Where is FHA definition of Above/Below Grade

[Alan H]

Guys & Gals:

I'm wracking my brain trying to find where FHA states what is and is NOT considered above grade.

I'm in the middle of a debate over whether the finished space in the lower level of a Bi-Level (yeah I know) may be included in the GLA for FHA.

The lower level has 1 front wall below grade and 25% of the 2 side walls are also below grade. The other party insists that the 75% of the lower level which is above grade may be included in GLA. I say NFW and I know I'm correct, but I can't find the page to show him, so he'll shut up. I already showed him the ANSI paper and the Fannie Mae guideline, but he insists on seeing an FHA document.

I know I've read it somewhere, I just can't find it now.

m2:

 

[MNPike]

Basement
Generally, may be partially or completely below grade (ground level). Do not count the basement in the finished gross living area at the grade level. The information provided must be consistent with the description in the Foundation section.

D-22

its above grade - or its basement

 

[Greg Bell]

Use this....FHA uses FNMA Guidelines

FNMA GUIDELINES :XI, 405.06: Gross Living Area (06/30/02)
The most common comparison for one-family properties (including units in PUD, condominium, or cooperative projects) is above-grade gross living area. The appraiser must be consistent when he or she calculates and reports the finished above-grade room count and the square feet of gross living area that is above-grade. For units in condominium or cooperative projects, the appraiser should use interior perimeter unit dimensions to calculate the gross living area. In all other instances, the appraiser should use the exterior building dimensions per floor to calculate the above-grade gross living area of a property. Only finished above-grade areas should be used—garages and basements (including those that are partially above-grade) should not be included. We consider a level to be below-grade if any portion of it is below-grade—regardless of the quality of its "finish" or the window area of any room. Therefore, a walk-out basement with finished rooms would not be included in the above-grade room count. Rooms that are not included in the above-grade room count may add substantially to the value of a property—particularly when the quality of the "finish" is high. For that reason, the appraiser should report the basement or other partially below-grade areas separately and make appropriate adjustments for them on the "basement and finished areas below-grade" line in the "sales comparison analysis" grid. To ensure consistency in the sales comparison analysis, the appraiser generally should compare above-grade areas to above-grade areas and below-grade areas to below-grade areas. The appraiser may deviate from this approach if the style of the subject property or any of the comparables does not lend itself to such comparisons. However, in such instances, he or she must explain the reason for the deviation and clearly describe the comparisons that were made.

 

[Greg Bell]

This is moohey importente...

basements (including those that are partially above-grade) should not be included

 

[Mr Rex]

Revised Appendix D, page D-22:

Basement
Generally, may be partially or completely below grade (ground level). Do not count the basement in the finished gross living area at the grade level. The information provided must be consistent with the description in the Foundation section.

 

[timd354]

Guys & Gals:

I'm wracking my brain trying to find where FHA states what is and is NOT considered above grade.

I'm in the middle of a debate over whether the finished space in the lower level of a Bi-Level (yeah I know) may be included in the GLA for FHA.

The lower level has 1 front wall below grade and 25% of the 2 side walls are also below grade. The other party insists that the 75% of the lower level which is above grade may be included in GLA. I say NFW and I know I'm correct, but I can't find the page to show him, so he'll shut up. I already showed him the ANSI paper and the Fannie Mae guideline, but he insists on seeing an FHA document.

I know I've read it somewhere, I just can't find it now.

m2:

Suggested Response to the fool:

Dear Sir or Madam:
If you need any information regarding FHA appraisal protocols or any other information please see HUD's website at www.HUD.gov. At that website, you can find any information that you may need regarding FHA appraisals. I have already informed you of the FHA requirements and accepted appraisal practice and do not have time to sift through the guidelines to provide evidence to the ignorant and uninformed that the professional answers that I have already provided are correct. Thank you and have a nice day.

 

[Lee Lansford]

Hint:

Look at the 1004/URAR.

See page 1, "improvements" section.

Look for the sentence that begins "Finished area above grade" and ends with "Square Feet of Gross Living Area Above Grade."

Finished area that is partially, or fully, below-grade may have a contribution to value that is similar (or: less or more...I suppose) to GLA, but it is not GLA.

 

[Mike Kennedy]

FHA 4150.2 SECTION 3-3A GROSS LIVING AREA

Gross Living Area is the total area of finished, above–grade residential space. It is calculated by measuring the outside perimeter of the structure and includes only finished, habitable, above–grade living space. Finished basements and unfinished attic areas are not included in total gross living area.

SECTION 3-3B BASEMENTS

As a rule basement space does not count as habitable space. If the bedroom does not have proper light and ventilation, the room can not be included in the gross living area. The following requirements apply to the valuation of below–grade rooms:

•The windowsill may not be higher than 44 inches from the floor.
•The windowsill must have a net clear opening (width x height) of at least 24 inches by 36 inches.
•The window should be at ground level; however, compensating factors may allow less.​

In all cases, use reasonable care and judgment. If these standards are not substantially met, the basement area cannot be counted as habitable space.

http://www.georgiaappraiser.com/HUD/toc_closedbook.gif3-3 Analysis of Physical Improvements


http://www.HUD.gov/offices/adm/hudclips/handbooks/hsgh/4150.2/index.cfm

 

[BUCKET]

Here

4105.3-3 A + B