Condo Density Primer
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Many appraisers still seem confused as to what the form means by density.
In the project section of Fannie Mae form 1073 the first line addresses topography, size, density and view. Many appraisers still seem confused as to what the form means by density.
Appraisers enter and AMCs approve phrases like: average or typical or even a calculation such as 50 units / 12,975 square feet.
Appendix D regarding UAD reporting offers no guidance. What are they asking for and what does it mean?
Fannie is looking to see if the existing density can be rebuilt following a catastrophic loss. In most instances the density limitations are found in the municipality’s zoning code.
The density question is a math equation not a subjective term like typical or average.
A 3-unit condo building on a 3,125 square foot site has a density of 41.82 dwelling units per acre.
43,560 / (3,125 / 3)
The John Hancock building in Chicago sits on 2.38 acres and contains about 700 residential condominium units. The density is 293.71 dwelling units per acre.
In Decatur, as in many other Illinois communities, the zoning ordinance parses out density based upon bedroom variables in their R-6 zoning.
- Efficiency units—750 Sq.Ft. per D.U.
- 1 Bedroom units—900 Sq.Ft. per D.U.
- 2 Bedroom units—1,200 Sq.Ft. per D.U.
- 3+ Bedroom units—1,500 Sq.Ft. per D.U.
Appraisers and AMCs need to be aware of and understand the forms and what they’re asking for.
By Brian Weaver, Coordinator Editor of IllinoisAppraiser, Appraisal Management Company Coordinator for the Illinois Department of Financial and Professional Regulation (IDFPR) – Illinois Appraiser Newsletters – Volume 8, Issue 2