No Wonder We Have Slumlords
A brief aside…
It was brought to our attention over the weekend that one of the reasons a neighborhood, say Fairmount in this case, that’s being reborn has such a hard time dislodging long-time slumlords is because the appraised value of their property is ridiculously low. We’re not talking about the home/duplex/whatever on the property – just the land itself.
We’ve noticed that, in Fairmount to continue the example, your average nicely kept/restored home sits on land that TAD says is worth around $35,000. The slummy properties, often located directly next to the aforementioned nicely kept ones, on the same size lot? TAD says that land’s $8,000. No wonder the slumlords don’t leave – they’re paying tremendously under-valued property tax compared to the people actively improving the neighborhood.
Maybe we’re missing something in this equation, and if we are, we will be happy to be corrected. At first glance, though, it appears that it pays to be a slumlord in Fort Worth.
Actually, many of the lots north of Allen are valued at $8,000. Somewhere south of the 1400 blocks the value goes up to $30K, regardless if the home is owner occupied. I am not sure, but assume the land value is kept low to encourage development, in this case along and around Magnolia.
The value of the structure on a square foot basis is a big problem (minus the land value). Many are valued at under $20 a square foot while the average is around $65. For examples on the lower end, see 2740 Lipscomb ($9.68 p/sq/ft), 818 Richmond ($12.20), 1830 6th ($13.46), 1925 5th ($9.40), and the list goes on. It is no coincidence that many of the properties with very low values are not owner occupied.
Excellent point. How can we as a city or county realign the incentive structure to promote quality redevelopment and proper maintenance of properties? The challenge will be not burdening owner/occupants who have very limited financial resources.
The basic answer is enforcement of code compliance but I think you are on to something better. Perhaps Fort Worth or Tarrant County (which assesses taxes) could permit modest abatements for qualifying projects or perhaps assign a greater tax rate to the land than the improvements. Yet, perhaps someone could get an agricultural abatement if they use a lot for a community garden or other publicly beneficial use. Thoughts?
Compare the 1200 blocks of South Adams St (redeveloped by Square One a few years ago) to that of Washington Ave or Henderson and there you will see a huge disparity – and to cap that off the South Adams homes are on 1/2 lots to boot!
Houses on just my block (the 1700 block of S Adams) are valued by TAD at ridiculous ranges – $17 per sq ft to $85 per sq ft. And if you paint your house and clean it up, you can bet that your property taxes will go up the next year, as much as 50%. TAD is providing a great disincentive to improving your property. We as responsible property owners are paying the price, and Fort Worth overall is suffering as a result by having created a haven for slumlords and irresponsible homeowners.