Okay guys, I have looked in FNMA and searched the forum with no success. I need the comment and reference about GLA needing to be heated and cooled with the rest of the home. Thanks ahead for the help.

Sandra

Skelley, is it a conversion or just basement?

FNMA

LIVING AREA: 
LIVING AREA IS DEFINED AS LEGAL, FINISHED, PERMANENTLY HEATED, LIVING SPACE CONTIGUOUS WITH OTHER LIVING AREA AND REGARDED BY A TYPICAL PURCHASER AS BEING HABITABLE AND AS HAVING UTILITY. THE VISUAL OBSERVATION OF THE ATTIC, THE CRAWL SPACE, ANY UNFINISHED BASEMENT, AND BELOW GRADE STORAGE IS BASED ON HUD’S “HEAD AND SHOULDERS” REQUIREMENT. THIS APPRAISAL REPORT CONFORMS TO THE AMERICAN NATIONAL STANDARDS INSTITUTE ANSI Z765-2003, APPROVED NOVEMBER 2003.

BLuh,

Actually, I have a brick cape cod that has 1176 finished area on the second floor which includes den, 2 bedrooms and a full bath; and .... no heating or cooling! I can't believe he spent the money to finish it out and didn't go ahead and run the ductwork and vents for the HVAC. I have made comment about functional obsolescence and that it cannot be included in GLA but wanted the guideline reference to put in there. I know it has been posted on here in the past and I have searched to no avail.

Sandra

Is he using space heaters?

Hey Anna,

There was no visible source of heat but there was a window AC unit in one bedroom. That is really what first brought it to my attention, and then with further inspection, there are no vents whatsoever. When questioned he did admit that he had not installed any heat or air conditioning up there.

Sandra

It must be hotter than the hinges of hell up there during the summer and cold as a carp in the winter.

Does he intend to complete the work to include a HVAC zoned system? If he has an attic, he could install one up there. Otherwise, he may opt to include space heaters (dangerous, I think) and window units during the summer. He apparently didn't get any advice completing that area, did he?

Is it a finished attic? If so, give it credit as you normally would a finished attic without heat/air. (the market reaction to finished attic less heat/air)

If it is really part of the gla with similar quality, give it credit as you would completely finished gla, without heat/air. (gla less the market reaction for not heat/air) I usually take the adjustment in "functional" and give it full credit as gla. (if it truly qualifies as gla.)

I'm always concerned that the homeowner did not permit this addition and it could be a hazard. I disclaim the finished area and lack of knowledge of the permit and county inspections. I am also concerned that there is addequate ingress/egress (to code), right number of outlets, switches, correct window sizes, etc. Again I suggest a county inspection to ensure it was built to code.

First issue, DB, communicating what could be considered a threat on an open forum is not conducive to what this forum is doing. Stick to the matter at hand, please.
Sandra, if it isn't heated and cooled, you will need to address it as such. See if you can find similar comparables to use, so that you can get reliable data. Other possiblity, you may want to compare it to a finished basement, in that it isn't true GLA, but is finished with the exception of heating and cooling.
I couldn't find the exact link, and I looked as well. Good luck, and let us know how it turns out.