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Tax, SDIRAs & Cost Segregation
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Issued Wrong Permits

Account Closed
Posted Nov 22 2022, 20:05

Hello Bigger Pockets Family.

I am finishing up building a 4-plex (2 units up, 2 units down) in an unincorporated area in a Texas county.  I started construction in March 2022.  The building is on a residential lot I purchased from my grandparent's estate.  I grew up on the same street and wish to provide additional housing options in the community.  The units will be leased.  I planned for months, did my research, and called the county often to make sure everything was on track.  Before I began construction work, I pulled permits and only had to submit a site plan.  The site plan is clearly marked Proposed 4Plex Building Two Stories (2 units above and 2 units below).


The actual plans were not required for permitting in this area.  The project is 95% complete.  Water and sewer services have been active for months.  The walls and flooring are installed, and the bathrooms complete.  I only need countertops and power.  I recently requested power and wish to have four separate meters.  The permitting department only released power for one ESIID.  I reached back to my Residential Plan Reviewer, and she informed me she issued the permits in error, and I should have gotten a commercial permit.  I was told to now go apply for a commercial permit and will be subject to Fire Code requirements as the building is commercial and not residential.  Below is the actual email from the Residential Plan Reviewer:
*************

As per our conversation earlier, please note that since the structure has 2 dwelling units at grade and the other 2 dwelling units are on the second story. It would be considered an apartment, not a quadplex. This would not be acceptable under the IRC and would have to be constructed for the IBC as an apartment building.

detached one- and two-family dwellings and townhouses not more than three stories above grade plane in height with a separate means of egress.

*************

Notice she did not mention anything about the building being almost complete or offer a written apology, although she did apologize when she called me.  I was also given the contact number to the Permit Department Manager and Fire Code Manager.  I called the Permit Department Manager first, explained the situation, and he basically referred me to the Fire Code Manager and told me I needed to be a commercial permit.  He did not seem to know the building was 95% complete as he just made the decision to have me pull a commercial permit.  I called the Fire Code Manager next, and she asked that I email her the facts with supporting documentation.  She listened to me and was quite helpful.  I will spend the rest of the week gathering the documents and pictures of the property to send over to her on Monday.

I cannot believe I made it all the way to the end and have experienced this issue.  I want to do things correctly and want to be done.  I have spent almost a half million dollars on this investment and am concerned as it's been a LONG road.  This is another delay, and I am losing money by the day.  The road seems to never end, and this is very frustrating.  Any logical or insight anyone can offer will be greatly appreciated.  Thank you in advance for reading.

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