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IMPACT ON HBU OF A N.P.'d 2ND UNIT

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ZZGAMAZZ

Thread Starter
Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
The Subject Is A Property That Is Zoned For SFR (located In Long Beach, Ca) Includes A Detached Garage Converted Without Building Permits Into A Full 2nd Unit With Bed/living/bath/ Kit.

Zoning Does Not Permit A 2nd Unit.

The Permit-vs-nonpermit Conundrum Notwithstanding: Do The Current Improvements Affect The Legally Permissible Component Of HBU?

I Realize That The Remaining 3 Tests Still Apply And That HBU Might Be As Improved, Legality Of The 2nd Unit Notwithstanding.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
ZZ-

Not sure where this line if inquiry may be taking you.

HBU sounds like residential, one-unit.

The non-permitted/illegal garage conversion does not change the HBU of the subject (theoretically or as-improved). It does affect the zoning compliance of the subject.
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
HBU sounds like residential, one-unit.

The non-permitted/illegal garage conversion does not change the HBU of the subject (theoretically or as-improved). It does affect the zoning compliance of the subject.
The HBU as-if-vacant is one unit, and the "illegal" garage does not affect the HBU as-if-vacant. I have a feeling he is asking about as-improved HBU.

Through the other "tests," you will have to assess the risk of non-conformity in terms of the chances of fine or forced teardown, as preliminary steps to quantifying the affect non-conformity has on marketability and value.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
"Illegal is as Illegal Does"

In markets where building & zoning Ordinances exist, it also impacts marketability, transferrability, insurability, and may, in all markets, pose health & safety hazards. Confirm and report the "Accurate Description of the Subject" with Valuation Subject to curing violation via C.O. or Removal.
 
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Brad Ellis

Senior Member
Joined
Feb 7, 2006
Professional Status
Certified Residential Appraiser
State
California
ZZ,

Just a thought- CA may have some sort of law regarding illegal second units in high density areas that may override the local municipality's statutes.

Do see if you can find that.

I have not seen it but, strangely, it was a building guy from Long Beach who told me about it a few years ago while we were speaking about an historic property in that town.

Brad
 

CCAAMO

Senior Member
Joined
Sep 17, 2007
Professional Status
Certified General Appraiser
State
California
The Subject Is A Property That Is Zoned For SFR (located In Long Beach, Ca) Includes A Detached Garage Converted Without Building Permits Into A Full 2nd Unit With Bed/living/bath/ Kit.

Zoning Does Not Permit A 2nd Unit.

The Permit-vs-nonpermit Conundrum Notwithstanding: Do The Current Improvements Affect The Legally Permissible Component Of HBU?

I Realize That The Remaining 3 Tests Still Apply And That HBU Might Be As Improved, Legality Of The 2nd Unit Notwithstanding.

You can not appraise it as a duplex, it is a single family home with an illegal garage convertion. The appraiser should not that the garage has illegally been converted to a rental unit and the appraisal should be subject to reconvertion to a garage.

Theres really not much to think about.
m2:
 

CCAAMO

Senior Member
Joined
Sep 17, 2007
Professional Status
Certified General Appraiser
State
California
ZZ,

Just a thought- CA may have some sort of law regarding illegal second units in high density areas that may override the local municipality's statutes.

Do see if you can find that.

I have not seen it but, strangely, it was a building guy from Long Beach who told me about it a few years ago while we were speaking about an historic property in that town.

Brad

Brad, there is no such law in Californa.
 

Jimmy L Kim

Freshman Member
Joined
Oct 23, 2006
Professional Status
Certified Residential Appraiser
State
California
Mr. Brad Ellis is right.
There is such a law(State Assembly Bill 1866) that was passed on Sept of 2002(I think). The intent, I believe, was to provide more affordable rental units. This bill supercedes all local zoning ordinants. I've spoken to planning and zoning departments in various cities in SoCal and each city has their own requirements/conditions but second units are permitted.

See attached link for City of Los Angeles.



From my experience, not too many people are aware of this bill, even contractors. Otherwise, there would have been building frenzy in many parts of the SoCal area.

P.S.

this is my first(maybe second) post but I would like to thank many people on this board for their wisdom and expertise. I've learned so much which in turn has made my work much better.
 

CCAAMO

Senior Member
Joined
Sep 17, 2007
Professional Status
Certified General Appraiser
State
California
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