There are lovely units on the market that do comply with the zoning law. I have heard of this situation, not only with condos, but apartment building, houses , etc.. Remember the currant codes are "the law" and much be followed, at all times.
So I would say no.. most condo's should be conforming... from time to time zoning changes make an existent structure become non-conforming... so this must be the specific case here... there are lenders that will do a loan with a rebuilt letter from the city stating that if something happens to less than 50% of the structure and it needs to be rebuilt, they would authorize to rebuild it to the same usage it had before (albeit non-conforming).
I may be able to put you in contact with a lender that may be able to help you if you contact me directly.
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Ron Escobar, MBA
Broker & General Contractor
The SoCal Investment Real Estate Group
Sothebyâ€™s International Realty
License # - 01343854
The great thing in the world is not so much where we stand as in what direction we are moving. ~Oliver Wendell Holmes
I would think that most SM condos that are properly appraised do not qualify for conforming loans because of this, but have heard nothing about this.