Prperty Classification

[Tombone]

Hi Need help-I was sent on an assignment to do a 2-4 family duplex and when I arrived it was a single family home with another single family home on the same lot. The owner rents both homes and they are not attached. The have sep utilities etc. I thought this would be a SFR with accessory unit as one underwriter claimed but the review appraiser said it should be considered a duplex?? What do you think??-sorry about the typo..

 

[Lee Lansford]

Hi Need help-I was sent on an assignment to do a 2-4 family duplex and when I arrived it was a single family home with another single family home on the same lot. The owner rents both homes and they are not attached. The have sep utilities etc. I thought this would be a SFR with accessory unit as one underwriter claimed but the review appraiser said it should be considered a duplex?? What do you think??-sorry about the typo..

This may be too simple and obvious, but...what does the zoning administrator have to say about the legal use of the property?

 

[Tombone]

Tombone

It is classified as RP2 (mixed single and multi-family) The City of course does not consider it a duplex.

 

[Lee Lansford]

It is classified as RP2 (mixed single and multi-family) The City of course does not consider it a duplex.

So...though zoning (from what you have shared here) would appear to allow the Subject to be a legal 2-unit property, it is in fact NOT a legally permitted 2-unit property.

I believe that you have had the answer to the problem, but your original post would indicate otherwise. Or, am I missing something here?

 

[Tombone]

Well my question is should this be appraised as a 2-4 unit property (1025 form) or not. It is not going to compare to typical attached duplexes. The zoning allows for both single and multi-family. The City does not consider it a muti-family, rather mixed use. Thanks

 

[c w d]

Well my question is should this be appraised as a 2-4 unit property (1025 form) or not. It is not going to compare to typical attached duplexes. The zoning allows for both single and multi-family. The City does not consider it a muti-family, rather mixed use. Thanks

No. It is not a multifamily dwelling. Note the singularity of "dwelling". It's not plural. What you have is 2 SFR on one lot. Recheck zoning for lot limits. Particularly check to see if there can only be one dwelling per X SQFT. And you'll have to check to make sure the setbacks are adequate, etc, etc, etc.

For instance, in my city RLD-G is residential low density. The G dictates that lots can be no smaller than 60'x100' and there can only be one dwelling per 6000SQFT with 10ft setbacks, etc, etc, etc......

If your lot and dwellings don't meet minimums then the next step is to check for grandfathering. If it's grandfathered then the dwellings will be legal non-conforming. Otherwise, it could be an illegal use. This should get you started......

 

[Mark to market]

Sounds like a two family property.

FYI, FHA has a good definition of an accessory unit.

Accessory Unit / Accessory Dwelling Unit
The accessory unit is defined as a habitable living unit added to, created within, or detached from a single-family dwelling that provides the basic requirements for living, sleeping, eating, cooking, and sanitation.

Accessory Dwelling Units (ADUs) are commonly understood to be a separate additional living unit, including separate kitchen, sleeping, and bathroom facilities, attached or detached from the primary residential unit, on a single-family lot. ADUs are usually subordinate in size, location, and appearance to the primary unit and may or may not have separate means of ingress or egress.
Attached units, contained within a single-family home, known variously as "mother-in-law apartments," are the most common type of accessory dwelling unit. Accessory units usually involve the renovation of a garage, basement, or small addition to a single-family home.

FHA Criteria
“Accessory dwelling unit" means a subordinate dwelling unit may or may not be incorporated within, or detached from a single-family structure. Accessory units may not be subdivided or otherwise segregated in ownership from the primary residence structure.

Some accessory units may predate the adoption of local zoning ordinance and may therefore be classified as legal nonconforming units.

Utility Service Requirements
An accessory apartment must be connected to the utilities (except telephone, television and cable) of the dwelling unit and may not have separate services.

 

[Lee Lansford]

Well my question is should this be appraised as a 2-4 unit property (1025 form) or not. It is not going to compare to typical attached duplexes. The zoning allows for both single and multi-family. The City does not consider it a muti-family, rather mixed use. Thanks

"The City does not consider it a multi-family, rather mixed use."

So...what IS the legally permitted use of the property? Therein is your answer!

I suspect that the definitive answer is "out there" somewhere, but I'm uncertain if we have nailed it!

 

[Lee Lansford]

Sounds like a two family property.

...

Mark, how do we know that to be true unless we know the legally permitted use (still awaiting clarification from the original poster)?

Lee

 

[Tombone]

Tombone

Well ******** wanted it done as SFR-w 1007 and the reveiw CO wanted 1025. After I completed the SFR with rental they the asked to have it done as 1025. Of course they don't want to pay for both but theyare going to have to. Once again the City considers it legal non-conforming and will permit to be rebuilt at present use. I think what it boils down to is the zoning allows both single and multi family. I am going to do it as a 2-4 but not sure I agree, although it will be easier because there are lots of different opinions on applying contributory value of the accessory unit, but no place on a 1004 to do it. I'm sure they are not going to like the comps (duplex units) but be careful what you ask for. Its only taken them a week to make a decision.

Thanks for your input.

Tom