Are unauthorized suites considered 'non-conforming' if zoning permits the extra suite?

[Trayn33]

The subject is a single detached home with a self-contained suite in the basement. Zoning does permit a secondary basement suite. However, the suite is unauthorized and would likely require some work to comply with code.
Is the existing use considered 'conforming' or 'non-conforming' ?

Context: Unauthorized suites are very common in the subject market area, and the city generally ignores unregistered retrofits because they provide more dwellings during a severe housing affordability crisis.

 

[Dublin ohio]

The subject is a single detached home with a self-contained suite in the basement. Zoning does permit a secondary basement suite. However, the suite is unauthorized and would likely require some work to comply with code.
Is the existing use considered 'conforming' or 'non-conforming' ?

Context: Unauthorized suites are very common in the subject market area, and the city generally ignores unregistered retrofits because they provide more dwellings during a severe housing affordability crisis.

Can't be conforming. Callin it "non conforming" would be misleading imo. Around here it would be an illegal use since zoning does not allow the use.

 

[George Hatch]

The subject is a single detached home with a self-contained suite in the basement. Zoning does permit a secondary basement suite. However, the suite is unauthorized and would likely require some work to comply with code.
Is the existing use considered 'conforming' or 'non-conforming' ?

Context: Unauthorized suites are very common in the subject market area, and the city generally ignores unregistered retrofits because they provide more dwellings during a severe housing affordability crisis.

I'm going to stick my neck out and offer the minority report

The concepts of market value and highest/best use are oriented to market reactions to these various combinations of attributes. Not to what lenders will accept or what the letter of the law technically allows. If the expectations of the market participants in a situation like this is that they local jurisdiction does not enforce these particular regs, and if this feature in its current condition/status commonly affects the value of the whole then saying so in an appraisal report amounts to full disclosure. If this is how the market participants are acting then it is what it is. With that said, how the lenders act on that information is on the lenders, so if the property doesn't qualify for a certain program that's an underwriting issue.

The value conclusion on the bottom line of the report isn't always the most important piece of information in report.

The way I might handle this in a form report is to do a separate line item and refer to it as an unpermitted addition and then seek out at least a couple of comparables with the same unpermitted addition feature and see how they compare to the other comparables.

 

[CGinMN]

Sounds to me like the use is compliant with zoning, but the ADU is unpermitted. Comment on the quality and appearance of the work and its impact, if any, on the market value. Wrangle up a couple similar comps with unpermitted ADUs.

 

[Tom D]

Wha, sounds like a part finished basement with a kitchen. around here, big urban, i would have no work if i was so an*l about what permits were gotten for. Even on my own house.

Now if it has separate utils i might think a rentable unit. but fannie permits work done without permits. go kill the loan, your client will thank you.

 

[Dublin ohio]

Sounds to me like the use is compliant with zoning, but the ADU is unpermitted

Actually it is illegal.

The subject is a single detached home with a self-contained suite in the basement. Zoning does permit a secondary basement suite.

 

[Carnivore]

My question is about dates. So was this basement suite completed prior to any zoning changes? This happens in my city occasionally.

annexation. Was this basement suite completed before being annexed?

Was there a Variance approved by governing outhority.

 

[Terrel L. Shields]

Actually it is illegal.

I will let a court decide that. I would simply say that it does not conform to the city code.

 

[sputnam]

The subject is a single detached home with a self-contained suite in the basement. Zoning does permit a secondary basement suite. However, the suite is unauthorized and would likely require some work to comply with code.
Is the existing use considered 'conforming' or 'non-conforming' ?

Context: Unauthorized suites are very common in the subject market area, and the city generally ignores unregistered retrofits because they provide more dwellings during a severe housing affordability crisis.

I'll assume you mean 'Unpermitted'. That is, the property owner who created that suite didn't bother with building permits or city/county inspections. Conforming or non conforming just refers to whether or not the improvements fall with in the zoning regulations in place at the time you inspect the property.

 

[Surf Cat]

Context: Unauthorized suites are very common in the subject market area, and the city generally ignores unregistered retrofits because they provide more dwellings during a severe housing affordability crisis.

Excellent..... sounds as if you have plenty of comps to gauge the market reaction of a non-permitted basement conversion.

What do you mean by a suite? I equate a suite with a hotel. Do you mean the basement has been converted to a studio apartment? Like an adu? If so, and it has a kitchenette with gas appliances, if they're not vented properly, it could mean a health and safety issue which has to be called out. That goes for the wall heater too... they have to be subject to removal ( if not installed with proper ventilation). Once again, that's if the appliances are natural gas.

The dwelling's non permitted basement doesn't make the property non-conforming if the zoning allows for single family residences. Let's say the zoning required two car covered parking. If the subject property had no garage, then it would be legal nonconforming. Or, if the zoning classification changed to commercial. It's use would be grandfathered in but it would be legal nonconforming.