1. Welcome to AppraisersForum.com, the premiere online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Is this a special assessment?

Discussion in 'Urgent - Help Needed' started by Scott R Marshall, Sep 22, 2011.

Thread Status:
Not open for further replies.
  1. Scott R Marshall

    Scott R Marshall Senior Member

    0
    Dec 14, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    Okay, forgive my ignorance on the subject but this is the first time I've come across this scenario. About 5 or so years ago the local municipality began to charge impact fees to builders looking to build new homes. The original reasons given were the builders were not honoring their commitments to put in things like parks, walking trails, etc within the neighborhoods they were building and the local government said they were taking over the responsibilty by charging what were coined in the local area as "impact fees". And they are not minimal fees but in the tune of $10's of thousands of dollars per HOME. Well then comes the destruction of the housing industry and an almost dead silence in doing appraisals on new construction so I never really worried to much about it.

    Fast forward to today and I'm appraising a purchase on a new home. In doing my research I begin to notice a phrase prevalent in the MLS and also within the subdivision regarding something known as PID. Based on the research I have done so far it appears this stands for Public Improvement District but I am still trying to find out if that is correct. Some builders are marketing that there are no PID's associated with their homes however some of the homes have these fees. I attempted to get the information from the builders representative but they were somewhat ignorant as well regarding what it all entails but based on this conversation, the PID fee for my subject, and all homes built by this particular builder, is $120 per month for the NEXT 30 YEARS and is supposedly secured by the selling of city bonds. This fee is supposedly added to the yearly real estate taxes for each property that is affected by them. I have also noticed within the MLS database that these PID fees vary from builder to builder and I am assuming it may have something to do with either the total acreage of the land being developed and/or the total number of sites.

    I have a phone call out to the office which handles these fees to try to get a bit more information but it appears that the builders have passed along these impact fees to the buyers, with the local municipality allowing the builders to avoid paying the full fee upfront, thereby keeping the initial cost of buying a new home "down".

    So my question is "Is this a special assessment"? If it is, is it for the total amount or for just the next 12 months? I'm sure I'll have a few more questions as I get guidance and information both from the local municipality and from my fellow peers but I'll end my initial inquiries here.
     
    Last edited: Sep 22, 2011
  2. CANative

    CANative Elite Member

    67
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Start interviewing the real estate agents and brokers who work in that neighborhood. Also interview staff at the assessor's office. Interview, interview and interview until you are confident that you understand the situation.

    Certainly sounds like a special assessment.
     
  3. Don Clark

    Don Clark Elite Member

    3
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia
    Unless an assessment affects all properties equally in a tax district(City or County), and only affects a few or certain properties for a specific reason, it is a special assessment.
     
  4. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    145
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    We can have special districts and one or two towns started "impact fees" usually a flat $5000 or so... Your's sounds a heckofalot higher...stringing it out over such a lot time is crazy. In our area, they simply were added to the lot price so builders went into a small town nearby and built like mad. They thought they were being "smart" but in fact created such a glut of unwanted homes, that they would have been better off to just pay the &^%$ thing and go on...
     
  5. Jo Ann Meyer Stratton

    Jo Ann Meyer Stratton Elite Member

    18
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    How is it paid? Is it part of the property tax bill once a year? Is it paid directly to the city or county that governs the special district? Is it paid to a private entity? If not included in the property tax bill it needs to be reported at the top of the URAR so the lender knows there is another lien out there that could take precedence over their mortgage. Then the usual---explain, explain, explain and then explain some more.
     
  6. miktay

    miktay Junior Member
    Supporting Member

    17
    Jul 3, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas

    That reminds me of the episode where Lucy asked Ricky about Special Assessments and he said to her "Lucy, you've got some 'splainin to do"....

    (sorry- it's a slow afternoon)
     
  7. CANative

    CANative Elite Member

    67
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    From the original post...

     
  8. JamesRockford

    JamesRockford Senior Member

    0
    Oct 22, 2010
    Professional Status:
    Certified General Appraiser
    State:
    California
    I can't imagine why anyone would buy a house in a development in Albuquerque with $120/month tacked on FOREVER unless you are talking about including golf or country club membership being included.

    Certainly not $120/mo. just for some little park area and swimming pool.
     
  9. CANative

    CANative Elite Member

    67
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    The City of Lathrop near Stockton has high Melo Roos requirements. It's reflected in the sale prices of those properties which are affected.
     
  10. USPAP Compliant

    USPAP Compliant Elite Member

    2
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Not an answer just a memory.

    Around 1962 we got curb and gutter on my street!!!!! 50% of the owners on a street had to petition for concrete curb & gutter and is quite the status symbol.

    I remember it cost $7.00 per month for I think 5 years......and it was added to our city electric/water/sewer bill.

    It was called a "special assessment" as it only applied to the streets that petitioned the curb & gutter.


    In 1962 the federal minimum hourly wage was $1.15. That was a huge increase from the late 1955 when $00.75 was the norm. The FMW was $1.00per hour in 1960.

    http://www.infoplease.com/ipa/A0774473.html


    http://www.nclabor.com/wh/fact sheets/minimum_wage_rate_history_072407.pdf


    Special assessments also apply when a legal HOA charges a special assessment to clean out the lake, pave the streets, build an entrance, install electric gates....etc. It could be for major expenses in a condo project for swimming pool/tennis courts/clubhouse remodeling, all new roofs, new exterior siding or windows. I have seen it done for all of the above.
     
Thread Status:
Not open for further replies.

Share This Page