opened a can of worms, normally an ADU can not be sold separately , in the event it can that is a whole other appraisal problem.

Yeah sorry Terrell. I've never, never, never seen an ADU that can be sold separately from a deeded property. Maybe if it was one of those portable little homes that someone could haul off, but no. Not happening in my market.

 

[Sadie]

Yeah sorry Terrell. I've never, never, never seen an ADU that can be sold separately from a deeded property. Maybe if it was one of those portable little homes that someone could haul off, but no. Not happening in my market.

Yeah, but those tend to be personal property. I see those things sometimes.

 

[spittman]

Yeah, but those tend to be personal property. I see those things sometimes.

I can only think of one situation here in my market where ADU's were not allowed and code compliance was enforced. It was a church that owned a large parcel of land and was building several tiny homes (more than 5 units) for the homeless. City came in and said "Hey you can't do that, stop, get proper permits, or you will be fined." I thought churches were exempt from things like this because they were doing a good deed for destitute people, but apparently not. City has really been cracking down on the homeless situation and driven them out of homeless camps, but where are these people suppose to go if the shelters are full and the city says no to temporary tiny homes new builds???