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<br />Heron Court Cooperative (continued) <br /> <br />At the request of the City Attorney, Mr. Bland stated for the record <br />that he \'A1rked for the County Assessor for 25 years, that he retired ten <br />years ago, that he had tœ responsibil ity at one time for the apprai sal <br />of different properties and was involved in the workings of various <br />types of grievances and exemptions. <br /> <br />City Attorney Schricker asked Mr. Bland to comment regarding the 25 <br />uni ts off er ed f or exempti on . <br /> <br />Mr. Bland said that with regard to welfare exemptions, the application <br />is made annually to the Assessor's office; tœ Assessor reviews the <br />facts and sends his recommendations to Sacramento. He noted that this <br />exemption has been approved by the State Board of Equalization. <br /> <br />Mr. Schricker referred to the other aspect of the appeal, that is, the <br />overall 1 imitation on the transferabil ity of property users. He asked <br />Mr. Bland to explain the basis for the request for reduction in assessed <br />valuation. <br /> <br />Mr. Bland explained that the basis for the claim is for evaluation of $1 <br />mill ion evenly divided between land and improvements. Heron Court <br />Cooperative believes that it could afford to pay 1% of that because of <br />its limited funds, and that it has been operating at a loss because of <br />underfundi ng by H UD. <br /> <br />In repl y to further questi on i ng from the City Attorney regardi ng the <br />ability of the tenants to sell the units, Mr. Hession noted that tenants <br />have 1 imited equi ty, that they buy a membershi p and everyone pays to the <br />one mortgage, and the cost to them is determined by the size of the <br />unit. They have a certificate gi vi ng them authority to 1 ive in that <br />unit. Tœy are able to sell the unit back to the Cooperative at the <br />ori gi na 1 value plus i mpro vement s <br /> <br />Mr. Schricker stated that for determining full market value, it is <br />difficult to find something comparable and the District Assessor has to <br />take that into consideration. Heretofore the City did not take this <br />facti nt 0 cons i der at i on . <br /> <br />Mr. Hession said that HUD establishes what the rents will be; that the <br />tenants pay monthly in an amount no greater than 30% of their gross <br />income; that HUD has never set the rent sufficiently high enough for the <br />Cooperative to break even; that there are no reserves and no way to <br />build up equity, and tœre has been no appreciation in the value of <br />pro per ti es. <br /> <br />Discussion follONed regarding tœ lack of equity buildup and that <br />because of the static value of the property, there should not be an <br />increase in taxes, which would then shift the burden to someone else. <br /> <br />MINUTE BOOK NO. 47 <br />Page No. 144 <br /> <br />Bd .Equa 1. <br />6/1/87 <br />Page 3 <br />