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Posted on Sun, May 23, 2010 : 7:57 a.m.

City of Ann Arbor must be ready for Round 2 of the mortgage crisis

By Letters to the Editor

Editor’s note: The following letter was addressed to Ann Arbor Council Member Christopher Taylor. Today's Annarbor.com paper discloses the current mortgage default of Hidden Valley Apartments. This is just the beginning of the commercial crisis I've warned you about in the past.

More residential defaults and re- faults are on the way. In addition, and adding fuel to the fire of this economic dilemma is your city assessors highly inflated property values within city limits. Just try putting your home on the market for what the assessor says it is worth. Not a chance.

As this economic travesty reaches deeper into the pockets of Ann Arbor taxpayers more of them will be appealing their property valuations, resulting in further significant tax reductions. Even with State Equalized Value (SEV) caps provided by the '92 Headlee Amendment, equilibrium has been reached where it will be "profitable" for home owners to take advantage of the tax reductions and appeal offers. This will wreak havoc on your budget, and your budget Band-Aids. You and your associates are in a leadership position to act responsibly and, at least on a local basis, take necessary fiscal precautions to stave off the financially devastating tsunami heading our way. It will be up to you and your associates to act in a fiscally responsible manner to bring all costs to a bare minimum, and even then, it may not be enough to weather the coming storm.

I would hope all leadership forgets their political aspirations, power brokering, personal agendas, agency grandstanding (think DDA), and start paying attention to what these events mean to Ann Arbor's delicate economy. It's time for a reality check, not a blank taxpayer check. Frank G. Dalimonte Ann Arbor

Comments

Epengar

Mon, May 24, 2010 : 11:29 a.m.

Just out of curiosity, I looked at 6 real estate ads here on AnnArbor.com, and noted their asking price, then looked at their assessed value. All the asking prices were much higher than their assessed value, even the couple whose ads said "new lower price." I'll need to see more evidence before I believe that residential property in town is over-assessed. AAresident, the market changes every year, so it doesn't surprise me that the assessment of your property does too.

AAresident

Mon, May 24, 2010 : 7:23 a.m.

My home is assessed at above market value. But don't count on an appeal to lower your assessment. My experience was that my assessment was lowered by the appeal process, but the appeal is only good for one year. The following year, the assessor will increase your assessment as though the appeal had never occurred.

Epengar

Sun, May 23, 2010 : 11:37 p.m.

yohan, here is the web page of the City Assessor's Office: http://www.a2gov.org/government/financeadminservices/assessor/Pages/OnlineProperty.aspx From that page: "The Assessing Division establishes Assessed and Taxable Values of all taxable property within the City. To establish the Assessed Value of each real property in the City, the Assessing Division lists, inventories, inspects, analyzes sales and income data, calculates depreciated costs and appraises the value of each taxable property within the City." Mr. Dalimonte claims that the Assessor's office is valuing property higher than it actually is worth on the market, and residents can't sell their property for what it's assessed at. This would be a fairly easy claim to check, since assessed value of property is available online (see the link above).

yohan

Sun, May 23, 2010 : 1:44 p.m.

Property assessments are done by the county, not the city. Writing to Chris Taylor about property assessments is even more a waste of time than usual.

Me Next

Sun, May 23, 2010 : 9:45 a.m.

Jimmy Carter started this "stealing of homes", then Clinton with Congress became the "collection strong arm" for the unconstitutional laws which benefited private business only. Neither had personal investments, they just abused positions of trust to, behind the scenes, charge a lawful citizen with a second loan for payment of a risky loan as well as their lawful one. If you are paying 2 loans on 2 properties, only one of which will ever be yours, then the property value is raised because of the price agreed to pay for the one legitimate property. Then there was the "bait & switch (?78) where services on the loan became cost added each time the loan was sold even though the monthly payments never changed. So average person saw no embezzling. The Amortizing calculator, which no average calculator nor hand calculations can duplicate, is how the added costs are added in. It was that you had 15 days to request an itemized bill when notified by the new "Holder" of your loan. Your Tax Commissioner's Office could be exact, but I found that my over assessment was regulated by what a private lender would lend on the property, & the Local could tax a % of that. Any increase (millage - numbers behind the decimal) must have evidence of improvement for the property or the owners benefit. I got a new assessment & negotiated to allow a smaller increase for the new Sheriff's Office - but not the unnecessary new Health Clinic miles away. Then the County Supervisors take the Gross amount collected & allocate to county, schools, & other necessary services. Fair-Market Value-Lending value & The US Constitution 4th Amendment assertion of violation of "...secure...houses...". In Good Faith buying & salary the same; when taxes threaten the loss of home for no other reason than Gov confiscating "private property" (money after lawful taxes paid is private property in law). You must benefit form any demanded increase. You have the Right to know.

stunhsif

Sun, May 23, 2010 : 9:21 a.m.

Frank, I couldn't have said it any better. This is not just a problem for A2, it is a problem for the entire USA. I just pulled most of my money out of the stock market and I am sleeping better at night.