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From YouTube: Board of Equalization Meeting | September 13, 2023
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A
What
good
morning
today
is
Wednesday
September,
13
2023.
This
is
the
Arlington
County
Board
of
Equalization
hearing.
There
are
seven
cases
on
the
original
agenda,
we'll
start
with
rpc1400802a
the
properties
on
9th
Street
North.
There
was
a
signed
letter
between
the
parties
on
September,
9th
or
September
7th.
So
we
won't
hear
that
case.
The
second
case
on
the
agenda
is
RPC
22014-131
and
51,
8th,
Street,
South
I
believe
we
have
Mr
Harmon
there
he
is
I.
Just
would
direct
the
board
to
make
sure
they're.
B
Yes,
thank
you
so
5100
8th,
Road
South.
This
is
the
fields
of
Arlington
apartments.
It's
located
just
north
of
Columbia
Pike,
just
at
South,
Dinwiddie
Street.
These
apartments
were
built
in
1960
and
consist
of
198
committed,
affordable
units
that
are
spread
across
three
buildings.
64
of
these
198
units
are
section
8
housing.
B
The
2023
assessment
represents
a
4.4
percent
increase
over
the
2022
assessment,
even
as
noi
has
been
studied.
When
we
inspected
this
property
in
June,
it
was
evident
that
it
was
very
dated
this
is
this,
of
course,
increases
the
operating
expenses
due
to
less
efficiency.
And
additionally,
as
I
stated,
this
property
is
spread
across
three
different
buildings,
so
that
also
increases
operating
expenses.
B
This
property
also
includes
utilities
and
rent,
so
as
the
cost
of
utilities
increases,
so
does
the
cost
to
operate
the
property
and
with
this
being
committed
affordable,
you
have
limited
potential
of
recouping
that
increase
in
the
cost
of
utilities.
So
if
the
cost
of
utilities
increases
quicker
than
the
increases
in
rents,
which
is
what's
happened,
the
past
few
years
then
effectively
your
your
profitability
decreases.
B
Now.
This
is
illustrative
of
committed,
affordable
apartment
units
being
more
vulnerable
to
expense
increases
because
of
their
limited
ability
to
increase
rents,
to
offset
increased
expenses,
not
only
utilities,
but
all
expenses,
especially
when
inflation
is
running
at
six
percent.
Six
point
five
percent
or
higher
for
two
years
straight
as
it
has
been.
B
This
of
course
increases
the
risk
profile
of
committed,
affordable
apartments
in
times
of
persistently
High
inflation.
To
illustrate
this
point,
the
operating
expenses
increased
by
nine
percent
from
2020
to
2021,
while
income
only
increased
by
2.2
percent.
This
is
a
Delta
of
nearly
seven
percent
between
the
increase
in
expenses
and
the
increase
in
income.
This
this
discrepancy
comes
directly
off
the
bottom
line
for
committed,
affordable
units
due
to
the
lack
of
ability
to
raise
rents
as
rapidly
to
keep
Pace
with
inflation.
B
So
the
risk
profile
of
committed,
affordable
properties
is
increased
because
in
the
income
stream
is
not
as
stable
or
predictable
as
a
property
that
is
not
restricted
to
account
for
the
increased
risk
associated
with
committed,
affordable
with
the
committed,
affordable
units
such
as
this
one,
especially
in
a
high
inflation
environment,
as
we've
experienced
over
2021
and
2022.
In
addition
for
to
accounting
for
the
increased
cost
of
capital
that
the
market
experienced
over
the
course
of
2022,
the
cap
rate
needs
to
be
increased
by
75
basis
points
to
7.05,
including
the
tax
rate.
B
This
loaded
cap
rate
7.05,
the
base
rate,
plus
the
tax
rate,
is
supported
as
a
market
cap
rate
for
a
1960
build
committed,
affordable
apartment
property.
As
of
the
data
value,
we've
seen
an
orange
length
sale
just
down
the
road
at
the
Jasper
Columbia
Pike,
which
is
a
much
newer,
2009
build
consisting
of
269
market
rate
units
which
sold
at
about
a
6.66
percent
cap
rate.
Again,
that's
a
2009
build
market
rate
units
and
they
were
at
a
6.66.
Clearly,
this
property
is
riskier
now,
knowing
where
market
rate
properties
that
are
much
newer.
B
Trade
shows
us
that
7.05,
as
a
cap
rate,
is
well
within
the
market
rate
for
committed,
affordable
apartment
buildings.
As
of
the
data
value,
this
is
only
a
40
basis
point
premium
to
the
newer
market
rate
of
apartments
that
have
sold
recently
in
the
county.
As
such,
we
respectfully
request
the
assessment
be
reduced
as
set
forth
in
the
appeal.
Thank
you.
C
A
C
D
C
Morning,
good
morning,
everyone
so
the
subject:
property
was
built
in
1960
and
it
has
an
effective
age
of
1975..
The
project
includes
three
five-story
buildings,
with
a
total
of
199,
affordable
apartment
units,
an
interior,
an
exterior
inspection
was
conducted
on
June,
26,
2023
and
informal
hearing
was
also
held
on
on
June
21st
2023.
C
The
issue
here
is
the
appellants
are
contesting
the
operating
expenses
and
the
cap
rates.
We
have
conducted
the
analysis.
We
did
not
receive
the
actual
2022
rent
roll.
However,
we
did
utilize
the
coaster,
information
and
reviewed
the
apartment.
Mixed
information
page
attached
to
the
2022
INE
survey,
the
apartment
income
noted
a
4.12
increase
in
2022,
as
you
can
look
at
the
summary
page
column
e.
The
effect
of
gross
income
noted
at
3.54
increase
in
2022..
C
If
you
could
look
at
our
tested,
egi
tested,
column
f,
our
test.gi
is
actually
below
the
egi,
the
appellants
reported
for
2022
and
it
also
below
the
appellants
projected
egi.
This
is
how
conservative
we
are
no
wonder:
they're,
not
contesting
the
income
here
now.
The
operating
expenses,
the
operating
expenses
reported
for
2022,
show
drastic
increase,
specifically
maintenance
and
repair
category
which,
according
to
the
appellant,
increased
by
stuttering,
94.05
percent.
We
have
analyzed
the
three-year
trend
for
maintenance
and
repairs,
and
we
identified
for
every
our
areas,
which
we
believe
have
been
overstated.
C
We
have
reached
out
to
the
appellons
attorneys
and
we
asked
for
some
explanation
for
such
large
variances
and
unfortunately,
we
have
not
received
the
answer.
C
We
applied
a
three
percent
stabilized
vacancy,
while
the
appellants
projected
only
1.33
on
the
performer
in
our
test
column,
F,
we
applied
stabilized
Opex
of
38.5
percent
and
we
just
use
the
average
of
past
three
years
to
stabilize
this
number.
We
also
decreased
other
income.
C
We
applied
6.3
percent
cap
rate,
according
to
our
2023
guidelines
for
affordable
units
in
the
proforma.
The
equivalence
applied.
Seven
point:
zero
five
percent
cap
rates,
our
test
column,
produced
the
final
value
that
exceeds
the
2023
assessments
and
again
I
just
want
the
board
to
focus
on
two
specific
areas
that
our
tested
egi,
how
much
below
we
are
from
what
they
projected
and
from
what
they
reported
in
2022
and
just
pay
attention
to
those
operating
expenses,
specifically
maintenance
and
repairs.
Thank
you.
D
Thank
you.
Do
we
have
any
questions
from
the
board.
E
For
the
Department
I
want
to
make
sure
I
understood
this
is
the
was
the
test.
You
never
got
a
rent
roll,
so
you
just
imputed
it
from
similar
properties.
C
We
took
the
summary
rental
that
one
page
that
was
attached
to
2022
ine
and
we
gave
it
a
strong
consideration
and
based
on
sorry.
A
C
E
For
the
appellant
first
question,
an
obvious
one:
why
was
the
rent
Walnut
provided.
B
So
what
the
the
Drea's
INE
survey
form
each
year
request
is
a
rent,
Matrix
and
that
was
provided,
and
then
they
come
back
later
on
and
request
a
rent
roll.
Well,
neither
of
those
items
are
required
by
law
to
be
provided.
All
that's
required
to
be
provided
is
income
and
expenses,
actual
income
expenses,
and
that's
what
they're
supposed
to
be
basing
the
the
assessment
off
of
per
the
Virginia
law
code,
especially
with
affordable
housing.
They
must
consider
actual.
B
E
Other
question
is:
do
you
know
what
the.
F
E
Do
you
know
what
the
permitted
rent
increases
per
year
for
committed,
affordable
apartments,
I.
B
Do
not
I
believe
it's
tied
to
area
media
median
income,
so
I
I'm
not
sure
exactly
how
that
calculation
shakes
out
year
to
year.
You
know
that
that
is
good
information
to
know,
but
it's
tied
to
the
area,
median
income
and
then
committed
affordable
is
typically
a
percentage
of
that
Ami
I.
G
Would
have
to
apply
to
get
a
rental
increase,
you
apply
to
bhda
or
or
you
know
behind,
and
you
have
to
apply
and
justify
a
rental
increase.
There's
no
automatic
increase.
E
Or
in
each
year,
it's
Case
by
case
year
by
year
unit
by
okay
thanks
a
lot.
H
Mr
Lawson
yeah
for
the
county
is
this
the
same
cap
rate
for
a
market.
C
C
Yes,
so
I
I
hope
the
board
can
recognize
that
we
were
conservative
with
our
projections
and
test
column
F
and
our
projective
egi
again
was
below
the
egi
that
was
reported
for
2022
and
the
egi
they
projected
in
the
2023.
Performa
I
asked
the
board
again
to
pay
attention
to
unexplained
94
increase
in
the
maintenance
and
repairs
we
dissected
this
particular
expense
category
into
subcategories
and
compared
it
to
two
prior
years.
It
just
didn't
make
sense.
C
We
didn't
hear
the
answer
and
we
asked
the
board
to
confirm
the
subjects:
2023
assessment
at
38
million,
seven
hundred,
seventy
thousand
nine
hundred
dollars.
Thank
you
so
much.
D
B
This
doesn't
make
sense
in
a
high
inflation
environment
that
the
market
has
experienced
over
the
past.
Two
three
years
was
known
to
be
still
experiencing
at
the
end
of
the
year
and
as
of
the
data
value,
any
potential
purchaser
coming
in
and
evaluating
a
committed,
affordable,
housing
property
knowing
that
inflation's
running
six
and
a
half
percent
over
2022
and
is
continuing
to
increase
both
goods
and
labor.
B
D
I
F
I
I
H
J
D
J
Yates,
one
and
I
agree
with
the
idea
about
the
expenses
the
county
looked
at
the
average
over
the
years.
What
averages
the
bottom
one
and
the
top
one
and
you
come
somewhere
in
the
middle-
well,
clearly
they're
ratcheting
up
the
expenses
and
will
probably
continue
so
I,
don't
think.
Looking
at
an
average
is
the
right
thing.
I'm
looking
at
the
progression
and
I
came
up
and
I
was
running
it
with
it.
I
H
This
is
low,
this
is
you're
asking
they
have.
You
have
moderate,
you
have
low
This,
Is
Love.
E
B
I
The
big
difference
between
you
know:
if
the
maintenance
repair,
if
it
goes
up,
you
know
they
redecorated
or
something
on
a
market
rate,
and
they
maybe
it
can
drive
the
rents
up.
They
can't
push
the
rents
out
unless
they
ask
for
permission
right
right
right.
So
a
lot
of
times,
that's
better
like
just
right
maintenance
that
needs
to
be
done
versus.
You
know
trying
to
push
the
economics
of
it,
but.
J
D
All
right
but
I
normally
they
have
waiting
list
they're,
ready.
I
D
C
D
A
L
Okay,
thank
you.
Good
morning,
everyone
I'd
like
to
direct
the
board,
please
to
page
45
of
148
of
the
County's
board
memo
again.
This
is
just
our
summary
of
facts.
This
is
the
Wildwood
apartment
Towers,
the
Rival
towers,
located
at
1075,
South
Jefferson.
L
It
actually
has
has
two
Parcels
one,
that's
located
in
Arlington
County
and
the
other.
That's
that's
a
crosses
over
into
Fairfax
County,
a
land
parcel
parking
lot.
That's
not
under
dispute.
The
county
has
appropriately
discounted
that
value
out
of
the
total
value
of
their
assessment.
As
you'll
see,
the
original
assessment
was
34
million.
Seven
hundred
fifteen
thousand
eight
hundred
the
county
is
recommending
a
revision
to
33
million
287
100.
L
and
the
value
that
we're
asking
for
from
the
board
today
is
28
million
164
400.,
it's
an
older
property.
It
was
originally
built
in
1965
renovated
in
2003,
it's
134
total
units,
a
a
multi-family
high-rise
building,
one
Total
Building
10
stories.
It
sits
just
to
the
south
of
of
Columbia
Pike
in
pretty
close
proximity
to
Bailey's
Crossroads
I'll
direct,
the
the
board.
Now,
to
page
three
of
the
memo,
which
is
the
apartments
or
excuse
me,
the
County's,
Department,
income
and
expense.
L
Summary
you'll
see
the
columns
highlighted
in
blue,
which
are
the
historic
actuals
that
have
been
reported
at
the
subject:
property
for
each
of
the
last
four
consecutive
years,
dating
back
to
2019.
L
the
the
County's
test
column
found
in
column,
column,
F,
lifts
a
gross
potential
income
for
the
apartments
of
3
million,
one
hundred
and
eighty
three
thousand
one
twenty
as
you'll
see
that's
the
highest.
That's
ever
been
reported
at
the
subject
property
in
any
of
the
last
four
consecutive
years
it
was
2.9
Million
in
2019,
again
2.9
Million
in
2020,
2.955
and
21,
and
just
a
little
over
3
million
in
2022.
So
this
has
been
a
very
stable,
stable
property.
L
L
Same
thing,
with
with
the
total,
when
you
look
at
the
total
GPI,
the
County's
revised
test
column
went
up
from
3.265
million
to
3.3
million.
The
actual
reported
in
2022
was
3.15
Million
again,
if
you
look
at
2019
2020
21
22,
that
is
the
highest,
that
3.3
million
total
gross
potential
income
in.
L
Is
the
highest
that
the
property
has
well
above
what
the
property
has
ever
operated
at
in
the
last
four
consecutive
reporting
years
with
regard
to
the
expenses
in
2021,
this
property
operated,
38
expense
ratio.
Most
recently,
they've
reported
39.28
expense
ratio.
The
county
in
their
revised
test
column,
did
adjust
their
expenses
up
to
38.5
percent.
However,
we're
asking
that
the
county
excuse
me
that
the
board
considered
the
actual
reported
expenses
at
the
subject.
Property,
as
we've
talked
about
previously.
L
Expenses
are
on
the
rise
for
the
operations
of
these
properties,
especially
properties
of
of
an
older
older
age,
and
condition
such
as
the
subject
property,
the
actual
noi.
In
the
County's
revised
test
column,
it
did
go
down
from
a
little
bit
a
little
bit
below
2
million
at
1.995
million
in
their
original
assessment
to
1.915
million,
which
is
still
twenty
thousand
dollars
below
what
the
property
was
actually
able
to
achieve
in
2022
most
recently,
and
so
again.
L
What
we're
asking
for
is
for
the
county
to
to
consider
the
gross
potential
income.
This
property
has
been
able
to
generate,
and
it's
been
pretty
consistent
in
each
of
the
last
four
consecutive
years,
and
also
consider
the
actual
operating
expenses
that
were
most
recently
reported.
Subject:
property.
Thank
you.
D
Thank
you,
Miss
Kelly,
with
your
immunity.
K
Thank
you
board
members,
so
this
is
Wildwood
Towers
Apartments.
It
is
a
high-rise,
multi-family,
building,
134
units,
it's
located
in
the
Columbia
Forest
neighborhood,
which
is
in
the
Columbia
Pike
Corridor.
It
is
roughly
3.1
miles
from
the
Virginia
square
and
Boston
Subway
stations
and
has
three
shopping
centers,
all
within
the
10
minute
walking
distance.
Now
this
property
did
experience
an
extensive
rehabilitation
in
roughly
2004
and
received
an
effective
age
increase
to
2004
to
recognize
those
updates.
K
Now
that
effective
age
was
decreased
in
2021
down
to
1995,
which
is
the
current
effective
age,
and
that
was
to
bring
the
effective
age
in
line
with
this
category
of
Renovations
that
included
a
new
HVAC
system.
New
windows,
updated
kitchens,
updated
bathrooms,
updated
common
area,
amenities
like
the
fitness
center,
the
game,
room
and
social
room,
and
it
did
add
a
new
parking
garage.
K
K
K
So
and
as
of
January
1,
this
property
was
100
occupied
per
the
rent
roll.
K
The
county
is
a
lot
allowing
six
percent.
If
you
look
at
column,
D
and
column,
F
we're
still
allowing
six
percent
for
both
of
those
both
the
both
the
original
assessment
and
the
revision,
which
is
roughly
one
hundred
and
seventy
thousand
dollars
over
what
was
reported
for
2022..
Now
the
Mr
Warren
actually
mentioned
that
the
income
was
higher.
K
I
think
at
three
point
three
point:
three
million
versus
the
reported
for
2022,
which
is
3.1
million,
we're
allowing
for
170
000
over
what
was
reported
in
vacancy
and
that
consumes
that
amount
which
was
160
000.
the
expenses
for
years
20
through
2022.
There
are
huge
swings
in
some
of
these
categories.
They're
highlighted
in
yellow
I'll
walk
you
through
some
of
those
for
janitorial,
for
instance,
there
was
a
10
deduction
and
then
in
2022
there
was
a
48
increase
for
maintenance
and
repairs.
K
Also
swings
for
a
net
category
as
well:
29
increase
in
2021
and
now
it's
down
a
negative
one
percent
reporting
for
2022
administrative
administrative
expenses.
Again
operating
history
shows
more
stabilized
for
2020,
2020,
sorry
2019
to
2021,
and
then
there's
a
roughly
11
increase
for
2022.
K
Services
same
as
the
others,
38
increase
in
2020
13
for
2021
and
now
25
for
2022..
Now
the
expenses
per
unit
also
show
a
huge
swing.
If
you
look
at
the
the
figure,
that's
below
the
operating
expense
line,
you'll
see
that
there's
huge
swings
there.
Then
the
county
has
recognized
in
our
revision
that
we
we
do
acknowledge
that
expenses
are
going
up,
and
so
we
do
propose
an
increased
expenses
from
35
percent
up
to
38.5.
This
is
roughly
a
900
increase
in
the
per
unit
expense
rate.
K
The
noi
for
this
property
is
stabilized.
If
you
can
look
at
the
noi
line,
which
is
line
19
across
the
board,
it's
definitely
stabilized
again.
It's
100
occupied.
As
of
January
1..
Our
original
projected
noi
was
five
percent
over
what
was
reported
in
2021.
K
The
revision
is
one
percent
over
what
was
reported
in
2021..
Our
goal
is
not
to
match
what
was
reported
in
2022,
our
I'm.
Sorry,
our
goal
is
to
look
at
a
stabilized
history
for
the
property
and
we
are
proposed
that
this
property
increase
less
than
one
percent
in
one
year
in
noi
Additionally,
the
agent
is
imputing,
a
twenty
thousand
dollar
amount
for
replacement
reserves
in
their
performer,
which
is
in
column
three
again
I
just
want.
K
You
want
the
board
to
just
note
that
the
replacement
Reserves
are
already
included,
assumed
in
the
cap
rate,
that's
two
tenths
of
a
percent,
and
if
you
do
the
math
for
that,
it
comes
out
to
three
times
higher
than
what
they're
than
the
twenty
thousand
dollars
is
listed.
There
I
think
it's
65
570.
If
you
do
the
math
there,
we
are
adjusting
for
land
for
the
Fairfax
portion,
there's
no
areas
of
contention
there.
K
We
do
agree
that
the
918
thousand
dollars
has
been
accurately
accounted
for
and
we
are
proposing
a
recommending,
a
reduction
in
the
original
assessment,
233
million
287
100,
which
is
lower
than
the
2022
assessment.
Thank
you,
I'm
open
for
questions.
D
Thank
you
any
questions
from
the
board.
It's
a
lot.
H
Yes,
because
this
is
for
the
county,
I'm
just
wondering:
have
you
all
ever
thought
about
updating
the
0.2
percent
in
the
cap
rate
for
reserves
and
the
reason
I
ask
that
is:
is
I
see
this?
We
see
this
all
the
time
that
applicants
are
suggesting
a
reserve,
but
the
County's
not
going
for
it
and
I'm
just
curious
as
the
has
the
world
changed,
such
that
owners
now
want
more
reserves
or
have
you
looked
at
that.
K
May
we
look
at
that
every
year
when
we
do
or
we
develop
our
guidelines,
it
is
something
that
we
will
pay
closer
attention
to
as
we
acknowledge
increase
in
expenses
increases
in
in
you
know,
the
fact
that
we
haven't
made
changes
there,
but
in
this
particular
case
we're
also
three
times
more
with
their
reporting
in
representative
Replacements,
but
it
is
something
that
we
look
at
every
year.
Okay,
that's.
E
For
the
Department,
you
are
in
the
test
case,
knowing
what
the
actual
rental
income
was
for.
2022.
You
increase
that
by
5.15
percent.
That's
going
experience
very,
very
high
increase.
What
is
it
based
on.
K
Sorry,
if
you,
if
you
look
at
I,
believe
it's
page
the
test
page
four.
In
addition
to
the
rent
roll
analysis
on
page
five,
there
was
some
adjustments
to
the
rents
based
on
actual
reportings.
So
this
is
a
projected.
K
D
Okay,
thank
you
any
other
questions,
no
Miss
Kelly.
Would
you
like
to
go
with
your
one
minute?
Please.
K
Sure
again,
I
just
wanted
to
note
that
I
mean
we're
not
looking
at
one
year
we're
looking
at
a
stabilized
history
for
this
property.
We
are
suggesting
that
the
the
egi
value,
which
can
which
includes
a
six
percent
vacancy
where
they're
reporting
less
than
one
percent,
should
be
factored
into
your
decision.
We
are
allowing
for
higher
expenses
right
now
with
the
revision
it's
900
more
than
what
was
than
what
was
allowed
for
the
original
assessment.
K
D
L
Yeah,
thank
you
very
much
so
just
to
respond
to.
With
regard
to
the
last
question
about
you
know
the
gross
potential
income
for
the
apartments
going
up
five
percent
in
their
test
column.
It's
it's
an
issue,
I,
think
that
we
brought
up
many
times
in
the
past
in
previous
years.
It
hasn't
quite
come
up.
L
I,
don't
think
this
year,
however,
but
what
we
find
is
is
exactly
that
is
once
they
review
the
actuals,
that
test
column
for
the
gross
potential
seems
to
go
up
so
that
they
can
take
their
six
percent
vacancy.
L
So
what
it
affects
the
most
are
these
stabilized
properties
and
again
this
property
has
been,
and-
and
it's
seen
through,
the
the
actual
financials
for
the
last
four
years-
very
stable
with
regard
to
gross
potential
income
for
the
apartments
and
and
the
total
gross
potential
income-
and
it
has
not
had
a
lot
of
vacancy
so
again
if
they
could
increase
rent
that
they
could.
But
what
you
see
is
that
gross
potential
income
go
from
3.1
five
to
three
point.
L
You
know
one
one,
eight
million
again,
so
they
can
now
take
the
the
which
is
a
again
that
3.18
million
is
you
know,
a
hundred
and
fifty
thousand
dollars
higher
than.
L
D
You,
okay,
some
of
the
board.
Now,
where
do
we
spend
and
changes
I'm
good
with
accounting.
I
I
J
H
I
E
Take
a
couple
things:
one
could
be
the
Appellate
just
sum
it
up
as
a
very
stabilized
property.
This
is
a
very
stabilized
assessment
and
that's
the
end
of
it,
but
I'm
stuck
on
the
GPI
and
ETI
increases
that
are
not
achievable
and
I.
I
believe
that
the
rationale
is
oh,
but
we've
given
them
better
I'm.
Sorry
GPI
is
too
either
the
egi
comes
in
because
we've
given
them
a
higher
vacancy
rate,
well
they're
the
recipient
of
an
average
vacancy
rate.
E
And
that's
kind
of
what
we
do
in
Mass
appraisal,
I
I,
don't
think
that
we
should
use
the
fact
that
they
have
pretty
much
No
Vacancy
against
them.
Just
we
forgive
others
who
have
expenses
that
are
too
high,
because
they're
guidelines
and
I
just
funny
so
I've
done
six
times
at
two
and
a
half
percent
I.
Think
two
and
a
half
percent
is
a
healthy
increase
for
rent
again.
H
E
A
non-luxury
non,
exciting
apartment
building
and
I.
H
E
With
six
different
answers
so
I,
if
anybody,
if
people
agree
that
we
ought
to
lower
that
5.15
downward
and
again
I
took
two
and
a
half,
because
I
still
think
it's
healthy
and
I
invite
somebody
to
to
run
the
math
because
I'm
just
not
able
to
do
it
today.
I
had
a
little
yesterday
and
today,
if
not
I,.
D
G
D
That
being
on
time,
I,
don't
know
but
I
think
the
rents
are
there.
What
do
you
guys
think.
H
H
Here:
here's
what
our
coach
section
says
any
other
evidence
relevant
to
determinating
fair
market
value
of
such
property.
That's
over
to
consider
and
so
I
think
guidelines
are
great
most
of
the
time.
But
when
you
have
clear
evidence
that
this
has
been
occupied
at
point,
eight
nine
percent,
one
percent,
one
percent
yeah
success-
I-
think
you
gotta
take
that
into
account
can't
ignore
it.
E
D
I
D
L
Yes,
thank
you
so
again,
I'd
like
to
direct
the
board
to
page
47
of
148.
of
the
County's
board,
memo
which
again
you'll
find
our
summary
of
facts.
This
is
the
park
Adams
Apartments,
located
at
2000,
North
Adams
Street.
It
was
initially
assessed
at
50
million
752
300..
The
county
is
recommending
the
revision
of
47
million
195
200..
L
This
is
also
an
older
property,
originally
built
in
1960
200
units
that
sits
just
north
or
excuse
me
just
south
of
66th
and
north
of
Route,
29
I'll,
now
direct
the
county
or
the
board
and
the
county
to
page
three
of
the
apartment,
income
and
expense
summary
very
similar
to
the
last
property
that
we
just
we've
discussed.
L
But
for
the
most
part,
this
has
been
also
a
a
pretty
stable,
stable
property,
as
well
as
seen
in
the
columns
highlighted
in
blue,
which
are
the
last
four
years
of
reporting
from
dating
back
to
2019,
similar
to
Wildwood
Towers,
which
we
just
discussed
is
with
regard
to
the
the
counties
overestimation
of
the
gross
potential
income
for
the
apartments
and
in
the
total
gross
potential
overall.
L
But
in
2019
the
the
apartment
GPI
was
approximately
4.5
million
0.4.48
million
in
2020
in
2021
it
dropped
down
to
four
million
100
000
and
then
back
up
to
4.4
million,
most
recently
in
2022.,
the
County's
original
assessment,
estimated
apartment
GPI
of
4.556
million
that
did
drop
down
slightly
in
the
revised
test,
column
in
column
F
to
4.518
million.
But
again
this
is
still
ninety
thousand
dollars
higher
than
what
was
reported
most
recently
in
2022
and
higher
than
anything.
L
That's
ever
been
reported
in
the
last
four
consecutive
years
that
follows
right:
along
with
the
total
gross
potential
income
as
well.
The
total
gross
potential
income
reported
in
2022
of
4
million
nine
hundred
thirty
four
thousand
seven.
Eighty
five.
Well,
that's
approximately
a
hundred
thousand
dollars
still
below
the
County's
revised
test
column
for
gross
potential
income
of
5
million.
Forty
two
thousand
five
hundred,
even
with
the
six
percent
Market
vacancy,
that's
applied
to
again
in
the
mass
Market
appraisal.
For
for
all
the
apartments.
L
In
this
category,
the
effective
gross
income
was
reported
at
four
million,
seven
hundred
thirty
nine
thousand
nine.
Fifty
in
the
County's
revised
test
column,
which
is
still
fifty
thousand
dollars
higher
than
what
was
most
recently
reported
in
2022..
So
again,
it
looks
like
that
the
county
is
is
inflating
the
gross
potential
income
so
that
they
can
take
their
their
full
Market.
L
Market
vacancy
and
they're
still
coming
up
with
a
substantially
higher
aggressive
potential
income
than
the
properties
is
able
to
generate
most
recently
in
2022
with
regard
to
again
the
operating
expenses,
this
property
in
2021
reported
45
expenses
and
again
in
2022
45.47
expenses,
so
went
up
a
about
half
a
percent
year
over
year,
which
is
pretty
stabilized.
The
County's,
revised
test
column
uses
an
expense
rate
of
42.25,
so
we're
we're
asking
the
board
to
give
additional
consideration,
based
on
the
the
actual
historical
operations
of
this
stabilized
property.
L
You've
seen
over
the
last
two
years
in
in
the
actual
reporting
in
the
actual
operating
expenses.
With
regard
to
again
the
the
net
net
operated
income.
L
You
know
that
the
county
is
approximately
almost
two
hundred
thousand
dollars
in
the
revised
test
column
above
what
this
property
was
able
to
generate
most
recently
in
2022
it
it
had
been
fairly
stable
in
1920
it
dropped
down
to
you
know:
2.4
million
in
2021.
It
did
come
back
up
to
2.55
million,
but
again
still
nowhere
near
the
levels.
L
It
was
reporting
back
in
1920
and
again
two
hundred
thousand
dollars
above
what
this
property
was
able
to
generate
most
recently
in
2022.,
so
again
we're
hoping
that
the
board
will
take
consideration
into
both
the
gross
potential
income,
as
well
as
the
operating
expenses
which
has
been
fairly
stable
at
this
property
over
the
last
several
years.
Thank
you.
L
K
So
this
is
Park
Adams
Apartments,
it's
a
mid-rise
multi-family
project,
there's
a
seven
story:
building
with
200
units,
it's
located
roughly
a
half
a
mile
from
the
courthouse
Metro
station,
it's
enclosed
in
proximity
to
three
shopping
centers,
all
within
eight
cents
of
a
mile,
which
is
roughly
a
15
minute
walk.
This
was
built
in
1960.
It
has
an
effective
age
of
1975..
K
Property
features
include
a
brand
new
fitness
center
outdoor
pool
I'm
at
computer
center,
updated
resident,
Lounge
brand
new
laundry
room
dog
park,
24
hour
package,
concierge
system
with
notifications
and
at
first
glance
it
does
look
like
this
property
has
experienced
some
issues
in
Prior
years,
but
even
as
the
agent
has
noted
that
this
property
is
stabilized,
what
they
are
doing
is
if
you
look
at
the
concession
lines
versus
the
income
line,
you
can
see
that
that
is
used
as
a
stop
Gap
to
to
feel
basically
to
feel
units
as
they
are
updating
them
to
fill
occupancy
as
units
are
being
taken,
offline,
doing
updates,
which
is
lowering
the
rents
and
showing
in
higher
concession
rate.
K
Now,
if
you
look
at
the
2022
operating
year
operating
history,
the
county
is
suggesting
in
the
in
the
revision
for
column.
F,
a
two
percent
increase
over
what
was
reported
for
2022.
and
if
you
notice,
the
GPI
has
increased
six
percent
in
operating
year.
2022
and
currently
the
concessions
are
starting
to
burn
off,
with
reporting
of
only
less
than
one
percent
in
concessions
of
four
percent
in
vacancy.
K
The
egi
did
increase
8.89
for
year,
2022,
the
county
again,
and
its
revision
is
only
recommending
the
one
percent
increase
which
we
don't
ignore,
like
we're
not
trying
to
penalize
anyone
for
lower
reporting,
lower
expenses,
but
we
are
using
the
the
effective
gross
income
looking
at
the
operating
expenses
to
determine
what
they
eat
with
that
noises.
For
that
what
a
cons,
a
conservative,
noi
projection
for
that
for
the
for
that
year,
again,
concessions
are
starting
to
burn
off.
K
Rents
have
been
rents
are
more
stabilized
with
an
increase
of
five
percent
for
2022,
but
there
are
huge
swings
in
the
expenses
again
similar
to
our
original.
Our
first
case
utilities,
for
instance,
there's
10
reported
in
2021
and
then
there's
a
negative.
Two
percent
reported
for
2022
maintenance
and
repairs
same
thing:
negative
40
for
2020
10
for
2021
and
then
a
2020
for
2022
is
we're
reporting,
26.16
Services,
similar
issues,
seven
percent
for
2020
11,
then
a
negative
26
in
2022.
K
K
I'm
trying
to
see
this.
If
there's
anything
else
here,
the
noi
is
roughly
in
column
F
the
revision.
Our
noi
is
seven
percent
higher
than
what
they're
reporting.
But
again,
if
you
look
at
what
they
reported
for
2022,
they
increase
in
eight
percent.
Eight
point:
two:
two
percent
in
their
noi
from
2021
to
2022..
Our
proposed
revision
of
47
million
195
200
is
actually
lower
again
than
the
2022
assessment,
so
I
recommend
that
the
board
confirmed
the
reduction,
a
revision
of
47
million,
195,
200
and
I'm
open
for
questions.
I
Yeah
Blake
looked
like
20
22
on
the
INE
502
000
for
other
admin
costs.
It's
a
pretty
big
jump
year
over
year,
but
there
was
no
explanation,
I'm
just
curious
where
that
money's
going.
L
So
we
did
provide,
and
it's
in
the
it's
in
the
package.
L
Kristen
asked
that
so
we
had
a
response.
He's
got
our
email
response
in
there
and
we
provided
him
a
breakdown.
I'm.
Sorry
I,
don't
know
what
page
it's
on
now.
Let
me
find
it
for
you,
but
it
is
on.
K
Page
24
23,
24.
yeah.
L
So
there's
a
snippet
there
and
it'll
break
down
all
those
costs.
What
else
are
provided
in
there
too,
and
as
a
response
to
Chris-
and
this
is
directly
from
the
owner
is-
is
what
we
saw
some
of
those
other
expense
line.
Item
fees
is,
there
was
an
increase
in
reported
legal
fees,
and
that
has
to
do
to
the
substantial
number
of
eviction
filings
that
were
in
2022.
That
kind
of
resulted
from
the
courts
opening
back
up
and
the
evictions
process
kind
of
proceeding
again
after
covid.
L
So
there
was
a
huge
backlog
but
those
because
it's
such
a
huge
fact
I'll
get
expected
to
continue
for
for
again
yeah,
but
into
the
future
I
mean
it's.
These
expenses
are
are
expected
into
next
year,
the
current
year
next
year
as
well,
but.
L
But
for
the
next
couple
years,
I
would
expect
those
legal
fees
to
be
to
be
much
higher,
okay
and
whereas
you
might
not
have
been
getting
those
expense
expenses
considered.
In
Prior
years,
the
expenses
were
lower.
I
L
Well,
I
mean
it's
Again,
part
of
the
part
of
the
whole,
but
again
we
have
provided
a
breakdown
on
those
overall
expenses,
and
you
know
even
again,
with
the
revised
column,
the
county
is
150
000
below
what
the
actual
report
is.
E
Yes,
two
questions
for
the
Department
first
one
is:
is
this
building
been
visited
by
an
appraiser
or
when
was
the
last
time
was
visited
by
appraising.
K
It
says
2017
and
then
no
so
this
was
not
a
property
that
was
inspected
for
this
year.
Yeah
no.
E
The
second
question
is-
and
this
is
in
the
last
case
too
and
I
neglected
to
ask,
but
I
can
ask
it
now:
I
mean
there's
small
numbers,
four
digit
numbers
between
rows,
18
and
19
across
the
port
in
each
column.
What
is
that
is
that.
K
Reserves,
no
that
so
I
mentioned
that
in
the
other
case,
that
was
really
an
a
key
point.
In
the
other
case,
that
is
the
expense
that
is
the
per
unit
operating
expense
rate,
so.
K
In
the
other,
one
I
in
in
this
one
as
well,
I
did
acknowledge
that
we
increased
that
per
unit
operating
expense
amount
by
800
in
our
revision.
Thanks
a
lot
what's
up,
okay,.
D
K
Thank
you,
of
course,
so
you
know
we
are
stabilizing.
We
look
at
all
of
the
operating
history.
We
look
at
the
income,
the
expenses,
including
the
and
the
vacancy,
as
well
to
determine
what
the
noi
and
what
that
stabilized
NY
will
look
like
for
the
property.
What
we
did
in
our
revision
was
look
at
all
of
that
information,
including
increasing
the
operating
history.
I'm,
sorry,
including
increasing
expenses,
providing
a
stabilized
vacancy
at
six
percent.
K
Although
the
property
is
reporting
less,
it's
not
a
penalty,
but
we
are
providing
stabilized
vacancy
and
then
we
are
proposing
that
the
income
would
increase.
Two
percent
two
point:
one:
eight
percent
from
one
year
to
the
next,
when
they're
reporting
a
six
percent
increase
in
one
year,
so
we
do
recommend
that
the
board
reduce
this
assessment
or
confirm
the
reduction
to
a
47
million.
195
200
is
a
fair
assessment
for
this
property
and
which
is
lower
than
2022..
Thank
you.
L
Thank
you
similar
to
the
last
property
of
the
county
is
we
believe,
overestimating
the
gross
potential
income
to
basically
capture
the
two
percent
in
vacancy.
The
actual
vacancy
was
four
percent.
They
they
apply
six
percent
to
to
all
properties
of
this
similar
size
and
type,
and
that's
reflected
again,
the
the
gross
potential
income
it's
been
fairly
stable
over
the
last
four
consecutive
years
has
never
been
four
million
over
4.5
million
dollars,
which
it
is
here
or
or
five
million
dollars.
L
Five
million
42
500
for
the
the
total
gross
potential
income,
as
we've
discussed
before
operating
expenses,
have
been
on
the
rise
contract.
Consensus
are
up.
This
is
a
trend.
That's
going
to
continue,
and
it's
not
a
a
you
know
it's
pretty
stabilized
from
the
from
the
prior
year
year
and
you.
G
L
Even
with
that,
looking
at
the
the
County's
test
column,
the
county
is
a
hundred
and
fifty
thousand
dollars
below
what
this
this
proper
property
actually
reported
in
operating
expensive
last
year.
Thank.
I
Okay
with
the
county
of
this
week,
I
think
that
legal
fees
for
the
evictions
is
a
one-time,
backlogged
expense.
You
go
through
the
rent
row
and
it's
like
big
cranked
rents,
8
10,
15,
20
percent,
on
tenants
who
stayed
right,
18
and
a
half
percent
on.
I
You
know
one
that
I
just
checked
here
that
that
stayed
in
place,
so
they're
they're
kind
of
capitalizing
on
that
I
would
say,
probably
deferred
increases
the
rents
for
a
couple
of
years,
so
I'm
comfortable
with
the
production
yeah.
J
I
H
Awesome
yeah
I
was
there's
an
article
about
the
missing
middle
and
here's.
What
he
says
increase
zoning
flexibility
is
the
only
way
to
feed
a
starving
housing
market
and.
F
H
D
Yeah
I,
that's
what
would
you
think
they
should.
A
Go
well,
I
I
mean
I,
understand
what
Mr
Hoffman
is
saying.
You
know,
but
it's
it's
it's
real.
Whether
they've
got
evictions
and
they're
going
to
have
evictions
rolling
for
a
bit
at
this
post.
Covet
I
mean
this.
They
weren't
allowed
to
do
it
during
that
portion
of
time,
and
that
does
cost
money.
And
that's
that's
a
real
dollar
item
to
it.
I
mean
I.
I,
look
at
I,
just
think
the
expenses
are
a
little
bit
low.
I
mean
that's.
A
What
I
did
you
know
I'm,
not
sure
if
there's
any
consensus
to
it,
but
I
mean
you've
got
2.1
reported
and
that's
what
the
account
was
used
and
the
account
is
used
in
you
know
2002.
You
know
I
increased
it
to
44
percent,
which
ended
up
at
2
million
85.
A
J
J
A
F
D
J
H
E
And
I
don't
know
that
it's
enormous
money
and
I
can't
imagine
it's
going
through
to
2024
or
even
the
end
of
this
year,
but
but
I
mean
numbering
expenses
different,
certainly
subcategories
change
from
year
to
yearly
just
no
question
and
whole
leaks
in
the
ceiling,
and
you
get
a
lot
of
Maintenance
and
mud
and
paint.
But
you
get
lucky
on
something
else.
Yeah
I,
like
the.
F
G
H
Why
I'm
not
I,
don't
want
to
adjust
this
I
think
that
they're
way
under
on
rent?
So
if
they're
under
on
expenses,
they're.
F
J
J
H
I
F
D
D
D
L
So
this
is
one
that
we
had
sent
an
email
out
to
Rosa
we're
we're.
L
Fine
with,
and
were
we're
not
going
to
contest
to
the
County's
current
assessment,
which
is
74
million
355
800.
K
I'm,
sorry,
no
I'm,
sorry
I'm
I'm
wrong.
No,
you
you're
right
you're
right!
No,
we
don't
have
any
issues
with
that.
We
we're
in
agreement
with
the
with
the
with
the
agent
of
that
one.
So
we.
K
D
D
L
Yeah
I'm
not
going
to
take
up
eight
minutes,
so
this
is
the
one
that
was
rescheduled
because
we
have
been
in
discussions
with
Chris
about
the
reporting
on
this.
One
had
supplied
them
with
some
new
information,
with
their
guard
to
the
reporting
on
some
of
the
commercial
components
and
other
income
for
the
specific
commercial
that
was
getting
added
into
the
apartments
and
after
looking
at
that,
and
we
submitted
a
revised
INE
survey
to
the
county
as
well.
L
Chris
provided
this
mixed
use,
income
and
expense
summary
that
indicated
a
revision
from
185
million
014
700
to
184
million
531
700,
which
we
are
in
agreement
with,
and
it
just
had
to
do
with
a
double
count
of
income
that
was
being
reported
initially
in
the
commercial
component.
Valuation
was
also
being
added
into
the
apartments,
but
we
Chris
did
a
amazing
job
just
being
able
to
reach
out
with
us.
L
We
actually
worked
together
on
this
one
and
kind
of
found
out
the
issue
because
we
didn't
know
there
was
an
issue
initially
what
was
going
on,
but
we
have
figured
out
that
problem
and
then
moving
forward
for
these
properties
that
they
have
that
have
that
commercial
ground
component,
which
is
in
a
separate
valuation
I
know.
L
Ditmar
will
be
reporting
separate,
INE
surveys
for
each,
so
we
can
kind
of
make
sure
that
that
income
for
the
commercial
is
completely
separated
from
the
apartments,
and
we
don't
get
a
double
up
situation
like
we
did
here.
L
And
that's
all
I
have
but
yeah
we're
in
agreement
with
the
the
revised
income
mixed
use
of
the
income
expense
summary
that
was
provided,
which
shows
that
I
have
184
531
700.
D
Okay,
thank
you.
Miss
Kelly,.
K
K
I'm,
just
trying
to
make
sure
that
we're
saying
the
right
value
so
on
the
the
memo
sheet.
Unfortunately,
that.
K
L
K
Yeah,
you
are
correct,
I'm,
sorry
about
that.
So
we
we
are
in
agreement
that
in
the
I'm
sorry
on
the
memo,
it
should
have
actually
reflected
that
we
are
recommending
a
a
reduction
in
the
original
assessment
which
was
194,
sorry,
195,
474,
of
course,
I'm.
Sorry
475
900
to
the
revised
assessment
of
195
69
500.,
we're
not
in
contesting
we're
not
contesting
that
we
did
realize
that
there
was
a
double
counting
and
we
are
in
agreement
on
how
we're
going
to
move
forward
with
that
going
forward.
D
All
right.
Does
anybody
want
to
take
you
one
minute,
drop-ups
I,
guess
we
all
agree
that
that's
the
number?
No,
let's
just
confirm
the
number
all
right.
We
have
a
motion
to
confirm
the
number.
D
D
All
in
favor
hi
is
being
reduced
to
the
agreed
upon
number
of
195
million
and
69
500.
D
A
Just
to
add,
if
everybody
can
just
shoot
me
an
email
on
this,
we're
going
to
need
to
add
the
Monday
or
the
last
Monday
of
October
to
the
agenda,
which
would
give
us
a
Monday
and
Tuesday
that
will
be
10,
30.
and
then
10,
31
and
because
Wednesday
is
November.
So
I
just
want
to
know.
Everybody's
availability
and
I
know
you
may
not
have
it
right
now,
but
if
you're
available
on
that
Monday
to
be
able
to
hold
a
meeting.
D
So
we're
going
to
adjourn
10
15
a.m
and
we're
going
to
come
back
next.
Tuesday
Tuesdays,
virtually
September
19th
right
yeah.