Went to an assignment for a 2 family but found out this was a single family converted to a 2 family by converting the basement into the second dwelling. This was permitted and legally done as per the paperwork from NYC. The question becomes should I count it towards GLA? It is below grade but how to complete? Any help?
I have read you can legally convert a 1 family and rent out the basement if you get all the proper permits and drawings.
For Fannie Mae work, 2-4 unit properties, you should be looking at the GBA, not the GLA. Refer to the Selling Guide for more info.
Gross Building Area
The gross building area
• is the total finished area including any interior common areas, such as stairways and hallways of the improvements
based on exterior measurements;
• is the most common comparison for two- to four-unit properties;
• must be consistently developed for the subject property and all comparables used in the appraisal;
• must include all finished above-grade and below-grade living areas, counting all interior common areas such as stairways,
hallways, storage rooms; and
• cannot count exterior common areas, such as open stairways.
Fannie Mae will accept the use of other comparisons for two- to four-unit properties, such as the total above-grade and below-
grade areas discussed in Gross Living Area, provided the appraiser
• explains the reasons he or she did not use a gross building area comparison, and
• clearly describes the comparisons that were made.
