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FHA Guides for 2-4 Family

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Manhattan value

Thread Starter
Freshman Member
Joined
Mar 8, 2008
Professional Status
Certified Residential Appraiser
State
New York
The subject is a "legal" two-family home. The currrent owners removed the kitchen from the second floor unit an converted the two units to one.

They also converted below-grade space (basement) to a studio apartment.

I know FNMA does not allow the second unit to be below grade. I can't find the answer on HUD sites or guidelines.

Help anyone??
 

JoeGermade

Junior Member
Joined
Oct 4, 2004
Professional Status
Certified Residential Appraiser
State
New York
The first thing I would do is check with the department of buildings. Your B* 2 family is like that because of the department of finance. Thats where geo, comps inc, and property shark get their data.

The good ole C of O is usually on the department of buildings web site. If not you can read violations and work permits and try to figure it out. The department of finance will tax an illegal conversion as something different no matter what the legal use is.


Otherwise I think that falls into highest and best use.
 

Manhattan value

Thread Starter
Freshman Member
Joined
Mar 8, 2008
Professional Status
Certified Residential Appraiser
State
New York
Because of falling values in the area for 2-4 units, SFR might actually be the "HABU."

But specifically I need to know what FHA allows.
 

JoeGermade

Junior Member
Joined
Oct 4, 2004
Professional Status
Certified Residential Appraiser
State
New York
Accessory Unit / Accessory Dwelling Unit
The accessory unit is defined as a habitable living unit added to, created within, or detached from a
single-family dwelling that provides the basic requirements for living, sleeping, eating, cooking, and
sanitation.
Accessory Dwelling Units (ADUs) are commonly understood to be a separate additional living unit,
including separate kitchen, sleeping, and bathroom facilities, attached or detached from the primary
residential unit, on a single-family lot. ADUs are usually subordinate in size, location, and appearance to
the primary unit and may or may not have separate means of ingress or egress.
Attached units, contained within a single-family home, known variously as "mother-in-law apartments,"
are the most common type of accessory dwelling unit. Accessory units usually involve the renovation of
a garage, basement, or small addition to a single-family home.
FHA Criteria
“Accessory dwelling unit" means a subordinate dwelling unit may or may not be incorporated within, or
detached from a single-family structure. Accessory units may not be subdivided or otherwise segregated
in ownership from the primary residence structure.
Some accessory units may predate the adoption of local zoning ordinance and may therefore be
classified as legal nonconforming units.
Utility Service Requirements
An accessory apartment must be connected to the utilities (except telephone, television and cable) of the
dwelling unit and may not have separate services.
 
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