source:
  type: guide
  id: hud-4000-1-ii-c-gross-living-area
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Gross
    Living Area (04/18/2023)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Gross
    Living Area (04/18/2023).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-c-gross-living-area-full
  canonical_id: hud-4000-1-ii-c-gross-living-area-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Gross Living
    Area (04/18/2023)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Gross
      Living Area (04/18/2023)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'c. Gross Living Area (04/18/2023) i. Definition Gross Living
      Area (GLA) refers to the total area of finished, above-grade residential space
      calculated by measuring the outside perimeter of the Structure. It includes
      only finished, habitable, above-grade living space. ii. Required Analysis and
      Reporting The Appraiser must: • identify noncontiguous living area and analyze
      its effect on functional utility; II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      D. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages
      3. Acceptable Reporting Forms and Protocols (04/10/2025) Handbook 4000.1 828
      Last Revised: 11/26/2025 • ensure that finished basements and unfinished attic
      areas are not included in the total GLA; and • use the same measurement techniques
      for the subject and comparable sales, and report the building dimensions in
      a consistent manner. When any part of a finished level is below grade, the Appraiser
      must report all of that level as below-grade finished area, and report that
      space on a different line in the appraisal report, unless the market considers
      it to be Partially Below-Grade Habitable Space. In the case of nonstandard Properties
      and floor plans, the Appraiser must observe, analyze, and report the market
      expectations and reactions to the unique Property. The Appraiser may apply a
      supplemental measurement standard if it does not conflict with these requirements
      and the Appraiser discloses the use of the standard. iii. Additions and Converted
      Space The Appraiser must treat room additions and garage conversions as part
      of the GLA of the dwelling, provided that the addition or conversion space:
      • is accessible from the interior of the main dwelling in a functional manner;
      • has a permanent and sufficient heat source; and • was built in keeping with
      the design, appeal, and quality of construction of the main dwelling. Room additions
      and garage conversions that do not meet the criteria listed above are to be
      addressed as a separate line item in the Sales Comparison Approach (SCA) Grid,
      not in the GLA. The Appraiser must address the impact of inferior quality garage
      conversions and room additions on marketability as well as Contributory Value,
      if any. The Appraiser must analyze and report differences in functional utility
      when selecting comparable properties of similar total GLA that do not include
      converted living space. If the Appraiser chooses to include converted living
      spaces as GLA, the Appraiser must include an explanation detailing the composition
      of the GLA reported for the comparable sales, functional utility of the subject
      and comparable properties, and market reaction. Alternatively, the Appraiser
      may consider and analyze converted living spaces on a separate line within the
      SCA Grid, including the functional utility line to demonstrate market reaction.
      The Appraiser must not add an ADU or secondary living area to the GLA. II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT D. Appraiser and Property Requirements for
      Title II Forward and Reverse Mortgages 3. Acceptable Reporting Forms and Protocols
      (04/10/2025) Handbook 4000.1 829 Last Revised: 11/26/2025 iv. Partially Below-Grade
      Habitable Space (A) Definition Partially Below-Grade Habitable Space refers
      to living area constructed partially below grade, but has the full utility of
      GLA. (B) Required Analysis and Reporting The Appraiser must report the design
      and measurements of the subject, the market acceptance or preference, how the
      levels and areas of the dwelling are being calculated and compared, and the
      effect that this has on the analysis. Regardless of the description of the rooms,
      bedrooms or baths as above grade or below grade, the Appraiser must analyze
      all components of the subject Property in the valuation process. v. Bedrooms
      The Appraiser must not identify a room as a bedroom that cannot accommodate
      ingress or egress in the event of an emergency, regardless of location above
      or below grade.'
  judgment: false
