Does room have to be on main HVAC to be GLA?

[jonand15]

I've been doing tons of searches trying to find a standard definition of GLA after the appraiser for my refi excluded a room from square footage because he said that FNMA doesn't allow a room to have a separate heating source.

The room in question is a 300 square foot room above the garage that's accessible from the main upstairs hallway through a full-sized door. It has a permanent natural gas wall furnace with a dedicated thermostat. It was recently remodeled and fits in perfectly with the rest of the house. The rest of the home is on a typical forced air natural gas fired system.

I couldn't find any Fannie Mae documentation that says a room must be on the main HVAC to be considered GLA. Any help would be appreciated! If his opinion is right, that's great, but I couldn't find anything definitive and it makes a pretty big difference on the appraised value in my (amateur) opinion.

 

[CANative]

From your description it appears that the appraiser erred.

 

[Michigan CG]

From your description it appears that the appraiser erred.

I agree although he said it nicer than I would have.

 

[CANative]

Hook the OP up with ANSI. I don't know how to find it.

 

[Michigan CG]

Hook the OP up with ANSI. I don't know how to find it.

I have ANSI on my computer but it is too big to attach here. The OP can send me an e-mail through the forum and I will send.

 

[Alpine]

While I can't lay claim to knowledge of all FNMA guidelines/requirements, the idea that a room or portion of a dwelling that is otherwise finished to the same quality as the majority of the dwelling should be excluded based on its separate heat source is unreasonable and inconsistent with professional appraisal practice.

That would mean that I would need to halve the GLA of all the older homes I'm appraising that have recently upgraded to the newer mini-split/ductless heat pump systems. Inevitably, these systems replace decades-old, dated, energy-inefficient heat sources such as electric baseboard units, electric wall units (the scary old hot-plate-looking ones with the ceramic and coils), and electric ceiling cable heating. People typically install the ductless heat pumps in the main living areas, and sometimes leave the older heat sources in bedrooms and/or baths as a supplement, since not all floorplans are conducive to the heating/cooling of the DL systems reaching all rooms adequately.

Also, most of us have appraised large, often good-to-excellent quality homes that have more than one central heating system, as in, two furnaces/heat pumps, etc., usually due to their larger GLA or sprawling designs wherein some sections are connected but too distant from another for adequate air flow with one HVAC system. In those cases, and when such homes have separate suite utility, etc. more than one heating system is typically seen as a positive. The idea of omitting/separating the GLA of the various sections of a home based solely on their respective heat sources seems preposterous to me. Assuming this is a room that has no other or functional issues in terms of access, finish quality, legal use, etc., I encourage you to challenge the appraiser's omission from the primary GLA solely based on its heating source.

 

[444nutman]

I appraised a home last week that had 5 AC units. The home was almost 8000 square feet. Based on your description it should have been included.

 

[Mike Kennedy]

I've been doing tons of searches trying to find a standard definition of GLA after the appraiser for my refi excluded a room from square footage because he said that FNMA doesn't allow a room to have a separate heating source.

The room in question is a 300 square foot room above the garage that's accessible from the main upstairs hallway through a full-sized door. It has a permanent natural gas wall furnace with a dedicated thermostat. It was recently remodeled and fits in perfectly with the rest of the house. The rest of the home is on a typical forced air natural gas fired system.

I couldn't find any Fannie Mae documentation that says a room must be on the main HVAC to be considered GLA. Any help would be appreciated! If his opinion is right, that's great, but I couldn't find anything definitive and it makes a pretty big difference on the appraised value in my (amateur) opinion.

Consult your Building Department. Adherence to ANSI is strictly voluntary. Your Municipality may, or may not voluntarily utilize ANSI standards. If it does, your Building Code will stipulate that.

In Lieu of ANSI, your Municipality may utilize the International Building Code. Both the Standards and the I.Bldg. Code describe recommended heating and cooling requirements. Your Municipality made a judgement for your locale expressed in your Building Ordinance/Code. Assuming your Municipality required a Building Permit to install the stove and a Certificate of Occupancy (or Compliance) subsequent to Municipal Inspection on completion, the BP, or CO/CC may likely indicate "seasonal" or "year round" use is permissible. Clarification by your Municipal Building Inspector will answer your question.

Illinois State Building Codes (your local Municipality may use it, or have developed it's own which must comply with the State's)
http://www.reedconstructiondata.com/building-codes/illinois/

 

[CANative]

What the heck is the building department going to do to help the OP with a problem caused by a goofy appraiser?!

 

[Mike Kennedy]

"the BP, or CO/CC may likely indicate "seasonal" or "year round" use is permissible." GLA in OP's state = "year round" occupancy equivalent TO, OR the same heating/insulation/cooling system in the remainder of the heated residence. The Appraiser should have confirmed use and stated his/her conclusion based on Municipal Requirements for GLA.