Thomas MacMillan Photo
Perez: “We’re one big city.”
While New Haven’s state legislators remain divided on a plan to cushion house-rich homeowners from tax sticker shock, lawmakers closer to home are ready to approve it — even that means their own constituents temporarily subsidize neighbors across town.
A sampling of members of the Board of Aldermen found unanimous approval for a mayoral proposal designed to soften the blow for city homeowners socked by the latest round of property revaluations.
The plan, called the Homeowner Fairness Initiative, would phase-in over five years new property values for owner-occupied homes that saw an increase.
The proposal requires special permission from the state legislature, which at this point is a question mark. (Read about that here.)
If passed by the state, the mayor’s plan would then have to be approved by aldermen as part of an overall city budget package.
The plan is intended to protect newly house-rich homeowners from a big jump in their taxes starting next year. Some people would see their taxes jump by as much as $10,000 in East Rock. Hundreds of homeowners on the East Shore and In Westville would benefit from the plan, too. Under the proposed initiative, those people would ease into their new tax rate gradually over five years. East Rock’s taxes went up so much because property values did, too, over the last decade, especially compared with the rest of the city.
Click here for a ward-by-ward breakdown provided by City Hall of how many homeowners would benefit.
A drawback of the deal: taxes paid by other property owners would not be as low as they otherwise would. The plan amounts to, as Mayor John DeStefano has said, the majority of city taxpayers essentially subsidizing a smaller group.
That aspect of the plan doesn’t sit right with some of New Haven’s representatives in the state legislature. State Rep. Bob Megna said he last week that he’s “concerned” about the plan. State Rep. Toni Walker said she feels like she’s being rushed into it. Other legislators, including those representing East Rock, support the plan. Read more about legislative reactions here.
While the state delegation is mixed, aldermen interviewed Monday all said: We support the phase-in.
East Rock Alderman Justin Elicker said a straw poll of the board two months ago found unanimous support for the plan. Hill Alderman Jorge Perez, president of the board, said he thinks everyone’s behind it.
Aldermen said Monday night that they don’t mind the fact that the one part of the city would subsidize another.
“Either way it goes, some part of town is subsidizing other parts of town,” said Hill Alderwoman Andrea Jackson-Brooks.
Westville Alderman Adam Marchand said some people in his neighborhood would gain from the program and some would lose. He’s heard from people on both sides of the issue, but more from people who are concerned about the phase-in.
“I’m inclined to support the aims of the initiative,” Marchand said. The goal is to keep people in their homes by preventing high tax bills from forcing them out. He said he’s still considering the plan and listening to constituents.
“If it keeps homeowners in their homes, I’m all for it,” said Hill Alderwoman Jackie James. “The gain is bigger than the loss.”
James said support for the plan is somewhat mixed on the board. “It’s an acquired taste.”
East Rock Alderwoman Jessica Holmes has acquired the taste, not surprisingly. “It would definitely help a lot of people in East Rock this year,” she said.
Passing the plan would also set a good precedent, she aruged. There’s no reason the city won’t see a huge spike in some other neighborhood in the future, and the city could rally to help out people there too, she said.
People have an erroneous impression that East Rock is all doctors and lawyers, Holmes said. The neighborhood is actually home to a lot of longtime homeowners who may be house-rich but are cash-poor, she said.
If people are opposed to one neighborhood subsidizing another, why did the city vote to approve a tax freeze for the elderly a couple years ago? Perez asked.
“We’re one big city.” he said. Aldermen are willing to look at the larger picture. Some areas get more services than others even if they don’t pay more taxes, he said. Perez’s and Andrea Jackson-Brooks’ wards in the Hill would have among the fewest beneficiaries from the plan citywide — just 14 homeowners apiece.
“I’m always looking to the majority,” said Beaver Hills Alderman Brian Wingate. He’s looking for a plan that’s “going to help the masses,” he said. He said the initiative would do that.
Jackson-Brooks said the whole reval system needs to be overhauled. “There’s a bigger job that needs to be done here,” she said. “I don’t understand how they come up with the numbers.”
The use of the word "fairness" in this initiative is an insult to every non-homeowner in New Haven, as well as the small time landlords that will see a huge jump in tax bills that cannot be fully passed onto tenants (if at all).
If the city wanted to do the truly FAIR thing, they'd pass in a phase-in for ALL residential property, not just owner occupied.
This plan as currently designed amounts to a huge tax hike for the poorest residents of New Haven.