Fannie Mae guidelines and gross living area access

[Tim Hicks (Texas)]

So, if ANSI are just guidelines and FNMA doesn't specifically indicate access, then I guess it is up to us to determine how the sq ft best fits into the market in our area, given that it is a permitted use.

It definitely effects the value as to whether we include it in GLA or as just a line item adjustment because with GLA we would be comparing it to similar GLA properties and the value would be higher than what we can make a separate line item adjustment at.

Frankly, it is an accessory unit. Why do you think there is a accessory unit box on the URAR? It is not accessible through the main living area. You have to go outside to access it. If accessory units are common in the area as you state, then compare it to other homes with accessory units. It does not matter how the county counts it, they want tax dollars. Accessory units should be separated and compared to other accessory units or adjusted for contributory value based on other accessory unit sales. Don't take the easy route. This type of layout does not have the same flow or utility of a home with the same living area area with all interior access. Apples to apples, not apples to oranges. The easiest way to do things it not always the correct way.

 

[hastalavista]

Frankly, it is an accessory unit.

Is it an accessory unit it it doesn't have a kitchen?
Or is it a seperate, finished area that may (or may not) have similar contributory value as GLA?
(did I miss the kitchen part?)

 

[Tim Hicks (Texas)]

Is it an accessory unit it it doesn't have a kitchen?
Or is it a seperate, finished area that may (or may not) have similar contributory value as GLA?
(did I miss the kitchen part?)

Or maybe, I missed that part. Does the term "accessory unit" have to have a kitchen? Do casitas have a kitchen? Any area that is not directly accessible to the main living area is not equal area due to functional utility.

 

[hastalavista]

Or maybe, I missed that part. Does the term "accessory unit" have to have a kitchen? Do casitas have a kitchen? Any area that is not directly accessible to the main living area is not equal area due to functional utility.

I think that is a good question.
I know when I've researched in zoning and planning regulations the question, as a rule, the jurisdictions consider an accessory or secondary unit, one that can accommodate overnight occupancy, sanitary and food preparation needs.
I've always considered the sanitary and food preparation needs to mean a bathroom and kitchen (as do most of the jurisdictions where I work).
Sometimes, a "kitchen" is defined in detail (4-foot plus work surface area + sink and cooking area) and sometimes it isn't.
In San Francisco, they consider a "kitchen" one that has a stove: take out the stove, and it is no longer a kitchen (the hood can apparently stay).

Pool houses (in the codes I've researched) are usually defined as not having a kitchen and not designed for overnight occupancy (or, sometimes its just "occupancy"). The typically have a bathroom and something that may come close to a kitchen (like an extensive wet-bar set-up).

Without a definition or requirement to the contrary, I wouldn't categorize a detached, finished area like the OP's description as an accessory unit if it didn't have a kitchen and wasn't designed for stand-alone occupancy.
But that's me! :new_smile-l:
Whatever I do, I'm going to explain what exists and how I categorize it.
If another called it an accessory unit; describing what exists and why it is categorized as such, that would seem reasonable to me as well.

 

[suzy70]

the area doesn't have a kitchen, just a large open room used as an office with a bathroom.

 

[suzy70]

I guess it all comes down to what the city permit states and what similar comparables are. We can try to extract a functional utility adjustment for the exterior access if there is data.

 

[Michigan CG]

I guess it all comes down to what the city permit states and what similar comparables are. We can try to extract a functional utility adjustment for the exterior access if there is data.

It is NOT GLA.

 

[Lee Lansford]

...

...and the value would be higher than what we can make a separate line item adjustment at.

What?

You will want to re-think your approach to this situation if it is based upon "what we can make a separate line item adjustment at".

I think that you are suffering from a too common ailment: "Form-itis" complicated by "Radical-Adherence-To-Guideline-itis".

 

[Lee Lansford]

...

I guess the best we can do is go by market reaction to the additional square footage and value it accordingly.
...

That is correct.

What is not correct is making something GLA when it is not GLA for our perceived convenience in communicating the appraisal.

The finished area above the garage: It is not GLA and I don't know of an appraiser whose opinion I respect who would represent it as GLA.

 

[suzy70]

We concur, it is not GLA and will be appraising the property accordingly with a separate adjustment for the additional sqft. Thank you for all of the valued input.