Legally Permissible ?

[CANative]

I had a somewhat similar assignment.
A particular property was allowed for 2-units and that is what it had been. Owner decided to renovate and then split the 2-units and create 2 new units (total of 4). The subject was a historic property, already non-conforming (at 2-units) and the city would not allow 4-units... period.
The assignment was for a lender (FRI). Despite this illegal use, the bank required an as-is appraisal anyway (I believe as part of its documentation process to show why it did not make the loan). This bank does not sell to the GSEs and required USPAP/FIRREA/IA compliance.
Assignment required an as-is value. H&BU as-improved was to remodel (change the use back to a 2-unit). Complicating the assignment was the fact that there were renters and this was a rent-control ordinance property. Further complicating the assignment was the borrower was well connected into the local political establishment.

It took a lot of time; this was a complicated assignment. I should have charged more but it was (and remains) an excellent client.

Good luck!

Not to mention the owners wife was pretty hot.

 

[hastalavista]

Not to mention the owners wife was pretty hot.

That was another property.

 

[Terrel L. Shields]

Is that like "hot good looking" or "hot under the collar"... Most of my appraisals involve the latter.

 

[Tom D]

ok, i don't understand why anybody would accept an "as currently used value" on this property when in theory l&i could shut it down at any time. that's like doing an appraisal on dorothy's house while the tornado is spinning it around. do you have to put a warning label on this appraisal?