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RubberStamp

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Reply with quote  #1 
So..  where do you draw the line on accessory unit?  I've got detached over the garage apartment, 2 beds 1 bath and kitchen, separate electric.  FHA says this is all acceptable for an ADU.
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Meatloaf

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Reply with quote  #2 
I'm confused..... Why do you draw lines on accessory units?  That sounds like some sort of autistic perversion you have.
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MEP

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Reply with quote  #3 
Most lender want to know if it is separately meters, if so, it is a rental....we are headed down the short road to 2006~2008.
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treskirkland

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Reply with quote  #4 
What does the market say?  I think most people would consider this an ADU.
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RubberStamp

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Reply with quote  #5 
It is separately metered.  But it is subordinate to the main property.  I don't have time to look up the quotes but both FHA and FNMA say it can be an ADU if separately metered, if having a kitchen and bath, if rented...  

That leaves zoning and market reaction for determination.   So my assumption if duplex is not allowed, and the county/city is aware of it and it is on the tax records, that an investor would not easily buy it as a duplex and rent out everything and that it would function more efficiently owner occupied main with an ADU.. It qualifies as an ADU??????

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Bobby

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Reply with quote  #6 
You're not the police.
You should make the extraordinary assumption that everything is proper and legal, unless it is clearly not.  Two meters does not mean it is a duplex, unless it is built to the market and specifications of a duplex.  
Treat it like a pool and try to find something to bracket it with.

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Meatloaf

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Reply with quote  #7 
Soooooooo..... If a duplex has only one meter its a single family??????
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RubberStamp

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Reply with quote  #8 
Quote:
Originally Posted by Meatloaf
Soooooooo..... If a duplex has only one meter its a single family??????


Not all true statements are true if reversed.  So the only thing holding true would be that both a duplex and ADU can have separate meters.  I guess if someone wanted to turn a duplex into condo ownership they could have one meter if somehow the fees incorporated utilities I would think.  Never seen it though.
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Meatloaf

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Reply with quote  #9 
What if it was a duplex where the owner included utilities in the rent.... No need to meter separately.  

Statements such as "has a second meter, therefore its a second unit" are the sole reason that lenders and clients give us such crap about these things.  They raise the questions because they heard some BS appraiser make a comment like that.

WE have eyes and ears and hopefully brains... If you can't figure out if something is an ADU or a multi-family then maybe you should return the C back to the state and just hang onto the R for a little longer.

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MEP

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Reply with quote  #10 
Quote:
Originally Posted by Meatloaf
What if it was a duplex where the owner included utilities in the rent.... No need to meter separately.  

Statements such as "has a second meter, therefore its a second unit" are the sole reason that lenders and clients give us such crap about these things.  They raise the questions because they heard some BS appraiser make a comment like that.

WE have eyes and ears and hopefully brains... If you can't figure out if something is an ADU or a multi-family then maybe you should return the C back to the state and just hang onto the R for a little longer.


In that case it would be a roommate with or without benefits.[wink]

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RubberStamp

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Reply with quote  #11 
Quote:
Originally Posted by Meatloaf

Statements such as "has a second meter, therefore its a second unit" are the sole reason that lenders and clients give us such crap about these things.  They raise the questions because they heard some BS appraiser make a comment like that.


I'm not sure where you are getting that from.  The earlier statement was specific to this property.  An ADU can or not have second meter.  By the descriptions below you can obviously see it is not so cut and dry as you suggest. 

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.

FHA 
An accessory dwelling unit (ADU) is defined as a habitable living unit added to, created within, or detached from a primary single-family dwelling and contained on one lot. ADU’s are commonly understood to be a separate additional living unit, including kitchen, sleeping, and bathroom facilities. ADU’s are subordinate in size, location, and appearance to the primary home and may or may not have separate means of ingress or egress. An attached unit contained within a single-family home, also known as a “mother-in-law apartment,” or a “garage apartment” that may or may not be attached to the primary residence are the most common types of accessory dwelling unit. An accessory dwelling unit sometimes involves the renovation of a garage, basement, or a small addition to a primary residence. The determination of whether or not an ADU is a second dwelling unit is to be made by the appraiser and indicated in the site analysis section of the report where zoning, highest and best use, and legal use are addressed. The fact that an ADU is rented or generates income should not categorically result in a determination that the property contains two dwelling units.


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treskirkland

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Reply with quote  #12 
"ADU’s are subordinate in size, location, and appearance to the primary home"


I think this is the key to determining if it is an ADU or a duplex.   
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Meatloaf

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Reply with quote  #13 
Quote:
Originally Posted by treskirkland
"ADU’s are subordinate in size, location, and appearance to the primary home"


I think this is the key to determining if it is an ADU or a duplex.   


DING DING DING!!!!!

Thats all it takes folks!!! A little common sense.

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MEP

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Reply with quote  #14 
So, my question is: How many of us, 'appraisers', actually check the ADU box? Or, is it overlooked 90% of the time... [confused] 
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Meatloaf

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Reply with quote  #15 
Everytime there is an ADU, I check the box.
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Benjamin

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Reply with quote  #16 
FHA and FNMA have emphasized H&BU to determine if it is and ADU or multi-family, not how they are metered.
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