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Home My WebLink AboutM112105 ~\ tQU~e A;) ~ON~ ~ ~/~~ O~\ ~ '-' !~ \. '1.~ ~ ~(~I ~I ~ ~ ~/ ~'Y 1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368 James A. DeLeo William S. Marlow Richard A. Broders MINUTES November 21,2005 William S. Marlow Richard A. Broders James A. DeLeo Chairman Vice-Chairman Member Chairman William S. Marlow called the meeting to order at 9:30 a.m. in the presence of Vice-Chairman Richard A. Broders and Member James A. DeLeo. HEARINGS Discovery View Associates c/o Property Research Ltd., W. Scott Phinney/Christopher Robinson 1 Mount Jefferson Terrace Lake Oswego, W A 97035 BOE: 05-36-C PN: 948332903 No representative was present on behalf of Discovery View Associates. Appraiser Robert Shold represented the Assessor's office and was sworn in by Chairman Marlow. The property under appeal consists of a low-income housing development known as Discovery View Apartments located at 1051 Hancock Street, Port Townsend. On the petition form the appellant stated: 'This is a low-income housing project subject to government restrictions. It should be valued based upon proper consideration ofthe impact ofthose restrictions. The capitalization rate should be higher than that for conventional properties to reflect the increased risk relating to government control of many of the owner's traditional ownership rights. The Washington Court of Appeals has ruled that these restriction must be considered in the valuation process. Actual, not market, income must be used for valuation. The rental income shown on the operating statement reflects the maximum rents the project can charge as of the assessment date pursuant to its governmental regulatory agreements. Tax credits and interest subsidies, if any, should be ignored as intangibles or financing provisions that are not part of the real property valuation under Washington law." Letters and additional documentation was provided as evidence with this appeal. Currently, the property is assessed at $1,671,330 ($749,760 for the land and $921,570 for the improvements). The appellant's estimate of value is $1,100,000 ($749,760 for the land and $350,240 for the improvements). Phone (360)385-9100 Fax (360)385-9382 jefibocC@Co.jefferson.wa.us Board of Equalization Minutes - November 21, 2005 Pa2e: 2 Mr. Shold explained that this property was valued using a cost approach which resulted in an improvement value of approximately 52.5 million. Due to the fact that the property is a subsidized housing project and subject to government restrictions, a substantial adjustment was made to the improvement value which reduced it to $921,570. He feels this adjustment adequately addresses any issues relating to the subsidized nature of this property. He also noted that there have not be been any recent sales of subsidized housing. After reviewing all the information submitted and hearing the testimony of the Assessor's representative, Chairman Marlow closed the hearing. The Board will conduct a physical inspection of the property and make a determination at a later date. Nor'West Village - P.T. LLC c/o Property Research Ltd., W. Scott Phinney/Christopher Robinson 1 Mount Jefferson Terrace Lake Oswego, W A 97035 BOE: 05-37-C PN: 948314201 No representative was present on behalf of Nor'West Village P.T., LLC. Appraiser Robert Shold represented the Assessor's office and was previously sworn in by Chairman Marlow. The property under appeal consists ofa low-income housing development known as Nor'West Village located at 1921 Sherman Street, Port Townsend. On the petition form the appellant stated: "This is a low-income housing project subject to government restrictions. It should be valued based upon proper consideration ofthe impact of those restrictions. The capitalization rate should be higher than that for conventional properties to reflect the increased risk relating to government control of many ofthe owner's traditional ownership rights. The Washington Court of Appeals has ruled that these restriction must be considered in the valuation process. Actual, not market, income must be used for valuation. The rental income shown on the operating statement reflects the maximum rents the project can charge as of the assessment date pursuant to its governmental regulatory agreements. Tax credits and interest subsidies, if any, should be ignored as intangibles or financing provisions that are not part of the real property valuation under Washington law." Letters and additional documentation was provided as evidence with this appeal. Currently, the property is assessed at $1,820,600 ($712,600 for the land and $1,108,000 for the improvements). The appellant's estimate of value is $405,000 ($205,000 for the land and $200,000 for the improvements). Mr. Shold explained that this property was valued using a cost approach and no adjustment was made except for depreciation which reduced the improvement value by 20%. No adjustment was given for government restrictions because the apartments have been upgraded and the Assessor's office was not aware of the status of this particular housing project. He noted that the Board may want to make some kind of an adjustment to reduce the value, but, the value should not be as low as the appellant's estimate. After reviewing all the information submitted and hearing the testimony of the Assessor's representative, Chairman Marlow closed the hearing. The Board will conduct a physical inspection of the property and make a determination at a later date. Board of Equalization Minutes - November 21, 2005 Laurel Heights, LLC c/o Property Research Ltd. W. Scott Phinney/Christopher Robinson 1 Mount Jefferson Terrace Lake Oswego, W A 97035 Page: 3 BOE: 05-38-C 05-39-C 05-40-C 05-41-C 05-42-C 05-43-C 05-44-C 05-45-C 05-46-C 05-47-C 05-48-C 05-49-C 05-50-C 05-51-C PN: 966700001 966 700 002 966 700 003 966 700 004 966 700 005 966 700 006 966 700 007 966 700 008 966 700 009 966 700 010 966 700 011 966 700 012 966 700 013 966700014 No representative was present on behalf of Laurel Heights, LLC. Appraisers Robert Shold and Charley Hough represented the Assessor's office and were sworn in by Chairman Marlow. The property under appeal consists of a low-income housing development known as Laurel Heights located at 2002 McClellan Street, Port Townsend. On the petition form the appellant stated: "This is a low-income housing project subject to government restrictions. It should be valued based upon proper consideration of the impact of those restrictions. The capitalization rate should be higher than that for conventional properties to reflect the increased risk relating to government control of many of the owner's traditional ownership rights. The Washington Court of Appeals has ruled that these restriction must be considered in the valuation process. Actual, not market, income must be used for valuation. The rental income shown on the operating statement reflects the maximum rents the project can charge as of the assessment date pursuant to its governmental regulatory agreements. Tax credits and interest subsidies, if any, should be ignored as intangibles or financing provisions that are not part of the real property valuation under Washington law." Letters and additional documentation was provided as evidence with this appeal. The current valuation and the appellant's estimate of value for each parcel is as follows: Assessor s Assessor s Assessor s APtellant s Appellant s APtellant s Land Improvement Total and Imlrovement otal Parcel No. Value Value Value Estimate stimate Estimate 966 700 00 I $50,435 $136,015 $186,450 $50,435 $53,135 $103,570 966 700 002 $60,755 SI13,715 $174,470 $60,000 $43,570 $103,570 966 700 003 $90,480 $333,100 $423,580 $60,000 $43,570 $103,570 966 700 004 $90,480 5333,100 $423,580 $60,000 $43,570 $103,570 966 700 005 $91,955 5303,130 $395,085 $60,000 $43,570 $103,570 966 700 006 $91,955 5333,100 $425,055 $60,000 $43,570 $103,570 966 700 007 $91,955 S333,100 $425,055 $60,000 $43,570 $103,570 966700 008 $91,955 S303,130 $395,085 $60,000 $43,570 $103,570 966 700 009 $91,960 S333,100 $425,060 $60,000 $43,570 $103,570 966700010 $91,960 S339,030 $430,990 $60,000 $43,570 $103,570 966700011 $90,480 S333,100 $423,580 $60,000 $43,570 $103,570 966700012 $90,480 S303,130 $393,610 $60,000 $43,570 $103,570 966 700 013 $90,480 S333,100 $423,580 $60,000 $43,570 $103,570 966700014 $90,480 S303,130 $393,610 $60,000 $43,570 $103,570 Board of Equalization Minutes - November 21, 2005 Paj;(e: 4 Mr. Shold explained that this is a newly constructed housing project that is made up primarily of four-plex units that were built on separate parcels. Typically, these types of housing projects are situated on a single parcel. At the time this property was valued there was no indication that these units could not be sold separately. It is Mr. Shold's understanding now, that they are subsidized housing units. Charley Hough stated that he spoke with the office manager when he inspected the property in May 2005. At that time he took photographs of each building and confirmed the drawings were accurate. He noted that it is a nice development with lawns and sidewalks. Mr. Shold noted that there were minor adjustments made to reduce the value for things such as vegetation buffers, etc. But, there were no adjustments made for the subsidized aspect of this property. He added that this development is very nicely done. After reviewing all the information submitted and hearing the testimony of the Assessor's representative, Chairman Marlow closed the hearing. The Board will conduct a physical inspection of the property and make a determination at a later date. Meeting adjourned. Attest: /l U&~ -I!. . ,~,Jtlh d.. . Enn K. Lundgren, Clerk ;r:JeB;;~ JEFFERSON COUNTY BOARD OF EQUALIZATION ? William S. MaJ;low, Chairman ~~jjt\UL~;~ Richard A. Broders, Vice-Chairman - C~6./ft :tf Irs A. DeLeo, Member