Just gotta love NYC

[ginna currie]

Received a call from a client to appraise a mixed use, 6 family over 2 stores in Brooklyn. The C of O currently in effect, is for the original use as an 8 family. Plans were finally approved in 5/06 for the conversion that took place years ago(1992-when the plans were first submitted). It has been assigned a mixed use building class for assessment purposes by the department of finance -and is tax accordingly(has nothing to do with legal use). The new C of O application was submitted in May 2006.... who knows when it will be approved. I am not doing a "before and after" appriasal. I am going with the old C of O and will include it with pending app in report(client & bank don't understand why not 6 over 2). Just curious, would anyone do this another way?

 

[The Warrior Monk]

I don't have much experience on the commercial end with this type of assignment, but I would think that whether the converted use is legal would come into play.

Is the use a conforming or nonconforming use? If it is conforming, then approval is likely; little risk. If it's nonconforming, then at a minimum the approval process is much longer, and the possibility exists that it may not be approved; lots of risk.

Either way, the property is not likely to transfer (with lender financing) until the proper C.O. is in place.

 

[ginna currie]

Yes Dave, that is why I am I doing it as the 8 family. I meant to say the mortgage broker(not the bank) doesn't understand why I will not state the subject is 6 family over 2. There are a couple of outstanding building violations according to www.NYC.GOV so I doubt there will be any changes in the next week or two that will impact this report.

 

[Hal Mann]

When you say "I will not state the subject is 6 family over 2", do you mean you will not mention that it is currently occupied in such a way, or do you mean that you will not value it as such? I hope you would describe the improvements as they are when you saw them.

Your client (the lender, not the broker) may want to know its value both as an 8-family and under the hypothetical condition that it has a CofO for the commercial uses. From what you say, it sounds as if the granting of the CofO is a reasonable assumption (even if it does take another 10 years!). I am sure the lender is considering a loan based on the commercial use and would like to know what that (now hypothetical) value would be. It would be useful to get some guidance from your client about their needs.

 

[ginna currie]

Yes, I will describe the present improvements to the land with the pending C of O. I think the owner is trying to get an expediter to speed the process along at the buildings department, because I was asked to hold the job for "a little while". What ever that means.