ADU to be included in GLA

[gregford]

I have revision request.
Client Requests.
1. Per FHA requirements, the Living area associated with the accessory dwelling unit should not be included in the subject's GLA calculation. (See 4000.1 Accessory Dwelling units)
***Also note, when living area is not contiguous with the primary home, the non-contiguous area is not counted as GLA.
Please correct the report.
2. Have you valued the Accessory unit twice on the grid? Once as GLA at the GLA line then again as a separate line item "Inlawqrt"? Please clarify.

The (ranch style home) house with the ADU is under the same roof line but separated by an attached 2 car garage. Both main and ADU(bathroom-kitchenette-living room studio) have their own entrances and access to each other through the garage. Both are in the same quality of GLA as the main. Public records notes total square footage of GLA including ADU sqft (2,441 sqft).
In the market grid, I have both sqft in GLA at (2,431 sqft) and adjusted accordingly. inlawqrt is on another line with adjustments for the amenity of a separate private unit.

Why would I not include both square footages together? I don't see anything in 4000.1 ADU stating to not include the square footage of the ADU. Any guidance please?

 

[andrew81]

FHA 4000.1

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.
(2) Required Analysis and Reporting
As part of the highest and best use analysis, the Appraiser must make the
determination to classify the Property as a Single Family dwelling with an ADU,
or a two-family dwelling. The conclusion of the highest and best use analysis will
then determine the classification of the Property and the analysis and reporting
required.
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.
The Appraiser must notify the Mortgagee of the deficiency in MPR or MPS if
more than one ADU is located on the subject Property.

 

[Sadie]

I usually include it as a separate line item adjustment.

 

[Terrel L. Shields]

 

[RSW]

The ADU should NOT be counted in the GLA. Did you do a H&BU analysis to determine if it should be an ADU or a duplex?

 

[Alsie35]

Key line in your description is "separated by a garage" followed by "separate entrances". You should deduct the ADU's GLA from the subject GLA total and account for the ADU on a separate line towards the bottom of the grid.

 

[Tom D]

it is difficult without being connected to the house directly. separate line. it's sorta like a garage with a finished loft, would you count that as GLA.

 

[glenn walker]

I have revision request.
Client Requests.
1. Per FHA requirements, the Living area associated with the accessory dwelling unit should not be included in the subject's GLA calculation. (See 4000.1 Accessory Dwelling units)
***Also note, when living area is not contiguous with the primary home, the non-contiguous area is not counted as GLA.
Please correct the report.
2. Have you valued the Accessory unit twice on the grid? Once as GLA at the GLA line then again as a separate line item "Inlawqrt"? Please clarify.

The (ranch style home) house with the ADU is under the same roof line but separated by an attached 2 car garage. Both main and ADU(bathroom-kitchenette-living room studio) have their own entrances and access to each other through the garage. Both are in the same quality of GLA as the main. Public records notes total square footage of GLA including ADU sqft (2,441 sqft).
In the market grid, I have both sqft in GLA at (2,431 sqft) and adjusted accordingly. inlawqrt is on another line with adjustments for the amenity of a separate private unit.

Why would I not include both square footages together? I don't see anything in 4000.1 ADU stating to not include the square footage of the ADU. Any guidance please?

Because its really a detached ADU and not included in the main homes GLA

 

[Tru Red]

In the market grid, I have both sqft in GLA at (2,431 sqft) and adjusted accordingly. inlawqrt is on another line with adjustments for the amenity of a separate private unit.

NO. Based on what you wrote you made (2) adjustments for the same square footage.

NO. NO. NO.

Or....am I reading this wrong?

Basically you have living space on both sides of a garage. Each has it's own exterior entry and/or you can walk through the garage into either side. That....is GLA or living space. I have appraised many homes where there is living space on each side of a garage. People built these for their parents or teenagers or many other reasons. You could call it an ADU but really........no. It's just a part of the living area on another wing. Especially since the public records show it all as GLA.

I did a SFR similar to this one. The county shows it as a SFR with 2,948 sf of GLA.

 

[spittman]