Mar 31, 2017 - 08:15 AM
Having said that, the ANSI-Z765 standard for measuring residential properties is a very commonly used technique. However, the question of whether a detached structure can be included in a property's GLA calculation may be more of a function of the assignment conditions (e.g., Fannie Mae, VA, FHA guidelines) than the actual technique used to measure the property. For example, Fannie Mae's Selling Guide publication addresses "Accessory Units" as follows:
Fannie Mae will purchase a one-unit property with an accessory unit. An accessory unit is typically an additional living area independent of the primary dwelling unit, and includes a fully functioning kitchen and bathroom. Some examples may include a living area over a garage and basement units. Whether a property is defined as a one-unit property with an accessory unit or a two-unit property will be based on the characteristics of the property, which may include, but are not limited to, the existence of separate utilities, a unique postal address, and whether the unit is rented. The appraiser is required to provide a description of the accessory unit, and analyze any effect it has on the value or marketability of the subject property.
If the property contains an accessory unit, the property is eligible under the following conditions:
• The property is defined as a one-unit property.
• There is only one accessory unit on the property; multiple accessory units are not permitted.
• The appraisal report demonstrates that the improvements are typical for the market through an analysis of at least one comparable property with the same use.
• The borrower qualifies for the mortgage without considering any rental income from the accessory unit.
If it is determined that the property contains an accessory unit that does not comply with zoning, the property is eligible under the following additional conditions:
• The lender confirms that the existence will not jeopardize any future property insurance claim that might need to be filed for the property.
• The use conforms to the subject neighborhood and to the market.
• The property is appraised based upon its current use.The appraisal must report that the improvements represent a use that does not comply with zoning.
• The appraisal report must demonstrate that the improvements are typical for the market through an analysis of at least three comparable properties that have the same non-compliant zoning use.