smartmoney2000
Junior Member
What is the name of your state (only U.S. law)? New York
I am in a dilemma.
I purchased a new construction 3 family home in 10/2008 from a builder/seller. Each apartment has 3 bedrooms (so I thought). Two weeks ago, I began that process of renting one of my apartments to a section 8 tenant. When the section 8 inspector came to assess the apartment, he stated that he could not pass the apartment as a 3 bedroom because it was actually a 2 bedroom apartment because the dimensions in the 3rd bedroom was not a standard size bedroom and the "inward window" (an opening in the wall that faces in the the apartment rather that outward) was not considered a legal window. Also, I cannot install an outside window because my house is adjacent to an apartment building and I don't have the required 30ft between the two.
When I went through the house with the builder/seller prior to purchasing, I inquired about the 3rd bedroom that had inward window and the builder told me that it was an approved window and would pass section 8 guildelines and that the window was considered ventilation.
Well needless to say, although it looked a little weird, the entire home with all "3 bedroom" apartments passed the The Department of Buildings inspection (I have the Certificate of Occupancy) and the bank's appraisal confirming that all 3 apartments have 3 bedrooms. My building is also registered. So as you can see, because I have documents to prove that my entire building "passed" the building codes, I did not anticipate any fraud.
When the Section 8 Inspector kept insisting that it was not a 3 bedroom, I went to the Department of Buildings and Chief Inspector provided me with the approved blue print of my house. Well, the blueprint indicated that the 3rd bedroom was actually a pantry and a closet. Apparently, AFTER, the Builder submitted the initial plans and got everything approved, they went back and changed the structure of the apartments by removing walls and made other changes to convert it into 3 bedrooms. They did not submit an amended building plan to indicate the change. Now the Department of Buildings is concern because the "changed structure" was not approved, so now I don't even know if my building is even safe to reside in.
To make problems even worse, (1) I cannot go back to my closing attorney because he has been convicted and disbarred with a class D felony....grand larceny.....yes, he was involved in a multi-million dollar mortgage scheme,
(2) the title insurance company is not accepting any responsibility and maintains that I have to contact my closing attorney.
So, I need some assistance. I feel that the bank should have some responsibility in addition to the builder/seller because it's appraisor passed and confirmed 3 bedrooms apartments which I am paying taxes and a mortgage on. I have a FHA loan which I know that prior to getting a FHA loan, they a sticklers making sure that property is up to code. If a Section 8 Inspector caught it, why didn't the bank's appraisor catch it??? Instead, they approved it.
When I resale, I cannot resale as 3 bedrooms and I cannot get the monthly rent for a 3 bedroom to help meet my monthly mortgage. So I am taking a lost all the way around.
PLEASE HELP!!!!!
I am in a dilemma.
I purchased a new construction 3 family home in 10/2008 from a builder/seller. Each apartment has 3 bedrooms (so I thought). Two weeks ago, I began that process of renting one of my apartments to a section 8 tenant. When the section 8 inspector came to assess the apartment, he stated that he could not pass the apartment as a 3 bedroom because it was actually a 2 bedroom apartment because the dimensions in the 3rd bedroom was not a standard size bedroom and the "inward window" (an opening in the wall that faces in the the apartment rather that outward) was not considered a legal window. Also, I cannot install an outside window because my house is adjacent to an apartment building and I don't have the required 30ft between the two.
When I went through the house with the builder/seller prior to purchasing, I inquired about the 3rd bedroom that had inward window and the builder told me that it was an approved window and would pass section 8 guildelines and that the window was considered ventilation.
Well needless to say, although it looked a little weird, the entire home with all "3 bedroom" apartments passed the The Department of Buildings inspection (I have the Certificate of Occupancy) and the bank's appraisal confirming that all 3 apartments have 3 bedrooms. My building is also registered. So as you can see, because I have documents to prove that my entire building "passed" the building codes, I did not anticipate any fraud.
When the Section 8 Inspector kept insisting that it was not a 3 bedroom, I went to the Department of Buildings and Chief Inspector provided me with the approved blue print of my house. Well, the blueprint indicated that the 3rd bedroom was actually a pantry and a closet. Apparently, AFTER, the Builder submitted the initial plans and got everything approved, they went back and changed the structure of the apartments by removing walls and made other changes to convert it into 3 bedrooms. They did not submit an amended building plan to indicate the change. Now the Department of Buildings is concern because the "changed structure" was not approved, so now I don't even know if my building is even safe to reside in.
To make problems even worse, (1) I cannot go back to my closing attorney because he has been convicted and disbarred with a class D felony....grand larceny.....yes, he was involved in a multi-million dollar mortgage scheme,
(2) the title insurance company is not accepting any responsibility and maintains that I have to contact my closing attorney.
So, I need some assistance. I feel that the bank should have some responsibility in addition to the builder/seller because it's appraisor passed and confirmed 3 bedrooms apartments which I am paying taxes and a mortgage on. I have a FHA loan which I know that prior to getting a FHA loan, they a sticklers making sure that property is up to code. If a Section 8 Inspector caught it, why didn't the bank's appraisor catch it??? Instead, they approved it.
When I resale, I cannot resale as 3 bedrooms and I cannot get the monthly rent for a 3 bedroom to help meet my monthly mortgage. So I am taking a lost all the way around.
PLEASE HELP!!!!!
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