Substantial Improvements 4 Units Converted to 3

[jar546]

I am looking for some opinions or quoted requirements for the following:

A 4 unit condo with separate deeds and owners for all 4 units is looking to turn the 2 units on the upper floor into 1 unit, therefore changing this from a 4 unit condo building to a 3 unit condo. The county tax office has an appraisal for each of the 4 units. If you know that plan is to go from 4 units to 3, how can you accept an appraisal for the condo with 4 units to determine substantial improvements. Should it be assessed for the planned 3 that will be?

 

[Keystone]

I follow what the logic but I’m doubtful the county will re-access the properties prior to renovation/alteration.

IMO, if your taking two of the four units and making them one that is making a change of 50% despite the end results being 3 units.

 

[InspectorOrf]

Determining the market value is predominantly done through tax assessment values. If the new market value is different because the property is changing use, the onus to demonstrate market value falls to the applicant.

https://www.fema.gov/media-library/assets/documents/18562

"Applicants may disagree with a community’s SI/SD determination. In these cases, the burden is on the applicant to provide improved cost estimates or to obtain a professional appraisal of market value. The local official is responsible for reviewing the new information. In some cases, applicants may seek a formal appeal of the local official’s decision (Section 5.6.6).'

 

[e hilton]

Not sure i fully understand the question ... but wouldn’t SF of the units be a big factor?

 

[Nearly-Complete]

Are you talking about flood zone substantial improvement determination? I can’t know how you locals will administer it, but FEMA is looking for the value before the work is started. For anything approaching the 40-50% range I always require a professional appraisal using the cost approach. Square footage times and appropriate multiplier to determine the cost it would be to reconstruct the building right now, minus depreciation for age and condition. The tricky part is you are not allowed to include the cost of land or intangibles such as location.