Single Family w/ in-law OR 2 Units?

[WATCHOUT]

What physical criteria determines if a detached dwelling has 2 units or is a single unit w/ an in-law suite?? 1) The house is in R-1 which is single family dwellings. 2) Most of the utilites are separate except for the furnace which supplies heating to both units. 3) The additional unit (not main dwelling) occupies about 30-35% of the total dwelling space above grade. 4) The additional unit is located on the 1st floor only, it basically splits the 1st floor in half - side by side)...while the 2nd and 3rd floor which are smaller than the 1st floor....belong soley to the larger unit. Your help is very much appreciated!!!!

 

[Mike Kennedy]

Which municipality?

 

[WATCHOUT]

Bensalem Township - Bucks County, PA

 

[Riick]

I think Bensalem has separate zoning classification for 2-family. I'd check on that 1st, & what township says is legal use.

Since heat is not separate, might qualify as an in-law unit under FNMA guidelines.
However, pretty big % of GLA for an ancillary unit.

Here is a pretty definitive answer to questions you haven't asked: LINK

Other Questions: Any of the property rented? Is this a sale?

You should note that as 2-family, income from both units can be used to help estimate the value of the property
As an "in-law" unit - can't use those dollars.
Errrrrrr... But then again, there aren't supposed to BE any dollars coming in from an "in-law" unit.
.

 

[WATCHOUT]

Rick -- thanks for working with me. This is a Purchase. The larger unit is vacant and the smaller unit is currently rented but tenants are in the process of moving out. Yes I realize (in general) rents can help determine value if a multi...but that’s the whole thing...multi's in R-1 - Single Family are illegal. Thus what is the 'criteria' for determining whether the 2nd unit (again the 2nd unit occupies about 35% of the total space/sq ftg) is an a 'accessory unit' or an 'in-law suite'. I'm not familiar with the guidelines for this exact issue. Are you?

 

[Mike Kennedy]

http://www.municode.com/resources/gateway.asp?pid=13184&sid=38 232-6

Sec. 232-6. Definitions.
(a) Unless otherwise indicated within this chapter, certain words and phrases used in this chapter shall have the following meanings:

Accessory structure. A structure subordinate to the [main] principal structure on a lot and used for purposes customarily incidental to those of the principal structure.

In no case shall the accessory structure footprint in a residential district exceed the footprint of the principal structure by more than 25 percent.


Dwelling unit and dwelling:

(1) Dwelling unit. Any room or group of rooms located within a residential structure and forming a single habitable unit with facilities used or intended to be used for living, sleeping, cooking, eating and toilet facilities by one family.

(2) Dwelling:

a. Single-family dwelling. A structure on a lot designed and occupied as a residence for one family.

b. Two-family or duplex dwelling. A structure on a lot, designed and occupied as a residence for two families.

c. Multiple dwelling. A structure on a lot designed and occupied wholly or in part as a residence for three or more families.

ZONING CODE: Sec. 232-3. Nonconforming uses permitted.
Any lawful existing structure and the lawful existing use of such structure or land not in conformity with this chapter shall be regarded as nonconforming. Nonconforming use shall mean a use, whether of land or of structure, which does not comply with the applicable use provisions of this chapter or any amendment heretofore or hereinafter enacted, where such use was lawfully in existence prior to the enactment of this chapter or amendment, or prior to the application of this chapter or amendment to its location by reason of annexation. Nonconforming structures and uses are permitted subject to section 232-581.

(Ord. No. 96-05, Art. I(102), 6-3-96)


Sec. 232-153. Area regulations.
(a) Lot area. An R-1 lot of not less than 12,000 square feet per family shall be provided for every building hereafter erected or used in whole or in part as a dwelling.

Sec. 232-152. Use regulations.
A building may be erected or used, and an R-1 lot may be used or occupied for any one of the following uses and no other:

(1) One single-family detached dwelling.


Building and Planning Department Personnel

Matthew Takita
Director and Zoning Officer
215-633-3643
Jackie Ryan
Office Manager/Administrative Asst.
215-633-3654
Stan Tasey
Building Inspector II
215-633-3645
Vacant
Electrical Inspector
215-633-3649
Michael Kirk
Code Enforcement Officer
215-633-3648
Verna Franklin

 

[WATCHOUT]

Mike -- you're the man. Thanks for imparting some wisdom to this learned one Thanks for digging, much, much appreciated.

 

[Mike Kennedy]

Watch- you're welcome - recommend verifying the online info is the most recent and STILL relevant. Good Luck with it.

 

[Riick]

I have the old book, but Fannie's gone to electronic version and no PDFs that I know of. Did you read the pdf in the link I put in earlier?? if not, click on LINK there.

Bottom line is that the xtra unit must have little value when compared with the entirety of the property. At 30-35% of the GLA, I'd think that what you have is a purely illegal unit.
.

 

[Mike Kennedy]

FANNIE XI, 404.01: Zoning (01/31/06)
The appraiser is responsible for reporting the specific zoning classification for the subject property. The appraiser must include a general statement to describe what the zoning permits—“one-family,” “two-family,” etc.—when he or she indicates a specific zoning such as R-1, R-2, etc. The appraiser also must include a specific statement indicating whether the improvements represent a legal use; a legal, but non-conforming (grandfathered) use; or an illegal use under the zoning regulations; or whether there is no local zoning.

We generally will not purchase or securitize a mortgage on a property if the improvements do not constitute a legally permissible use of the land.

We do make certain exceptions to this policy, as long as the property is appraised and underwritten in accordance with the special requirements we impose as a condition to agreeing to make the exception:

EXCEPTIONS:
•We will purchase or securitize a mortgage that is secured by a one-family to four-family property or a unit in a PUD project if the property represents a legal, but non-conforming, use of the land—as long as the appraiser’s analysis reflects any adverse effect that the non-conforming use has on the value and marketability of the property.

•We will purchase or securitize a condominium unit mortgage or a cooperative share loan from a project that represents a legal, but non-conforming, use of the land only if the improvements can be rebuilt to current density in the event of their partial or full destruction. (In such cases, the mortgage file must include a copy of the applicable zoning regulations or a letter from the local zoning authority that authorizes reconstruction to current density.)

•We will purchase or securitize a mortgage secured by a one-family or two-family property that includes an illegal additional unit or accessory apartment (which may be referred to as a mother-in-law, mother-daughter, or granny unit) as long as the illegal use conforms to the subject neighborhood and to the market.

The property must be appraised based upon its current use and the borrower must qualify for the mortgage without considering any rental income from the illegal unit.

The appraiser must report that the improvements represent an illegal use and demonstrate that the improvements are typical for the market through an analysis of at least three comparable properties that have the same illegal use.

The lender also must make sure that the existence of the illegal additional unit will not jeopardize any future hazard insurance claim that might need to be filed for the property.

We will not purchase or securitize a mortgage secured by a three-family to four-family property that includes an illegal accessory apartment