Basement Square Footage Question

[Vermonter]

Exposed block painted could be considered finished. Exposed plumbing definitely not. This is one of those issues the forms don't make things easy. I would probably call it unfinished, comment on it and use the blank fields at the bottom if an adjustment can be extracted. In my market I probably could, but basements are not as common in SC.

 

[Terrel L. Shields]

I did not include the finished basement as hla but realtor thinks we should.

Well, it is heated living area, but it is not GLA. It is "other". Partially finished basement. Whatever. It probably has a different value per SF from the GLA.

 

[Tom D]

Tell me why this isn't an adu. Bedroom, kitchen, bath, windows & exit thru the rear basement door to the outside. Let me know how the underwriter accepts your 'it is not an adu' comment.

An ADU, commonly referred to as an accessory apartment or in-law suite, is a smaller additional living space on the same lot as a single-family home. It must include space for living, sleeping, cooking and bathrooms independent of the primary residence. While the ADU may or may not include access to the primary residence, it must be accessible without going through the primary residence and there must be some expectation of privacy from the home.

• Within a primary residence, such as a basement apartment

 

[Surf Cat]

Tell me why this isn't an adu.

I'll take a stab at your query Tom.....first, the op hasn't come back and responded. Thus, we have no further insight.

We don't know if the op's local zoning even allows ADUs or a JADU which I believe this would be if legal. We don't know if the ceiling height is the minimum standard, if ventilation is up to code (no window in bathroom). How about venting for commodes, sinks Etc.?

Lastly, and the big one for me, is the funky layout where the access to the exterior is from the unfinished part of the basement, away from the finished part. That means, no egress in case of a fire. Also, you wouldn't have that privacy that adu's require because the entrance from the main dwelling upstairs wouldn't be locked because they'd want to get to the unfinished portion of the basement to store their stuff.

Thus, I'd go with partially finished basement.

 

[Fernando]

Not all basements and ADUs are similar. Appraisers need to know the quality and condition of subject and make adjustments compared to comps.
Which brings us to finding out the characteristics of comps' basement and ADU. There's error in such a process so don't expect true accuracy.

 

[Terrel L. Shields]

Tell me why this isn't an adu

ADU, apartment, office, man cave, whatever you call it, the property has only one value. Renaming a hot dog a frank doesn't make any difference in the value.

Not all basements and ADUs are similar.

Yep.

 

[Tom D]

ADU, apartment, office, man cave, whatever you call it, the property has only one value. Renaming a hot dog a frank doesn't make any difference in the value.

The question wasn't value, it's the fannie mae functional use, as defined by them. You seem confused with your word salad there. The original question was GLA, not room definition. I threw in adu, the new fannie craze, as to what the sketch was telling me either way.

 

[Terrel L. Shields]

the new fannie craze, as to what the sketch was telling me either w

Question. If a use is not recognized by the local government but meets FNMA regulations from the selling guide, then is it a legal ADU?

 

[Tom D]

Question. If a use is not recognized by the local government but meets FNMA regulations from the selling guide, then is it a legal ADU?

ADU is extremely rare in this area. To me it is a finished basement however it is used by the family. A rented kitchen & bath fin basement section to a non relative is another issue for the underwriter and l&i. But, to answer your specific question? Legal adu has a different meaning for fannie lending. However, the owner can have a potential issue with l&i, but fannie doesn't.
If the owner & fannie don't care, then semantics don't care. The appraisal is done for fannie, not l&i. As states below, you state it is illegal, but mortgagable by fannie standards. But, still a adu, the factor for lending, not it's legality.

If it is determined that the property contains an ADU that is not allowed under zoning (where an ADU is not allowed under any circumstance), the property is eligible under the following additional conditions:

• The lender confirms that the existence will not jeopardize any future property insurance claim that might need to be filed for the property.
• The illegal use conforms to the subject neighborhood and to the market.
• The property is appraised based upon its current use.
• The appraisal report states that the improvements represent a use that does not comply with zoning (“illegal” use).
• The appraisal report demonstrates that the improvements are typical for the market through an analysis of at least two comparable sales with the same non-compliant zoning use. Aged settled sale(s) with the same non-compliant zoning use are acceptable if recent sales are not available. At a minimum, the appraisal report must include a total of three settled sales.

 

[BRCJR]

Tell me why this isn't an adu. Bedroom, kitchen, bath, windows & exit thru the rear basement door to the outside. Let me know how the underwriter accepts your 'it is not an adu' comment.

An ADU, commonly referred to as an accessory apartment or in-law suite, is a smaller additional living space on the same lot as a single-family home. It must include space for living, sleeping, cooking and bathrooms independent of the primary residence. While the ADU may or may not include access to the primary residence, it must be accessible without going through the primary residence and there must be some expectation of privacy from the home.

• Within a primary residence, such as a basement apartment

Does this come into play? " No vent in bedroom or bathroom."