ANSI Z765-2021 - Question about ADU

[Dublin ohio]

So you're saying put the total ADU squarefootage (including basement) on a separate line, correct? What if I need to use 2 comps which don't have ADU's? This is going to be one ugly grid.

List the sf or just list it as an adu and explain in the commentary. Or you could put each on a separate line. No matter which way you do it. It is going to be an ugly looking grid. Just explain, explain, explain. Keep your comments to the point and in an easily followed format

 

[sputnam]

If you are doing an appraisal for Fannie/Freddie, you are supposed to report GLA that has been measured and calculated based on ANSI standards. Non contiguous SF is not included in GLA. If the space is contiguous... that is, if you can walk directly from one portion to the next... it's not an ADU, imo. It's an in-law/guest suite.

 

[Fernando]

Many appraisers are confused how to handle ADU. Now they have to decide how to handle this using ANSI.
Fannie has made this ANSI more confusing to many appraisers. Some parts of subject ANSI, others not. Very confusing.
So next is how do you measure nonpermitted additions? Do you use ANSI? In the end, it doesn't matter. Appraisers appraised even when ANSI wasn't the standard.

 

[Sandra Koutsopoulos]

IMO the entire basement sf should go in basement, as that is not dwelling space, but is part of the overall structure and could find value in the marketplace for storage or whatever, and you are representing what you actually saw there. If the ADU space has a full kitchen, then I would break the ADU out in a separate line. Ask yourself, does the entire above ground living space show up as GLA on the legal? Can the ADU portion be directly accessed through a doorway from the primary living space or does it require one to enter only from outside? Is it rented?
IMO, if it can be reached from inside (connecting doorway) the main living space, one could call it a master suite with bathroom, wetbar and fridge for example; that space could easily be convertible back to full use by occupant of main part of the house without structural changes. And if another family/person is living there, maybe it is a roommate?????? That might solve your comps problem as long as you can find a SFR of similar GLA. But... if borrower needs the rental income, I'd definitely break the ADU out separately, and if there is no direct access from the main house, for SURE it is an ADU without question, and not part of the SFR. ANSI measurements for all, and above grade only living space valued as ADU GLA. Basement typically valued at significantly lower rate per sf.

 

[Tom4value]

If there is an above grade ADU which is attached to the GLA of the main structure, should the ADU be included in the GLA? Does ANSI 765-2021 even apply to ADU's?

ANSI makes no mention anywhere of “gross living area”. ANSI only pertains to “living area” and “non-living area”.

 

[Dublin ohio]

ANSI makes no mention anywhere of “gross living area”. ANSI only pertains to “living area” and “non-living area”.

I do believe ANSI uses finished area and unfinished area.

 

[Fernando]

Even before Fannie forced us to use ANSI, I would not include ADU in GLA. I put it on separate line regardless being above or below ground.
ANSI confusing people. Fannie should make a declaration in how to treat ADUs to appraisers not familiar in dealing with ADUs.

 

[sputnam]

I do believe ANSI uses finished area and unfinished area.

That's correct. However, Fannie/Freddie still requires you to report GLA. What has happened is that the GSEs have essentially moved from a sloppy-ish definition of GLA to one that is less sloppy by saying that GLA is to be measured and calculated using ANSI standards.

 

[djd09]

the market dictates what is considered market accepted GLA...

 

[Fernando]

That's correct. However, Fannie/Freddie still requires you to report GLA. What has happened is that the GSEs have essentially moved from a sloppy-ish definition of GLA to one that is less sloppy by saying that GLA is to be measured and calculated using ANSI standards.

Before ANSI, it wasn't sloppy. We did not include ADUs in GLA. It was a separate line regardless above or below grade.
If illegal ADUs are not included in GLA then why measure in ANSI? They are not part of GLA. Just like decks, we don't measure in ANSI. It's confusing for many appraisers.