ZacharyPatterson.com

Less than 20 km from downtown Peterborough and 4 km from downtown Lakefield, this semi-attached house on two levels boasts a newly renovated kitchen, brand new carpet throughout, and updated master bathroom. Walls have been insulated for energy efficiency. Lower level bathroom updated with shower.

Read more and see pictures.

For RENT:

1245 13th Street, NW #607

APPLICATION IN REVIEW!

[EDIT] RENTED!

JUST SOLD: 4810 Sheriff Road, NE, a two story.

Investors, this home sold for 45,000.

Unfortunately, DC in true form has taxed the owners of 4806 and 4808 Sheriff Rd into oblivion. Over the past years the taxes owed on 4806 Sheriff Road have risen to over 30,000. Perhaps in several years after DC has acquired this property one could buy it and continue to develop this neighborhood.

HEARING SCHEDULED for WEDNESDAY, JANAURY 27 at 2PM (both bills below)

B18-448, “Blighted Properties Abatement Reform Act of 2009.”

Bill 18-448 Introduced by Evans, M. Brown & Wells — referred to Public Services (Bowser) and then Finance (Evans) To provide for the abatement of blighted improved real properties; to provide for the abatement of nuisances in the District of Columbia by the Commissioners of said District, and for other purposes, to define blighted improved real property; to repeal the requirement of registration of vacant buildings; to amend Title 47 of the District of Columbia Official Code to revise the real property tax rate for Class 3 properties; and to restate the classes of property subject to taxation. This legislation was introduced to clean up and address technical changes to the Class 3 blighted legislative language that ultimately passed in the Budget Support Act, September 22.

• Also in the bill, an owner of a property that does not register it with DCRA within 30 days of it becoming vacant will be subject to a penalty of up to a $25,000 fine and/or 90 days in jail.
• Broader criteria for blighted status
• Eliminates many exemptions, such as offering property for sale, or inheriting property, or relief during redevelopment.

B18-546, “Neighborhood Preservation Amendment Act of 2009”.

Bill 18-546 Introduced by Mendelson, Bowser, Barry, Thomas, Catania, Graham, Brown — referred to Public Services Councilmember Bowser, Mendelson and others have introduced legislation that would mandate “vacant” property owners register with the District (for a fee) or risk being classified as “blighted” and subject to the Class 3 — $10 per $100 tax rate.
Other pieces of the legislation would provide for a definition of vacant blighted building, to amend the service of notice or process, to amend the requirements for registration of vacant buildings, to amend the registration fees, to require minimum insurance coverage policies for vacant buildings, to amend building and property standards maintenance standards of vacant buildings, to require the posting on the vacant building of owner and authorized agent contact information; to amend the Housing Code to clarify the issuance of citations; and to amend the Civil Infractions rules to clarify the fines issued for violations of the vacant property registration and building maintenance standards.

Topics to consider

• Implicit in the 4th Amendment to the Constitution is the right to privacy. Whether or not one chooses to occupy, rent, or sell one’s property is a personal matter.
• The 8th Amendment protects us against unnecessary fines and penalties.
• Bills currently under consideration would eliminate the exemptions that are available under current law, such as construction, marketing the property for sale or rent, etc.

Register to testify at the public hearing. Download the notice of hearing here

Several area real estate attorneys, investors, lenders, and employees from 941 North Capitol Street convened at the new and fabulous DC Bar location at 1101 K Street, N.W., to hear real estate law expert and prominent lobbyist Roy Kaufman, of counsel with Jackson & Campbell speak about the new “Blighted” Property Tax that is about to hit our great city.

Nicholas Majett, Deputy Director, Inspections and Compliance within the Department of Consumer and Regulatory Affairs heralded the acheivements of the vacant property tax over the recent years, as certain organizations such as churches who had received several vacant properties as donations were hit with 5% property tax bills and were motivated to go into the rehab rental business.

Mark G. Griffin, another D.C. lawyer from Griffin and Murphy LLP spoke at length to the nature of probate practice and how clients will be affected by the new laws coming into place.

The following will summarize the current regulations as they were presented by Mr. Kaufman. A subsequent post will show the new proposed bills.

Current Law

The theme in general in the current law is the same as that we have dealt with since 2005 when the vacant property laws began to be enforced. While perhaps there are some extreme examples of the vacant property tax motivating certain people to renovate and rent or sell their property, the unintended consequence was the unnecessary punishment of common people in a down market.

Pursuant to the 2010 Budget Support Act, which established the definition of “blighted” property, which is “unsafe, insanitary, or otherwise threatens public health, safety, or general welfare of community”. Any property that meets this description will be taxed at a rate of 10% of the assessed value per year, which is the same rate as for vacant property in 2009. Residential property in the city is generally taxed at 0.85% of assessed value and commercial property is roughly twice as much as residential. As an example, an owner of a property assessed at $700,000 who would normally receive a property tax bill in the amount of $2,975 will instead receive a bill in the amount of $35,000 if his/her property is deemed “blighted” by DCRA.

It was Mr. Kaufman’s contention that under the current law, residential property which is vacant but does not meet the blighted standard will be taxed at the commercial tax rate. All vacant properties are still to be registered with DCRA, boarded and deteriorating down or not.

Nearly every condominium advertisement that you may read today will advertise 3.5% down payments and attractive interest rates, for FHA insured loans.  These wage-earner loans form the backbone of this market, and for any new construction project in recent memory, meeting the requirements for FHA were a must.

With news [Washington Post], however, that the FNMA is now requesting $15B in assistance from the U.S. Treasury, this market might be headed for another more serious decline in the event we must return to the days of putting $80K down to buy that $630/square foot condo.

On the side of securitizing loans, the constant theme in the current debate is enforcing the so-called “skin-in-the-game” rule in which the mortgage originator will be forced to retain a certain percentage of the loan’s face value on its books. How they’ll get around this risk increase with increased fees and loan points obviously remains to be seen.

Here in D.C., Fannie Mae picked up 19 properties in November, 2009 (by bidding on their own foreclosure auctions on assigned defaulted loans or picking them up from foreclosing banks that filed claims with FNMA on their insured loans). They are:

0828 51ST ST NE
5521 7TH ST NW
4619 KANE PL NE
5521 7TH ST NW
2141 P ST NW UNIT #305
0111 P ST NW
1328 MARYLAND AV UNIT #1
5821 4TH STREET, NE
4516 DIX STREET, NE
0601 JEFFERSON ST NW
3016 5TH ST SE
1425 4TH STREET, SW, UNIT #A316
1213 FLORIDA AV NE
2817 26TH ST NE
5113 JUST ST NE
1838 M ST NE
0773 KENNEDY ST NE
1618 17TH ST SE
0809 DELAFIELD PL NW

Not surprising.  What is surprising is that they only unloaded 4 properties in November 2009, two appearing on the list above, and the other two acquired in June of 2008 and August of 2007, meaning a net gain of 15 properties for the month of November.