Saturday, June 12, 2021

How "affordable housing" infects your property taxes

 https://caribbeantimesnyc.com/wp-content/uploads/2021/05/Housing-versus-Homeowner-696x522.png  

Carribean Times

Recently, as I was walking back from petitioning, I approached a homeowner. I introduced myself and made my pitch. She looked at me and said, “Why should I help you? – What are you going to do about THAT?” – pointing to a new 6 story building right next to her house. Her house is a sprawling corner lot, with a handsome wood-frame home. She looked at me sternly as I tried to answer and asked, “How are you going to stop that?” I politely responded, “we cannot”.

Obviously, she was not happy with my response. I don’t blame her to be honest. Nonetheless, it is the truth, as much as it pains me to say so. However, her concerns reveal a much deeper and bigger issue in our community about “housing”. What does that mean? The answer depends on who you ask. For some, housing means being able to afford rent for an apartment in a reasonably safe neighborhood. For others, housing means being able to hold on to the house you purchased. How does one reconcile the two? 

The term “affordable housing” is actually a misnomer, a proverbial urban myth.  It cost the same amount of money to build an “affordable apartment” versus a “market rate” apartment. The difference is how property tax is applied. Ironically, when we ask for “affordable housing” in our community, we are making homeownership less affordable. “Subsidized housing” is a better term because through the 421-A, a state property tax abatement, homeowners are offsetting property tax for developers. New apartment buildings in our community DO NOT PAY property tax. Instead, our appraised property value increases to make up for the “subsidy” used to help finance those new buildings. This is important for homeowners to know, as we explore why our community is changing so rapidly and becoming less affordable.

Homeowners with large wood frame houses are in danger. As property tax becomes higher, it is harder and harder to afford maintaining these large houses. You need to invest at least 5 to 8 thousand dollars per year to maintain your home. If you are not spending on maintenance, you are likely not keeping up the “value” of your home (which is different than the value of your land).

When your home falls into disrepair, over time, the land your house sits on becomes more valuable than the house itself. The reason is simple. If your home is in disrepair, it is less likely to be purchased by another family or “end-user” because the cost of buying and repairing the home in disrepair is usually beyond the means of first-time home buyers, and banks will not offer loans to purchase a home that “won’t appraise”. This simply means, a bank will not provide a borrower a loan to pay more than what a “house in disrepair” is worth. This makes it much more likely those houses will be purchased by DEVELOPERS!

14 comments:

Anonymous said...

This is the biggest pile of shit. If a person wants to buy a house and fix it up over time, then it should be allowed. I can see if the houses structure is unsound but if it's just a few broken floorboards and a few windows need to be replaced, and possibly it has no working pipes or water or whatever it is, the house should be allowed to be sold to an average person. I have seen houses that where the structure was fine and the house could have been sold to a normal person but then overseas developers and house flippers are allowed to still buy the home and knock it down and put some crap in that space. Most houses that are built these days, dont even have driveways or front yards anymore. And they put these huge conglomerate of a house with NO drive way and 5 families move into this "two family house". There isn't any parking left on the streets even. Then the government complains that there is a "housing shortage" and Americans are now "priced out" but yet we STILL allow foreign home investors and developers into OUR market. If there is a "housing shortage" then why do we allow investors? I dont even agree with American house flippers even. I think if a market has a "housing shortage" then you should implement laws that has NO LOOPHOLES and let us catch up with the "shortage of housing". Stop allowing foreign investors into the American housing market when there is a "shortage". I also think they should implement buying power and limit everyone to owning only 2 houses per family. No more of this house flipping shit. Start allowing AMERICANS to buy AMERICAN property. Also, you know that this housing flipping shit is locking "minorities" out of the housing market? It has been proven over the years that property gives people wealth. Since most housing practices were unfairly aimed at "minorities" back in the day, you dont have home wealth among the younger minorities. It is getting better but now when you have a housing market where nobody (not even white youngsters) can afford a house in America, then you know YOUR LAWS are the ones that are the TRUE problem to the wealth gap among young people and older generations and between "minority" people and white people. The government will NEVER admit this and now the government is selling ALL OF US out (including younger white people).

Anonymous said...

"Queens is the future" Doesn't look promising for homeowners/middle class looking for their slice of the dream. NYC should be a the paradigm as to what not to permit happen anywhere else.

Snake Plissskin said...

reformatted so its readable - still rambling but some very good points here)

This is the biggest pile of shit.

If a person wants to buy a house and fix it up over time, then it should be allowed. I can see if the houses structure is unsound but if it's just a few broken floorboards and a few windows need to be replaced, and possibly it has no working pipes or water or whatever it is, the house should be allowed to be sold to an average person.

I have seen houses that where the structure was fine and the house could have been sold to a normal person but then overseas developers and house flippers are allowed to still buy the home and knock it down and put some crap in that space.

Most houses that are built these days, dont even have driveways or front yards anymore. And they put these huge conglomerate of a house with NO drive way and 5 families move into this "two family house". There isn't any parking left on the streets even.

Then the government complains that there is a "housing shortage" and Americans are now "priced out" but yet we STILL allow foreign home investors and developers into OUR market. If there is a "housing shortage" then why do we allow investors? I dont even agree with American house flippers even.

I think if a market has a "housing shortage" then you should implement laws that has NO LOOPHOLES and let us catch up with the "shortage of housing". Stop allowing foreign investors into the American housing market when there is a "shortage".

I also think they should implement buying power and limit everyone to owning only 2 houses per family. No more of this house flipping shit.

Start allowing AMERICANS to buy AMERICAN property.

Also, you know that this housing flipping shit is locking "minorities" out of the housing market? It has been proven over the years that property gives people wealth. Since most housing practices were unfairly aimed at "minorities" back in the day, you dont have home wealth among the younger minorities.

It is getting better but now when you have a housing market where nobody (not even white youngsters) can afford a house in America, then you know YOUR LAWS are the ones that are the TRUE problem to the wealth gap among young people and older generations and between "minority" people and white people.

The government will NEVER admit this and now the government is selling ALL OF US out (including younger white people).

****

What our friend does not understand is that these laws are passed by the Democratic Party who has one goal - building the Democratic Party.

The Party is dying - demographics from natural-born citizens are deeply trending against it and the only way they can stay in business (and that is basically what it is) is to import and mint new citizens.

The destruction of communities, as outlined here, is merely collateral damage as the Party's real leadership lives in, like their compatriots in wealthy enclaves, as in Latin America and other locations in the world.

Anonymous said...

Snake Plissskin, where do you get all the bullshit you spew out. None of what you said has anything to do with the destruction of communities. That crap started decades ago with the selling out of our jobs to oversea so that CEO's and stake holders could make billions and not pay taxes on any of that. Then there is all the money that has flooded into our elections to buy your own personal politicians, no matter the party affiliation. YOU Snake are part of the problem by pitting regular people against regular people as opposed to big companies not paying taxes, paying their workers very little, CEO's making billions. This is exactly what they want you to do Snake. You are being a pawn for them, so no one looks in their direction for how they have fucked up this once great country, where the middle class could buy a modest home.

Anonymous said...

I live in one of these large wood frame house neighborhoods. My neighbors are all immigrants with large families who pooled resources to buy these old charmers which are great for raising families in and getting to know your neighbors. These are the kind of hoods the city needs!

Anonymous said...

Law abiding middle class citizens who never hurt anyone get the shaft.

Rob in Manhattan said...

A lot of the problem stems from the illusion that “property rights” – are sacrosanct. Try not paying your taxes, mortgage or any liens against that house. Watch how the machinery of seizure and eviction goes into motion.

Another illusion was that one can have a completely suburban or exurban lifestyle while enjoying a short commute and the cultural value of the central city and remain immune from urban sprawl.

.If you are going to charge upwards of three-quarters of a million dollars for a stick house that can, at best house one or two families….. don’t be shocked that the most likely buyer has other plans.

Several people have suggested that these homes should only be sold to individuals and their families to actually live in. How exactly are you going to accomplish this without running into cries of “free market” and “property rights”. Try proposing that to someone who worked 20-30 years of bosslicking to own that house and now believes it will make him “rich”. If you are truly interested in preserving the current character of your neighbored vs, cashing out and leaving, it is up to -you- to carefully choose who buys your property. Be careful also to not run afoul of equal housing laws.

My partners and I have business in 4 locations in Queens, One goes back to early in the year 1990. I travel extensively out there. While there have been a few small-scale apartment developments (compared to Manhattan & L.I.C.) all the areas I visit have remained remarkably unchanged.

The only real changes are the age and racial demographics, which in most cases have trended positive.

Rob in Manhattan

Snake Plissskin said...

I live in one of these large wood-frame house neighborhoods. My neighbors are all immigrants with large families who pooled resources to buy these old charmers which are great for raising families in and getting to know your neighbors. These are the kind of hoods the city needs!
************************************8
Yes, sounds like a white Leftest reading from a script. I was at the barricades, and have walked this city, well before you were born. I know more immigrants than you know people. A grandson of immigrants that lived a sh*t existence. What happens in those neighborhoods is a crime. Stop acting out and listening to what you are told and accept the world for what it is. Think. Then you can help.

Look at that joke 'President' - a far cry from Roosevelt or Kennedy. The Democrats and Socialists are both in their death throes. We are getting rid of their stinking corpse.

Anonymous said...

So in the end it is all YOUR fault jerk. Get with the program and move your family into one of those shabbily built concrete bunkers they are using your tax money to build. Stop crying about parking because we are eliminating cars next week. Stop crying about your lawn and garden because that is probably racist. Other places manage to stay livable, but you take what we give you in progressive town!

Anonymous said...

@Rob in Manhattan I agree with you on this one. Small-scale apartment developments that are built in zones that can handle the increase in population. Think six family units with one and two bedrooms three stories high with a few parking spots. For Working People !!!

Beware said...

Aaron Carr & his housing rights initiative want to take your home away from you.

Anonymous said...

I’m gonna be 80. My kids have houses. I’m donating my home to a not for profit org with the legal proviso inserted in the deed of transfer, that I live here til I leave the earth.
FUCK YOU NYC DEPT OF FINANCE. Now you get BUPKAS!

Snake Plissskin said...

So in the end it is all YOUR fault jerk. Get with the program and move your family into one of those shabbily built concrete bunkers they are using your tax money to build. Stop crying about parking because we are eliminating cars next week. Stop crying about your lawn and garden because that is probably racist. Other places manage to stay livable, but you take what we give you in progressive town!
---------------------------------------
Can't wait. When this country stops coddling your kiddie BS you will learn a lesson you will never forget: as they used to say when I was a stupid young jerk like you 'sit down, shut up, or you will get clobbered so hard your back teeth will rattle.' I laughed. I found out and you are about to, too.

Adults have a very clear line you do not cross with them. You will have the shock of growing up real soon. You can take that to the bank punk! Remember you were warned. You have no idea what is coming down the pike, and mommy and daddy will not be there.

Anonymous said...

The impossible has happened: I actually agree with Rob in Manhattan on this.