Unpermitted Accessory Dwelling Unit Issue

[Terrel L. Shields]

giving no value for the unpermitted kitchen.

So, you pretend it does not exist? Why not follow the FNMA guidelines instead.

 

[Tom4value]

View attachment 107921

Is an ADU (or a second unit subordinate to the primary dwelling) allowed under current zoning?

It does not say anything about permits. It goes on to say not allowed under zoning = Not allowed under any circumstance.

In my market, every community that allows ADUs state in their by-laws, “allowed with Special Permit”. Therefore, “allowed under current zoning code” has to include a special permit or it is just as illegal as if they weren’t allowed at all.

You frequently state, “we are not the permit police”. True. The Building/Zoning/Inspection Department is. However, since they have the power to regulate and/or prosecute infractions of the subject property, we have the obligation to our client to inform them of what may happen to the property they are using as collateral.

 

[Dublin ohio]

However, since they have the power to regulate and/or prosecute infractions of the subject property

True, but do they when it comes to improvements that have been done without a building permit. Unless someone drops a dime, how would they even know about it.

 

[Tom4value]

So, “It’s only illegal if you get caught”.

With an ADU, you are talking about persons living there; cooking, sleeping, using plumbing and electricity. Permits are for a reason. To make sure the area is safe. God forbid there is a fire and a person is injured or dies because of poorly installed electrical or cooking and insufficient egress. The first thing the fire department and insurance adjusters will look at is if it was properly permitted. If not, the owner is in big trouble. If they are in big trouble, then so is the lender who no longer has a property as collateral. Then you are in trouble.

 

[Terrel L. Shields]

So, “It’s only illegal if you get caught”.

My argument is that illegal or not, it likely contributes value and is not to be ignored. That's the real issue. Pretending it is invisible isn't a solution.

 

[Fernando]

Not all ADUs are alike. Appraisers should be able to see the quality and appeal to market and decided how much to adjust.
AI can't do that.

 

[Joe Flacco]

In my market, every community that allows ADUs state in their by-laws, “allowed with Special Permit”. Therefore, “allowed under current zoning code” has to include a special permit or it is just as illegal as if they weren’t allowed at all.

You frequently state, “we are not the permit police”. True. The Building/Zoning/Inspection Department is. However, since they have the power to regulate and/or prosecute infractions of the subject property, we have the obligation to our client to inform them of what may happen to the property they are using as collateral.

Of course you describe it as what it is. It is an ADU and they did not obtain permits to have a stove. It's still an ADU that exists.

You inform the client exactly what exists.

 

[Joe Flacco]

If somebody built a deck and didn't pull permits, would the deck have no value? You would pretend the deck doesn't exist?

 

[Joe Flacco]

Most people don't even rent out ADUs. What has value is the finished space. Detached or attached or in a basement. It's not the $2500 stove and the income potential.

 

[Dublin ohio]

So, “It’s only illegal if you get caught”.

With an ADU, you are talking about persons living there; cooking, sleeping, using plumbing and electricity. Permits are for a reason. To make sure the area is safe. God forbid there is a fire and a person is injured or dies because of poorly installed electrical or cooking and insufficient egress. The first thing the fire department and insurance adjusters will look at is if it was properly permitted. If not, the owner is in big trouble. If they are in big trouble, then so is the lender who no longer has a property as collateral. Then you are in trouble.

No kidding. i wasn't inferring that it shouldn't be disclosed. But some posters use the premise that "it can't be rented" as well as the unpermitted improvements might have to be removed as a reason to make them invisible. All of that could be true. But what is to stop it. It is illegal to speed. But it happens everyday en masse.