Predatory Lenders Assessments . . .
Predatory Taxes on Plummeting Values
The city is spending about $2 million on a contract to Amherst-based GAR Associates to re-assess the entire city. And the state is reimbursing the city about $2 million for the re-assessment effort.
The problem . . . GAR assessments of houses selluing under $50,000 in scores of declining neighbor-hoods AREN’T EVEN CLOSE. The most dramatic evidence of GAR’s inaccuracy is in neighborhoods where controversial Houston investor Scott Wizig (NY Liberty Homes) bought his nearly 300 house for an average of under $3,000 each. Last December he successfully appealed assessments on all his purchases., lowering average GAR assessments of $25,000 to under $5,000. He pays less than $100 Annual City & county taxes on most of his houses as his maintenance of them has been scandalous. But Wizig dramatically proved how over-assessed GAR’s numbers are in poor neighborhoods.
A short W. Side street illustrates the problem. Arnold St. is 1 block north of Ferry, running east from Grant):
ARNOLD sales since December 1998:
| Address | Prop. Cl | Gar AV / Old AV | Sale Pr.(date) | % SP/Gar V |
| 13 Arnold St. | 2 fam | $31200 $50400 | $10000 (3/10/0) warranty deed | 32% |
| 18 Arnold St. | 2 fam | $33500 $33500 | $16565 (5/3/1) forecl. | NA |
| 25 Arnold St. | mult.dwel. | $41000 $69300 | $ 2000 (11/3/098) tax sale | 05% |
| 28 Arnold St. | 1 fam | $18000 $31800 | $ 1000 (12/4/98) from HUD | 06% |
| WIZIG 30 Arnold St. | 2 fam | $ 3500 $39000 | $ 2200 (7/26/1) tax sale | 63% |
| 39 Arnold St. | mult.dwel. | $27000 $77000 | $8000 (4/2/99) warranty deed | 30% |
| 41 Arnold St. | 1 fam | $24000 $30000 | $4500 (4/29/99) from Key Bank | 19% |
| 61 Arnold St. | 2 fam | $35100 $47000 | $25000 (3/7/1) warranty deed | 71% |
| 75 Arnold St. | 2 fam | $35700 $64000 | $18500 (7/13/0 warranty deed | 52% |
| 81 Arnold St. | 2 fam | $15000 $63000 | $ 3500 (5/15/0) tax sale | 23% |
| 82 Arnold St. | 2 fam | $12000 $35000 | $ 1 (11/15/0) to city | NA |
TOTALS 9 sales Averages: $25109/$49500 $8300 Aver/ Sale Pr. to GAR Val. 34%
Sales on Arnold back to Jan. 97 show the same problem (#5:12/97,$1000; #116/98,$1000; #25: 11/97,$9000; #28:1/98, $3000; #35:7/97, $2501; #48:10/98,$25000; #76:6/97,$2501; #77,7/97,$10000; #78:6/97,$2501; #82:11/98,$7000 . . .AVERAGE SALE $6,200)
The best sale on Arnold since 1997 (nearly 5 years) is $25,000, yet GAR assessed 34 of 46 Arnold parcels (74%) at $25,000 to $44,400. Indeed, 25 Arnold, a multiple dwelling assessed $41,000 is awaiting demolition (making its net value a MINUS $5,000 demo cost!).
Wizig’s double (#30, with a solid garage, paid $2,200, assessed $3,500) is in much better shape) than boarded-up 28 Arnold next door (paid $1,000, assessed $18,000). Indeed Wizig’s house+garage is assessed less than a vacant lot (#76, assessed $3,800) on the next block. Opposite Wizig’s house is a weed-choked lot, unlikely to sell for $200, but assessed by GAR at $3,300, OVER 10X ITS LACK OF ANY VALUE WHATSOEVER.
The average Arnold sale since 1/97 is $7,195, a mere 28% of average new GAR assessments of $25,845. GAR’s assessed value of 2 block-long Arnold is $1.19 million. Its real value is closer to $331,000. Every neighborhood where Wizig drastically reduced assessment shows the same problem.
Tragically, few are watching 1,000’s of homeowners losing life saving in their homes as the city taxes lack of value. The myth of low taxes is a cruel hoax. Loss of several thousands of equity annually, as taxpayers pay GAR millions to hide the problem is an outrage . . . while the city is reimbursed by NYS to create false numbers. It looks like consumer fraud similar to the predator real estate scams in these very same neighborhoods . . .as HUD & city housing officials are utterly silent.
COMING . . . Vacant lots: REAL LACK OF VALUE
Richard Kern, MSW, 882-2388, Oct 11 , 01
WEBSITE: www.kernwatch.com email: Kernwatch@AOL.com
