Condo Market Slide Affects Grand List

Branford’s 2014 net grand list, the economic engine of the town, has dropped to $3,487,400,800 after veterans and disability exemptions, a decrease of 0.67 percent since last year. The grand list drop was not unexpected; indeed some town officials thought it might come in lower.

“It is consistent with our expectations,” Jim Finch, the town’s financial director, said in an interview, especially since this grand list comes during a state-mandated five-year revaluation of all commercial and residential properties in town.

This year’s reval takes into account high-end beach houses hit especially hard during major storms and a serious economic slide in the housing market, especially condos. 

Property values have changed since 2009 when the last revaluation was held, in part because of major land and housing damage caused by two storms, Irene in 2011 and Sandy in 2012, and in part because of the economic downturn and the lower condo market values.

Low Condo Market Affects Grand List

Branford has one of the largest condo markets in the state. There are roughly 3,500 condos in the town, condos that vary in price. A number of condos were hit hard because of the economy and as a result the condo market has dropped considerably since the last reval five years ago.

“The current value on the condos helped to bring the grand list down,” Tax Assessor Barbara Neal said when asked about the condo market. 

Even if housing values go down that doesn’t mean the mill rate won’t go up. The town’s department heads have been asked to come in with a flat budget in order ​“to mitigate against a potential rise in the mill rate,” Neal said. The tight school board budget released last week reflected the town’s grand list decline, Schools Superintendent Hamlet Hernandez said. Translated into dollars, the grand list is down by about $1 million. 

First Selectman Jamie Cosgrove voiced concern about this year’s reval early on. He anticipated that the grand list decrease might be greater than what it has so far turned out to be.

Before it turned out that the town was in the red, he said he anticipated what would happen based on ​“what happened in other area towns, and in the market.” He also voiced concern that new FEMA regulations, particularly those affecting houses on the shoreline, ​“will start to impact values of homes.

“We have to continue to work to grow the grand list. We rely far too heavily on rising property values, particularly on the shoreline to supplement our growth. It is not sustainable. We have not had any developments adding significant value to the grand list. I want to promote that.” 

Last year’s (2013) net grand list grew by a smidgen, up about 0.70 percent. This year it went down about as much. Some towns, those with recent revaluations, saw their grand lists go farther down than Branford’s.

Neal said that based on marketable sales in today’s economy, ​“I was fearful that it might be lower. We did not do as badly as other towns in a reval year did last year,” she said.

The overall net real estate grand list decease was actually – 1.11 percent, a figure that was reduced to 0.67 percent after personal property (primarily business equipment) and motor vehicles values increased. Personal property increased by 3.88 percent and net motor vehicles increased by 2.60 percent.

Vision Holds Hearings

After Branford residents and businesses received their new tax assessments in mid-December, they had one week to appeal to Vision Government Solutions, previously known as Vision Appraisal, the town’s assessing company. In all there were 714 requests for property hearings; 52 of which were commercial or industrial properties. 

Vision representatives held their hearings at Town Hall in late December and January. 

Residents who met with Vision hearing officers in December and January received notice of Vision’s findings on Jan. 30. They learned if their assessment was reduced, increased or had no change made.

Residents seeking a further appeal if they do not believe their assessment reflects market value as of Oct. 1, 2014, may appeal to the Board of Assessment Appeals (BOAA). Requests for a BOAA hearing must be received by this Friday, Feb. 20. Click here for an application. Hearings will be held in March.

The final numbers for the grand list will not be known until the BOAA completes hearings for those who seek them and makes its findings. Residents and owners of commercial and industrial properties may also appeal to Superior Court if they are still aggrieved.

###