Lennar "Next-Gen" Design

[ZZGAMAZZ]

I've appraised 6 - 10 builder Next-Gen homes. This tiime the out-of-state lender is insisting that it must be reported as a SFR with an attached A.D.U. I have refused to do so. The absence of a full kitchen is sufficient rationale to avoid the A.D.U. label; and although the kitchenette conceivably could be referenced as a "guest unit," although IMO that's not what it is. I don't intend to change my perspective although surprising I included about 5 similar "Next-Gen" comps so the Opinion of Value presumably wouldn't change much if at all. I don't like my ego getting in the way of an intelligent business decision and wonder whether SoCal peers have a similar experience.

 

[Terrel L. Shields]

I don't follow. It clearly is an ADU with a kitchenette. Is there some local ordinance that it is in violation of? I mean I've never seen a "full" kitchen in an ADU. It's just a 1-2 bedroom ADU with separate entrance, etc. right?

 

[ZZGAMAZZ]

I don't follow. It clearly is an ADU with a kitchenette. Is there some local ordinance that it is in violation of? I mean I've never seen a "full" kitchen in an ADU. It's just a 1-2 bedroom ADU with separate entrance, etc. right?

Well, my recent local Riverside City experience is that an ADU must have a full kitchen (and with all site garage standards eliminated) although a supplemental unit with a kitchenette still requires the site requirement for an enclosed parking garage. That having been said, nowhere in the Lennar organization documents is the supplemental area/unit termed an A.D.U., although I realize that the appraiser's HBU analysis of "functionality" probably is an inherent 5th HBU test. I'm like NEVER stubborn to the extent I would be prone to make a decision that would negatively affect my business standing, when the issue being debated literally has no affect in the OV, although the FHA underwriting hurdles are high here.

 

[glenn walker]

I don't follow. It clearly is an ADU with a kitchenette. Is there some local ordinance that it is in violation of? I mean I've never seen a "full" kitchen in an ADU. It's just a 1-2 bedroom ADU with separate entrance, etc. right?

He is talking about Brand New or newer Construction in So CA that builders call Next Generation or or New homes with attached In Law Suites. And no they are built to both City and State Codes.

 

[Terrel L. Shields]

And no they are built to both City and State Codes.

Then it's an ADU....legally. And why in the WVa forum?

 

[glenn walker]

Then it's an ADU....legally. And why in the WVa forum?

W VA Forum-? The OP is located in Riverside in SO CA

 

[ZZGAMAZZ]

Then it's an ADU....legally. And why in the WVa forum?

Cali implemented a statewide housing law about two years ago, which gave single family residential property owners the wherewithal to build one ADU and one addition junior ADU, subject to developmental standards. An ADU must have a full kitchen. The property owner can rent both iwithout living on-site, but must live on-site if three total units are built. The purpose was to provider supplemental housing, although I've never seen any data about the number of new, formal ADU's built during the past year or two. (Coincidentally, I was told recently by a City Planner that PUD's can't restrict a property owner from adding ADU's, submit as always to the lot size, set=backs, etc., etc.

 

[Terrel L. Shields]

An ADU must have a full kitchen

What item is missing from the "kitchenette" specifically that is called for by the state law?

 

[ZZGAMAZZ]

What item is missing from the "kitchenette" specifically that is called for by the state law?

Stove/Range is integral to a "full kitchen," although a kitchenette has no cooking source except possibly a microwave. It's interesting that with consideration for all of the Cali hullabaloo concerning the recent ADA regs, the distinction between an A.D.U. and a "guest/granny/motherinlaw/etc. unit is rarely if ever discussed, although dozens of jurisdictions with which I previously was familiar did not allow the stove/range in a "supplemental dwelliing unit," in the past, because the presumed functionality of that type of unit was that the occupants--relatives, visitors, etc.--typically would rely upon kitchen services prepared/provided in the Main Unit. {At least that's my perspective of the issue, although it's not like peer dialogue about appraisal industry issues occurs anywhere in the world other than here on the AF.]

 

[sputnam]

This is why it still takes a thoughtful and experienced appraiser to get a quality opinion of value. You can not make 'rules' that will cover every situation appraisers may encounter. The definition of ADU can vary. The equipment in a kitchenette can vary. There is no one, universal answer. Do what is common for the market where the property is..... and.... explain. Show your work.... or at least... describe the work you did.