Condo with a permitted ADU

[alebrewer]

There are a couple around here, new and newer construction. The units include their postage sized yards. A shared walkway is the only common area. I think there is something about joint maintenance of the walkway and exterior, but am not sure. I only did the construction appraisals on them and don't know the legal ins and outs of the conveyances. No parking in the 'project'. And they are really small projects, like up to 4 units.

But one integral part of condo ownership is that the lot is held in common - even if there are no other common elements. That has to be held by the HOA, as the owners hold ownership of the unit they are in plus an indivisible interest in the lot. If the lot isn't held in common, it's not a condo - it's a townhouse, duplex, or 4-unit, right?

 

[alebrewer]

Well..... as usual, we did not get the entire story.

There are site-owned condominium ownerships such as the op is describing here in Cali. Two townhomes, one common driveway, lot is split and owned by each unit. Maybe that's the situation that the op has.

Why the planning department of Glendale allowed the adu, mother-in-law's quarters, whatever it is, and how it conforms to zoning.....is baffling. There will be no comps. Not 10 miles out, not 10 years back. The OP is going to have to use SFR's with adu's....which is going to put him knee deep in s*it.

On top of all that, it's probably an AMC gig.

Right on - I'm familiar with site condos - we have a few in the Austin area. There is still common area including the space between the units, the roads, etc. In your case, the driveway you said was/is common. If there are ANY common areas, there would have to be an HOA to house the common areas, right?

Seems to me that - given your scenario where the lots are split (which, I guess technically would make it a site condo complex), when the HOA is dissolved, the units would become townhomes and they would have to have a road maintenance agreement.

But to your point - I agree. I think we're missing some info...

 

[Charles West]

It would be nice if the op uploaded a few pics and a copy of the assessor's plat map. I can't see how this could been accomplished with building department signoffs without a new lot split.

 

[Sadie]

But one integral part of condo ownership is that the lot is held in common - even if there are no other common elements. That has to be held by the HOA, as the owners hold ownership of the unit they are in plus an indivisible interest in the lot. If the lot isn't held in common, it's not a condo - it's a townhouse, duplex, or 4-unit, right?

Nope, condo ownership. I had a long chat with the builder/developer. I think at sometime he came up with CCRs when it sold, but no formal HOA that I know of. The reasoning behing this was it was much cheaper to develop infill lots as small little condo projects than as individual units. And I think you could maybe cram an extra unit on the site? So it looks like a string of maybe 3-4 attached homes but they are condos. Again, I just did the construction appraisals for them, so am not sure what actually happened when they were placed on the market. With Portland's middle housing these are becoming more and more common.

 

[alebrewer]

Nope, condo ownership. I had a long chat with the builder/developer. I think at sometime he came up with CCRs when it sold, but no formal HOA that I know of. The reasoning behing this was it was much cheaper to develop infill lots as small little condo projects than as individual units. And I think you could maybe cram an extra unit on the site? So it looks like a string of maybe 3-4 attached homes but they are condos. Again, I just did the construction appraisals for them, so am not sure what actually happened when they were placed on the market. With Portland's middle housing these are becoming more and more common.

So there are no common elements then, right?

 

[Sadie]

So there are no common elements then, right?

Per the builder, just the walkway to the units. They are usually placed long ways on the lot. I think the walkway is what prompted him to cobble together some kind of CCRs (after I had completed my report). Last I checked they had all sold. Advertised Hoa fee was $10 per month which I think was a placeholder. I have seen several similar projects like this go up.

 

[Tom D]

Ok, i give in a condo with an adu. No similar condo adu. How about a pud adu. You only need 1 adu comp. If you can figure out adu value from any sale as the adjustment, then just explain how you got the contributing value. You can also capitalize the adu rental income for a dollar amount.

This isn't worth any chalenge to your brain.
Don't come back here crying about the bruise marks from the lender.

 

[sputnam]

Has anyone else even heard a condo with an ADU?

Unfortunately, yes. It's a new thing in the state. If there truly are no similar sales that are recent and proximate then, you will have to expand the time and distance parameters of your search. You may have to use wildly dissimilar properties to extract the contributory value on a percentage basis. You may have to use a depreciated cost analysis. You may have to pay some appraiser in another town or state to give you some data. Pick the best substitutes you can and don't sweat the guidelines. We don't make comparable sales... we try to find them... and sometimes, there simply aren't any good ones. Always remember.... Your opinion of value isn't required to be right. It's required to be supported.

 

[Sadie]

Just to add to the fun., Washington state is considering legislation to allow an ADU to be sold separately from the main property.

 

[sputnam]

Just to add to the fun., Washington state is considering legislation to allow an ADU to be sold separately from the main property.

In which case, it's no longer an ADU.