Thomas MacMillan Photo
NeighborWorks’ Seila Mosquera questioned the tax man’s math.
If an organization is collecting less rent by offering subsidized housing to poor people, should it pay less in property taxes?
Yes.
At least, that’s how the Board of Aldermen answered the question Tuesday night.
The question was posed in the form of two items on the agenda at the board’s regular meeting. The items proposed changes to the way the city assesses taxes for properties owned by the YMCA on Howe Street and NeighborWorks New Horizons, a housing agency.
Aldermen voted to approve the two proposals. As a result, the two organizations will pay lower taxes than they otherwise would have, in recognition of the public service they provide.
The YMCA item sailed through; the NeighborWorks matter prompted a small debate. Some aldermen had wondered if it should be held up for further study, because the city assessor’s office had released confusing numbers on the deal.
Alderman Perez.
Hill Alderman Jorge Perez, chairman of the Legislation Committee, introduced the items to the board, starting with the YMCA.
The city normally calculates assessments based on the fair market value, he said. But the state legislature passed a law that assessments can be calculated using actual rents, Perez said. That’s what the Y is looking to do, he said.
The YMCA operates 80 Section 8 apartments and an additional 13 supportive housing units through the Housing Authority of New Haven.
The proposal also included a change to a Payment In Lieu Of Taxes agreement between the YMCA and the city, in which the Y would increase its payment, but still would not pay as much as it otherwise might have to.
The deal would allow the Y to do a $12 million renovation project, most of which is being paid for with tax credits, along with a grant that has to be spent this year, Perez said.
The proposal passed unanimously.
Perez then moved onto the NeighborWorks item. “This request is similar,” he said. It’s complicated by the fact that the application, when it was in committee, didn’t have some key figures. The city assessor’s office later provided one important estimate: The city would lose $206,000 in tax revenue if the proposal goes through, Perez said.
“There’s a problem with that number,” he said. It’s higher than the total that NeighborWorks paid in taxes last year.
He later said he doesn’t know the actual dollar amount of tax revenue the city would give up.
NeighborWorks Executive Director Seila Mosquera before the meeting put the figure at $70,000. The organization now pays about $167,000 in property taxes and is asking to pay about $94,000.
The tax agreement would apply to 119 apartments with 35 separate addresses at five developments.
Mosquera said the deal is necessary for her organization, which sometimes has to choose between paying taxes and making repairs on its properties, she said.
“We do want to pay taxes,” she said.
During the meeting, Perez made a personal plea for support of the deal with NeighborWorks. “There’s a period when my family lived in Section 8,” he said. “There’s a period when I walking around with holes in my shoes.”
“This is a valuable entity and needs our assistance,” he said.
Alderwoman Maureen O’Sullivan-Best voted no.
Fair Haven Alderwoman Maureen O’Sullivan-Best later sounded a note of caution. “If we continue adding properties to the list of non-taxable property, it puts an ever-increasing burden on the middle class.”
None of NeighborWorks’ property is non-taxable, Perez responded. NeighborWorks will still pay taxes, he stressed.
The NeighborWorks deal passed with 23 “yes” votes, a “no” from O’Sullivan-Best, and a pass from Alderman Carl Goldfield.
Is Maureen the only one with the guts to say enough? Granted there is the need, but how much more can the homeowners pay before there is a taxpayers revolt? Where do the Mayoral Candidates stand on this issue?