Adult Foster Care Home

[ProspectMI]

I recently received an order from a new local client to appraise an adult foster care home. It's located in Detroit, is zoned residential but is also state regulated for the care of the occupants. The house is fairly typical when it comes to rooms and baths, nothing out of the ordinary. The client didn't give me any specific instructions for this order either. Normally I wouldn't have accepted this but being a new client, I needed to oblige. With that, my question is has anyone dealt with this type of property before and what types of statements might I want to add? Also, can this just go on a 1004?

 

[JTip]

to appraise an adult foster care home

Out of your cert scope. Pass. Reminds me of a B&B revocation situation(s). Don't be greedy, pass.

 

[J Grant]

Normally I wouldn't have accepted this but being a new client, I needed to oblige

Has nothing to do with the client, it's about your competence for the assignment. There have been questions on board in past about res converted ,mixed use/zoning properties that may be either commercial assignments or at least complex. Since you mention this is a new client , do you think it's a coincidence that this first assignment is odd? It has happened when a questionable assignment is rejected from its regular panel, some clients will shift it to a new appraiser eager to impress them by completing an order they would otherwise reject. A client looking to add an appraiser in a legit manner would tend to give a new appraiser for first assignment a regular order.

 

[Terrel L. Shields]

It is a commercial assignment by interpretation of most courts and most boards ... my understanding. The B & B problem. Just because it is a tax dodge does not make it mere residential property. Get a CG to sign off with you and let them guide you.

 

[Michigan CG]

I imagine you have no idea what you are getting into. I am CG and won't do them.

 

[Meandering]

As stated, this is a specialty commercial assignment.
Other SFR are not comps.

But here is something to remember in the future.
Anytime you have people in a building that are eating food they are paying for, the kitchen is a "commercial" kitchen, and it does not matter if it has Sears Appliances. It has to meet ONGOING specific health codes, which you don't have a clue about, and therefore don't have the competency to value.

Not picking on you, but we get this question a few times a year, so if appraisers just think about the kitchen as being commercial, they should be better able to understand it is not an SFR even if only one person is living in it.

.

 

[Gobears81]

Not a whole lot to add on what others haven't already, but in Illinois, there was a court ruling that completely changed the residential landscape for individuals with developmental disabilities. There is typically certificate of need value associated with these properties and the aforementioned court ruling completely changed the viability of some of these properties, hence wiping out there C.O.N. value in many cases. I don't know Michigan, but don't doubt that there are some related implications. Personally, I'd rather try to be more accommodating to established clients, not new ones. So not to sound like a broken record from other posters here, but I would also suggest passing on this. Losing a single new client (ie business that you already didn't have) is worth it.

 

[Mike Garrett RAA]

IN MY MARKET a home owner can do home care and still be considered a residential property and not commercial. You could do the appraisal but you need to be sure the use is legal and permitted under the present zoning and that it (usage) is acceptable to the client.

 

[hastalavista]

IN MY MARKET a home owner can do home care and still be considered a residential property and not commercial.

Mine as well. Have done a number of these. H&BU is residential.
Having said all of that, your local laws/regs may be different. What you should be able to do is to support your H&BU analysis with more than the check-box, summarize the zoning requirements and any specific overlay for the adult day care use, and then, based on all of that, you'll know if it is residential or not.
If you cannot do "all of that" pass on the assignment. The last thing I advise anyone to do is to accept an assignment with a new feature they've never dealt with before from a new client they have no history with.

Good luck!

 

[Meandering]

may I ask why H&B is residential, and not a present use that produces an income stream?