Assessed Value Of Storm Water Management Ponds

[Mark K]

She doesn't want her name or the subdivision name to appear in Sheriff's Sale notices in the paper.

She can incorporate the land with some bogus name, say the HRC Global Initiative HOA, and then let it go to tax sale.

 

[Gobears81]

IMO, the retention areas have value and I've seen a few sell, but mostly to local municipalities.

The detention ponds do have value, just not for its own standalone use. If the lots have a market value of $40,000 each if adjoining a residential view, but $60,000 if adjoining a pond, said pond value is manifested in the value of the adjoining properties. Not to mention the drainage improvements for the entire subdivision being manifested by even the $40,000 lots versus a lot value with inadequate drainage. What is the highest and best use of the detention pond? For assessment purposes, if you are assessing the land for the residential lots near 100% of their value AND are assessing the detention pond, there is a fundamental flaw in logic.

 

[JTip]

they were a necessary expense of land toward the permitting of the entire development.

....just in case you missed it...

 

[Gobears81]

....just in case you missed it...

I didn't miss it and I don't disagree with it either. Say a subdivision has 40-acres to start, but after roadways, commons areas, etc., 30-acres are remaining for residential lots. The other 10-acres certainly have costs, but all of the value of the subdivision is found in the 30-acres of residential lots. If the average lot value is $50,000 and there are 120-lots, there is no reason for the (land only) assessment base to be more than $6,000,000, and perhaps it would be less, depending on how the unsold residential lots are classified for assessment purposes. Assessing them at $6,000,000 plus assessing the commons area is fundamentally off as the developer does not even see that much in lot sales.

 

[DREA Dean]

I didn't miss it and I don't disagree with it either. Say a subdivision has 40-acres to start, but after roadways, commons areas, etc., 30-acres are remaining for residential lots. The other 10-acres certainly have costs, but all of the value of the subdivision is found in the 30-acres of residential lots.

Exactly. The benefit of having the common area elements (streets, sidewalks, utilities, storm drainage system, walking trails, etc.) is incorporated into the lots. The assessed values of the lots should represent this. But the common area elements have no market value on their own.

 

[DREA Dean]

She can incorporate the land with some bogus name, say the HRC Global Initiative HOA, and then let it go to tax sale.

I thought of that, too, and will mention it to her. Thanks.

 

[JTip]

I looked at a couple in my area off the top of my head. Both are owned by the township, in subdivisions, and are assessed at market value (compared to neighboring improved parcels, less credit for no w/s).

 

[Mr Rex]

What if someone bought them and held the adjacent homeowners for ransom by blocking the inflow to the ponds? I'd bet the adjacent landowners would think they were quite valuable.

 

[DREA Dean]

I looked at a couple in my area off the top of my head. Both are owned by the township, in subdivisions, and are assessed at market value (compared to neighboring improved parcels, less credit for no w/s).

Yeah, that's the case in most of the ones I looked up, as well. But being owned by the township or borough or city means they are tax-exempt, so the "owners" doesn't care how high the assessed value is. That's why the one I'm looking at is so unusual.

 

[Meandering]

A
The good news is if they have separate tax parcels.
See if the developer can donate the retention ponds to the municipality, until such time as the municipality gets around to improving the public storm water drainage system in the area.

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