2026-10-08 - Ways and Means Committee

00:46GOOD AFTERNOON.

00:47UH, MY NAME IS BEN WEBER.

00:49I'M THE DISTRICT SIX.

00:50OH, GEEZ.

00:52WE GOT, UH, TO HAVE PAPER

00:55TOWELS.

00:56YEAH.

00:57OKAY, GOOD.

00:58>> WE'RE ON THE RECORD.

00:58FOR THAT.

00:59UH, COUNCILOR.

01:02CULPEPER IS TRYING TO DROWN

01:03ME FOR.

01:04>> THE.

01:04FOR THE HEARING.

01:06UH, HOLD ON A SECOND.

01:07SO WE ARE GETTING MORE TIME.

01:10IS COMING OUT OF YOUR.

01:18DO YOU WANT US TO MOVE OVER

01:20HERE?

01:20YEAH.

01:22YEAH.

01:31YEAH.

01:31UH, I JUST BETTER LUCK NEXT

01:34TIME.

01:35GIVE ME MORE TIME.

01:56IS THE TRASH CAN.

01:58THERE'S ONE OF YOU.

02:00YEAH.

02:11OH, I THINK WE'RE GOOD.

02:16OKAY.

02:20YEAH.

02:21OKAY.

02:23OH, YEAH.

02:24SO GET SOME.

02:30OKAY, LET'S JUST PRETEND THAT

02:32DIDN'T HAPPEN.

02:32UH, AND BANG THE GAVEL AGAIN.

02:34UM.

02:39>> OKAY.

02:39>> FOR THE RECORD.

02:40UH, MY NAME IS BEN WEBER.

02:42I'M THE BOSTON CITY

02:43COUNCILOR FOR DISTRICT SIX AND

02:45THE CHAIR OF THE BOSTON UH,

02:46CITY COUNCIL COMMITTEE ON WAYS

02:47AND MEANS.

02:48TODAY'S OCTOBER 8TH, UH, 2026

02:52AND THE EXACT TIME IS 2:07 P.M.

02:56UH, THE THIS HEARING IS BEING

02:58RECORDED.

02:58IT'S ALSO BEING LIVE STREAMED

03:01AT BOSTON.COM SLASH CITY

03:03COUNCIL TV AND BROADCAST ON

03:05XFINITY CHANNEL EIGHT OR ON

03:06CHANNEL 82 AND FILES CHANNEL

03:09964.

03:10WRITTEN COMMENTS MAY BE SENT TO

03:12THE COMMITTEE EMAIL AT

03:15[email protected] AND WILL BE

03:17MADE PART OF THE RECORD AND

03:18AVAILABLE TO ALL COUNCILORS.

03:20PUBLIC TESTIMONY WILL BE TAKEN

03:21AT THE END OF THIS HEARING.

03:23UM UH INDIVIDUALS WILL BE

03:26CALLED ON THE ORDER IN WHICH

03:28THEY'VE SIGNED UP AND WILL HAVE

03:29TWO MINUTES TO TESTIFY.

03:31UH UM, IF YOU ARE INTERESTED IN

03:34TESTIFYING IN PERSON, PLEASE

03:35ADD YOUR NAME TO THE SIGN UP

03:37SHEET NEAR THE ENTRANCE TO THE

03:39CHAMBER.

03:40IF YOU'RE LOOKING TO TESTIFY

03:41VIRTUALLY, PLEASE EMAIL OUR

03:42CENTRAL STAFF LIAISON CHRISTIAN

03:44CHAN AT CAR ISH.

03:48MCCUE HAND AT BOSTON.COM FOR

03:51THE LINK AND YOUR NAME WILL BE

03:52ADDED TO THE LIST.

03:55TODAY'S HEARING IS ON DOCKET

03:56NUMBER 0586.

03:59ORDER FOR A HEARING TO REVIEW

04:01DISCREPANCIES BETWEEN MARKET

04:02VALUE AND TAX ASSESSED VALUE

04:04FOR RESIDENTIAL PROPERTIES IN

04:05THE CITY OF BOSTON AND TO

04:07EVALUATE THE CITY'S TAX

04:09ASSESSMENT PRACTICES.

04:10THIS MATTER WAS SPONSORED BY

04:12COUNCILORS MARY CULPEPER, ERIN

04:14MURPHY AND BRIAN WORRELL AND

04:16WAS REFERRED TO THE COMMITTEE

04:17ON MARCH 18TH, 2026.

04:20UH, TODAY UH WE'LL HAVE TWO

04:23PANELS.

04:24THE FIRST PANEL WE'RE JOINED BY

04:26INTERIM COMMISSIONER

04:27OF ASSESSING IS INTERIM STILL

04:28HAS THAT OKAY.

04:29SO THE INTERIM COMMISSIONER

04:31OF ASSESSING HELEN WANG UH THE

04:33SECOND PANEL WE WILL HAVE CHRIS

04:36UH, LEHMAN UH, THE BOARD MEMBER

04:38FOR THE SMALL PROPERTY OWNERS

04:40ASSOCIATION AND REMOTELY WE'LL

04:41HAVE UH, ASSOCIATE PROFESSOR

04:44RUCHI SINGH, UH, FROM THE TERRY

04:46COLLEGE OF BUSINESS, UNIVERSITY

04:48OF GEORGIA.

04:48SHE'S AN ASSOCIATE PROFESSOR IN

04:51THE REAL ESTATE PROGRAM.

04:52UM, BEFORE WE HEAR FROM OUR

04:54PANELISTS, I'D LIKE TO GIVE MY

04:56COLLEAGUES I'M JOINED, UH,

04:57TODAY BY THE LEAD SPONSOR,

04:59COUNSELOR CULPEPER.

05:02AND, UH, IN ORDER OF ARRIVAL, I

05:04BELIEVE COUNCILOR FLYNN AND

05:05THEN COUNCILOR FITZGERALD.

05:07SO, UH, I'D LIKE GIVE ROOM FOR,

05:10UM, A SHORT OPENING.

05:12UM, AND KNOW SET THE CLOCK IF

05:14YOU WANT.

05:15I WE'LL HAVE THREE MINUTES EACH

05:16FOR AN OPENING IF THAT WORKS

05:17FOR YOU.

05:18OKAY, WELL, I'LL START THE

05:21CLOCK AND.

05:21KEEP TRACK.

05:22>> WHENEVER YOU'RE READY.

05:23THANK YOU.

05:24CHAIR WEBER.

05:25HOLDING THIS HEARING.

05:26I WANT TO THANK THE.

05:27ADMINISTRATION OF THE PANELISTS

05:29AND MEMBERS OF THE PUBLIC

05:33PUBLIC FOR JOINING US TODAY.

05:35I THANK MY COLLEAGUES FOR.

05:36JOINING US.

05:38COUNCILOR FLANDERS.

05:39COUNCILOR FITZGERALD.

05:41I FOLLOWED THIS HEARING ORDER

05:42BECAUSE.

05:43I WANT TO BETTER UNDERSTAND

05:44WHERE THE VOICES PROPERTY

05:46ASSESSMENT SYSTEM IS ACCURATELY

05:49AND EQUITABLY VALUING

05:51RESIDENTIAL PROPERTIES ACROSS

05:52THE.

05:54FULL SPECTRUM OF OUR HOUSING

05:56MARKET.

05:57PROPERTY TAXES ARE BASED ON

05:58ASSESSED VALUE IN THE CITY'S

06:01ANNUAL VALUATION PROCESS IS

06:02INTENDED TO APPROXIMATE FAIR

06:05MARKET VALUE.

06:06THE DATA THAT PROMPTED THIS

06:08HEARING RAISES SOME IMPORTANT

06:10QUESTIONS, ESPECIALLY WHEN

06:12YOU'RE LOOKING AT THE LOWEST

06:14PRICE SINGLE FAMILY SALES AND

06:15THE HIGHEST PRICE RESIDENTIAL

06:17SALES OVER MULTIPLE YEARS.

06:20WITH SEE A FAIRLY CONSISTENT

06:25DIFFERENCE AND THE DATA SET

06:27PROVIDED TO US THE 20 LOWEST

06:30PRICED SINGLE FAMILY HOMES SOLD

06:32IN 2022 WERE ASSESSED AT A

06:34WEIGHTED AVERAGE OF ABOUT 105%

06:38OF THEIR SALE PRICE.

06:39WITH 2023 IT WAS ABOUT 103% FOR

06:432024 APPROXIMATELY 95.5% ON THE

06:48HIGH END.

06:49THAT'S WHY WE'RE HERE TODAY.

06:51THE PATTERN LOOKS VERY

06:53DIFFERENT.

06:54THE 20 HIGHEST PRICED

06:56RESIDENTIAL SALES WERE ASSESSED

06:58AT APPROXIMATELY 80% OF THIS

07:00SALES IN BOTH THE 23 AND 24

07:03DATA SETS.

07:04THAT FIGURE ROSE TO

07:06APPROXIMATELY 68% FOR THE

07:09HIGHEST PRICE 2025 SALES.

07:12THE INDIVIDUAL EXAMPLES IN

07:14BOSTON THAT MAKE THESE

07:15DIFFERENCES PARTICULARLY.

07:17STRIKING THE GLOBE HIGHLIGHTED

07:2059 COMMONWEALTH APP, WHICH SOLD

07:21FOR $21 MILLION BUT CARRIED AN

07:24ASSESSED VALUE OF $12.5

07:27MILLION.

07:29THAT'S ONE OF THE REASONS WHY

07:30WE'RE HERE TODAY.

07:31THE UNDERLYING DATA SET

07:32CONTAINS PROPERTIES WHERE THE

07:34GAP IS EVEN LARGER, INCLUDING A

07:37$15 MILLION COMMONWEALTH AVENUE

07:38SALE ASSESSED THAT APPROXIMATE

07:40.

07:40CAN YOU BELIEVE IT?

07:43$4.4 MILLION.

07:45JUST SAY THAT AGAIN THAT $15

07:46MILLION COMMONWEALTH AVENUE

07:47SALE ASSESSED THAT $4.4

07:50MILLION.

07:51TODAY'S HEARING IS AN

07:52OPPORTUNITY TO UNDERSTAND WHY

07:54WE ARE SEEING THAT PATTERN.

07:56WHETHER THE COMPARISON BEING

07:57PRESENTED TO US IS AN

07:59APPROPRIATE WAY TO EVALUATE

08:01ASSESSMENT EQUITY AND IF THERE

08:04IS A PROBLEM, WHAT CHANGES THE

08:05CITY CAN MAKE TO ENSURE THAT

08:07EVERY PROPERTY OWNER IS TREATED

08:10FAIRLY AND EQUITABLY?

08:11THANK YOU.

08:12>> MR CHAIR.

08:13THANK YOU.

08:14UH, COUNCILOR FLYNN.

08:17THANK YOU, MR CHAIR.

08:18AND THANK YOU TO.

08:21COUNCILOR COLE PEPPER FOR

08:21BRINGING THIS.

08:25DEBATE BEFORE US.

08:27IT'S INCREDIBLY IMPORTANT.

08:30THAT WE DISCUSS IT AND LEARN AS

08:32MUCH AS WE CAN.

08:34SO I DO WANT TO SAY THANK YOU

08:37TO COUNCILOR COLE PEPPER FOR

08:38HIS LEADERSHIP.

08:40I WANT TO SAY THANK YOU TO THE

08:43ACTING UM, ASSESSING

08:44COMMISSIONER FOR FOR BEING HERE

08:46AS WELL.

08:47UH, COMMISSIONER WONG, UH,

08:49THANK YOU.

08:50AND I DO KNOW YOU COME FROM A

08:52WONDERFUL FAMILY DEDICATED TO

08:54PUBLIC SERVICE.

08:55SO I WANT TO ACKNOWLEDGE YOUR

08:57FAMILY'S COMMITMENT TO, UM TO

09:01HELPING PEOPLE IN OUR CITY.

09:06I WANT TO MAKE SURE THAT

09:08RESIDENTS KNOW EXACTLY WHAT THE

09:12RULES ARE.

09:15HOW TAXES PROPERTY TAXES ARE

09:18DETERMINED, HOW MUCH THE CITY

09:21CAN INCREASE PROPERTY TAXES

09:24BASED ON THE INCREASE OF THE

09:27VALUE OF YOUR HOUSE AND ALSO

09:30WANT TO ASK AND FIND OUT SOME

09:33MORE INFORMATION.

09:34WHY DO SOME PEOPLE'S HOUSE

09:38RESIDENTS.

09:38SUCH AS REVEREND REVEREND COLE

09:40PEPPER MENTIONED UM THAT HAVE

09:44DECREASED IN VALUE?

09:46BUT I ALSO KNOW THAT SOME

09:47PEOPLE DON'T THEY HAVEN'T HAD

09:50ANY INCREASE IN THEIR PROPERTY

09:52TAX AND OTHER PEOPLE HAD

09:54SIGNIFICANT INCREASES IN THEIR

09:56PROPERTY TAXES.

09:58I JUST WANT TO I JUST WANT US

10:00TO BE ON THE SAME PAGE.

10:03UM TRANSPARENT, ACCOUNTABLE,

10:07ENSURING THAT WE'RE PROVIDING

10:08POSITIVE LEADERSHIP AND

10:10EVERYBODY KNOWS WHAT THE RULES

10:11ARE.

10:12SO THEY'RE NOT SURPRISED WHEN

10:13THEY SEE A TAX BILL AT THE

10:16BEGINNING OF THE YEAR BECAUSE

10:18IT IT IS IMPACTING WORKING

10:20CLASS FAMILIES AND SENIORS WHEN

10:22THEY SEE A 13% OR 10% INCREASE

10:27IN THEIR TAXES ESPECIALLY WHEN

10:29THEY'RE ON FIXED INCOME.

10:31NOT SURE HOW LONG WE CAN

10:32CONTINUE DOING THAT TO

10:34RESIDENTS.

10:35RESIDENTS ARE STRUGGLING AND A

10:3913% TAX INCREASE OR A 10% TAX

10:42INCREASE OVER THE LAST TWO

10:44YEARS AND THEN ANOTHER

10:46POTENTIAL INCREASE.

10:48IT'S DEVASTATING WORKING CLASS

10:50FAMILIES.

10:51UH, FAMILIES ON FIXED INCOME

10:54AND HOMEOWNERS THAT MADE ON

10:55MORE THAN MADE IT ON LIKE A

10:57DOUBLE UM A TWO FAMILY BECAUSE

11:00THEY HAVE TO PASS THAT TAX

11:03INCREASE ON TO THE RESIDENTS

11:05OBVIOUSLY ON TO THE RENTERS.

11:07THOSE ARE SOME OF THE QUESTIONS

11:09I WILL ASK.

11:09BUT AGAIN WANT TO SAY THANK YOU

11:11TO THE UM, ACTING ASSISTANT

11:13COMMISSIONER FOR BEING HERE.

11:14THANK YOU, MR CHAIR.

11:15OKAY.

11:16>> THANK YOU.

11:17COUNCILOR FITZGERALD.

11:19THANK YOU.

11:20>> CHAIR.

11:20>> UH, I WOULD LIKE TO.

11:21THANK, UH, COUNCIL.

11:22MEMBER FOR BRINGING.

11:23>> THIS.

11:23FORWARD AS WELL.

11:24UH, AND THANK YOU TO ACTING

11:25COMMISSIONER HOGAN, UH, FOR

11:27BEING HERE TODAY TO TO EDUCATE

11:28US ON, UH, A LITTLE BIT MORE

11:30OF THIS.

11:30AS YOU CAN IMAGINE, WE GOT LOTS

11:31OF CALLS IN THE LAST TWO YEARS

11:33WHEN WE HAD, UH, BOTH, UH,

11:34DOUBLE DIGIT INCREASES IN

11:36PROPERTY TAX AND I.

11:37>> KNOW FOR.

11:38MYSELF IN DORCHESTER WHICH IS

11:39PREDOMINANTLY MIDDLE AND LOWER

11:40CLASS FAMILIES, WE GOT A LOT

11:42OF UH INCOMING ABOUT THEIR

11:44TAXES AS THEY CAME IN.

11:45AND SO, UM, IT'S SOMETHING THAT

11:47I KNOW THAT IT'S EASY TO GET

11:49LOST IN THE MINUTIA OF ALL THE

11:50NUMBERS AND DETAILS AND I

11:52BELIEVE WHEN WE ASKED THIS

11:53QUESTION EITHER EARLIER THIS

11:55YEAR ORIENTED DURING LAST YEAR,

11:58UH, THE ANSWER WE GOT IS IT'S

11:59MORE OF AN ART THAN A SCIENCE

12:01AND THAT THAT JUST DOESN'T.

12:03UM, YOU KNOW WHEN YOU GO TO

12:05CONSTITUENTS AND TELL THEM THAT

12:06THAT THAT DOESN'T FLY RIGHT.

12:07AND SO WHAT I HOPE TO LEARN

12:09TODAY IS UH, MORE OF AN

12:11UNDERSTANDING ABOUT HOW UH,

12:13THEY ARE APPLIED, UH, HOW THEY

12:15ARE APPLIED FAIRLY ACROSS ALL

12:16UH, SOCIOECONOMIC SPECTRUMS.

12:19UM AND UH REALLY GIVE HELP US

12:22GIVE A BE ABLE TO GIVE A BETTER

12:24ANSWER UH TO THE COMMUNITY AND

12:26AT LEAST IF MAYBE IT WON'T BE

12:27THE ANSWER THEY WANT TO HEAR OR

12:29MAYBE THROUGH THIS PROCESS WE

12:30CAN UNDERSTAND WHERE WE'RE

12:31LACKING AND CAN FILL IN THOSE

12:32GAPS.

12:32SO, UH, THANK YOU VERY MUCH FOR

12:34BEING HERE TO EDUCATE US.

12:35THANK YOU JILL.

12:37OKAY.

12:38>> THANK YOU VERY MUCH.

12:38I'M JUST, UH, BRIEFLY FROM THE

12:41FROM THE CHAIR.

12:42UH, YOU KNOW, I THINK, UH, THIS

12:44IS A I WANT TO THANK

12:45COUNCILOR CULPEPER FOR FILING

12:46THIS.

12:47I DON'T THINK I'VE EVER HAD TO

12:48LEARN SO MUCH NEW INFORMATION

12:50FOR ONE HEARING.

12:52UH, YOU KNOW, WE TALK ABOUT,

12:53UH, I THINK WE'LL HEAR IN THE

12:55HEARING ABOUT, UH, VERTICAL

12:57EQUITY, UH, WHICH MY

12:59UNDERSTANDING OF IT IS WE HAVE

13:01WE'VE ACHIEVED VERTICAL EQUITY

13:03WHERE, UH, THE ASSESSED PRICE

13:05OF A HOME, UH, IS IN LINE WITH

13:08THE SALE PRICE ACROSS THE BOARD

13:10AND IT'S A YOU KNOW, YOU'RE

13:11GOING TO FIND THAT EITHER WE'RE

13:13ASSESSING OVER OR UNDER WITHIN

13:14A CERTAIN PERCENTAGE OF WHAT

13:16THE SALE PRICE WOULD BE AND IT

13:17DOESN'T MATTER WHAT THE VALUE

13:18OF THE HOME IS.

13:20UH, I LEARNED ABOUT REGRESSIVE

13:21CITY.

13:23SO IF WE HAVE REGRESSIVE CITY

13:24WHAT THAT MEANS IS WE ARE

13:26TAXING LOWER VALUE HOMES AT A

13:28HIGHER PROPORTIONAL RATE THAN

13:31THE THAN THE THE UH THE HIGHER

13:33VALUE HOMES.

13:34SO THAT MEANS THAT THE BURDEN

13:36IS UNFAIRLY BEING PLACED ON

13:38LOWER VALUE HOMES.

13:39IF WE HAVE PROGRESSIVITY WE ARE

13:41TAXING THE HIGHER VALUE HOMES

13:43AT A HIGHER RATE THAN THE LOWER

13:47VALUE HOMES.

13:48AND SO UH, YOU KNOW, CERTAINLY

13:49UH, YOU KNOW, GIVEN BOSTON'S,

13:52YOU.

13:52>> KNOW.

13:53TROUBLED HISTORY, YOU KNOW,

13:54WITH UH, UH, DISCRIMINATION AND

13:58INSTITUTIONAL RACISM AND WITH

14:00PRACTICES LIKE REDLINING YOU

14:02READ THE THE BOSTON GLOBE

14:04EDITORIAL AND YOU YOU THINK,

14:05OKAY, THIS IS ANOTHER EXAMPLE

14:08OF UH, YOU KNOW, THERE'S THIS

14:09IS A REGRESSIVE SYSTEM THAT IS

14:11UH, WE'RE ALLOWING TO HARM LOW

14:14YOU KNOW, SORT OF LOW INCOME

14:15LOW VALUE HOMEOWNERS.

14:17UH, BUT I THINK WHEN YOU DIG A

14:19LITTLE DEEPER IT'S THE STORY IS

14:20NOT AS CLEAR.

14:22UH, YOU KNOW, IF YOU I THINK

14:24RON ROCO WAS THE COMMISSIONER

14:25OF ASSESSING DID IT AN ANALYSIS

14:27AND UH, IF YOU LOOK AT THE THE

14:31THE THE THE SYSTEM FOR THE

14:32WHOLE CITY THERE IS A SLIGHT

14:34AMOUNT OF REGRESSIVE CITY SO WE

14:36ARE TAXING LOWER UH, VALUE

14:38HOMES AT A SLIGHTLY HIGHER

14:40LEVEL BUT THAT IS THAT MIGHT

14:42THAT MEANS IT WOULD BE

14:44REGRESSIVE IF WE TOOK NO

14:45ACTIONS TO REMEDY THAT.

14:47AND SO NUMBER ONE IS WE HAVE A

14:49HOMESTEAD EXEMPTION A

14:50RESIDENTIAL EXEMPTION WHICH

14:52ALLOWS PEOPLE TO WRITE OFF

14:54ESSENTIALLY LIKE $350,000 IF

14:57I'M UNDERSTANDING THIS

14:58CORRECTLY OF THEIR HOME VALUE

15:00WHICH CONVERTS ARE IN THE TAX

15:02BILLS, THEY'RE ACTUALLY

15:03ACCORDING TO UH, MR ACCOUNT.

15:05WE'RE ACTUALLY A PROGRESSIVE

15:07CITY.

15:08UH.

15:09>> BECAUSE THAT THAT THAT FLAT

15:11AMOUNT THAT, YOU KNOW,

15:13OVERWHELMINGLY BENEFITS LOWER

15:16VALUE HOMES.

15:17SO UH, I JUST I THINK THERE'S

15:18YOU KNOW, THIS AN INCREDIBLY

15:20COMPLEX TECHNICAL FIELD AND I

15:22LOOK FORWARD TO THE

15:24CONVERSATION AND I THANK MY

15:26COLLEAGUES FOR BRINGING THIS

15:27DISCUSSION, UH, HERE AND SO I

15:29DON'T SEE ANY OF MY COLLEAGUES

15:31UH, SO UH, WITH THAT SAID UH,

15:34INTERIM COMMISSIONER WONG UH,

15:35THE FLOOR IS YOURS.

15:36THANK YOU.

15:37COUNCILOR, TO CLOSE.

15:41UM.

15:42>> YOU PRESENTED BASICALLY

15:43EVERYTHING.

15:43I WAS CLOSE FRIENDS SO.

15:44BUT I'LL REITERATE EVERYTHING

15:45AGAIN.

15:46UM.

15:48>> GOOD AFTERNOON.

15:49FOR THE RECORD, MY NAME IS

15:50HELEN WONG.

15:51I AM INTERN COMMISSIONER FOR

15:52THE CITY OF BOSTON DEPARTMENT.

15:54I'M HERE TO DISCUSS DOCKET 0586

15:57REGARDING MY OFFICE'S

15:58ASSESSMENT PRACTICES IN

16:00EVALUATING RESIDENTIAL

16:01PROPERTIES.

16:01THIS TOPIC IS DEEPLY IMPORTANT

16:03TO MY DEPARTMENT.

16:05MY STAFF OF OVER 50 LIVE IN

16:07EVERY NEIGHBORHOOD OF BOSTON

16:08FROM EAST BOSTON TO HYDE PARK.

16:10THEY'RE IN OUR NEIGHBORHOODS

16:11EVERY DAY SPEAKING WITH

16:13RESIDENTS AND BUSINESS OWNERS

16:14TO ENSURE OUR PROPERTY DATA IS

16:16ACCURATE, FAIR AND EQUITABLE.

16:21ANNUALLY OUR DEPARTMENT VALUES

16:22OVER 190,000 PARCELS AND AN

16:25ASSESSED VALUATION OF OVER 295

16:27BILLION PROPERTY TAXES

16:29GENERATED OVER 3.5 BILLION IN

16:31REVENUE FOR THE CITY IN FISCAL

16:32YEAR 26.

16:33MY OFFICE IS ALSO RESPONSIBLE

16:35FOR EXCISE TAXES ON BOATS AND

16:36MOTOR VEHICLES, ADMINISTERING

16:38THE PILOT PROGRAM AND TAX

16:40AGREEMENTS.

16:40WE ALSO MANAGE PERSONAL

16:42EXEMPTIONS SUCH AS THE

16:43RESIDENTIAL EXEMPTION AND

16:45SENIOR EXEMPTION PROGRAMS.

16:48UNDER STATE REGULATORY

16:50GUIDELINES, WE ARE REQUIRED TO

16:52INSPECT EACH PROPERTY AT LEAST

16:54ONCE EVERY TEN YEARS.

16:55THE PRIMARY GOAL OF THESE

16:57INSPECTIONS IS TO ENSURE OUR

16:58PROPERTY DATA IS ACCURATE.

17:00AS I MENTIONED EARLIER, MY

17:01STAFF IS OUT IN THE FIELD EVERY

17:02DAY COLLECTING THIS INFORMATION

17:04,COMPLETING OVER 470,000

17:07INSPECTIONS OVER THE PAST

17:08DECADE.

17:09WE ALSO LEVERAGE TECHNOLOGY TO

17:11VERIFY PROPERTY DETAILS

17:12UTILIZING TOOLS LIKE STREET

17:14IMAGERY, ORTHO MAPS AND REAL

17:16ESTATE LISTING SERVICES.

17:18ALL OF THIS INFORMATION IS

17:19ENTERED INTO OUR COMPUTER

17:21ASSISTED IRS APPRAISAL SOFTWARE

17:23KNOWN AS CAMERA, WHICH HELPS US

17:25MANAGE DATA AND VALUE

17:27PROPERTIES ACROSS THE CITY.

17:28KEY DETAILS WE TRACK INCLUDE

17:30BUILDING STYLE LIVING AREA,

17:32SQUARE FOOTAGE, PARKING SPACES

17:35AND THE NUMBER OF KITCHENS IN

17:36THE HOUSE AND BEDROOMS TO NAME

17:38A FEW.

17:40WE ALSO ASSIGN EACH PROPERTY TO

17:42AN ASSESSING DISTRICT PER

17:43REGULATORY GUIDELINES.

17:44THESE DISTRICTS ARE COMPLETELY

17:46DISTINCT FROM STANDARD ZIP

17:47CODES, WARDS, VOTING DISTRICTS

17:50OR NEIGHBORHOOD BOUNDARIES.

17:51WE USE THEM TO ENSURE OUR

17:53MODELS FACTOR LOCATION DIRECTLY

17:54INTO RESIDENTIAL.

17:55VALUATIONS SO THAT MARKET

17:57TRENDS IN BACK BAY, FOR

17:58INSTANCE, DON'T ACTUALLY SKEW

18:00PROPERTY VALUES AND HYDE PARK.

18:05AT THE SAME TIME WE'RE

18:06COLLECTING DATA.

18:07OUR TEAM IS REVIEWING ALL

18:09RECENT PROPERTY SALES AND

18:10TRANSFERS.

18:11THIS REVIEW SERVES TWO MAIN

18:13PURPOSES.

18:14FIRST, IT ALLOWS US TO

18:16ESTABLISH PROPERTY OWNERSHIP

18:17UNDER STATE LAW.

18:18STATE REGULATIONS REQUIRE US TO

18:21DETERMINE THE OWNER OF RECORD

18:22AS OF JANUARY 1ST KNOWN AS THE

18:24LEASE DATE FOR THE UPCOMING

18:25FISCAL YEAR.

18:26SO FOR EXAMPLE, JANUARY 1ST,

18:282025 IS A LEAN DATE FOR FISCAL

18:31YEAR 26 UNDER STATE GUIDELINES.

18:33THAT MEANS OUR SALES ANALYSIS

18:35MUST USE DATA FROM THE CALENDAR

18:37YEAR PRIOR TO JANUARY 1ST LINE

18:39DATE.

18:40SO FOR FISCAL YEAR 26 WE

18:42ANALYZE SALES FROM CALENDAR 24

18:44EXCLUDING ANY SALES THAT

18:45OCCURRED IN 25 CALENDAR YEAR

18:482025.

18:49SECOND.

18:50>> REVIEWING THESE TRANSACTIONS

18:52HELPS US MEASURE BROADER MARKET

18:53TRENDS.

18:54UNDER STATE REGULATIONS WE ONLY

18:56INCLUDE ARMS LANDS TRANSACTIONS

18:59,FAIR CASH MARKET SALES

19:00BETWEEN A WILLING BUYER AND A

19:01WILLING SELLER.

19:03WE SCREEN OUT NORM NON-FARM

19:04LENGTH TRANSACTS TRANSFERS SUCH

19:07AS A PARENT SELLING HOME TO A

19:09CHILD AT A STEEP DISCOUNT, A

19:10FORCED FORECLOSURE SALE BECAUSE

19:12THEY DON'T REFLECT TRUE MARKET

19:13VALUE.

19:16OUR SALES ANALYSIS ONCE OUR

19:18SALES ANALYSIS IS COMPLETE WE

19:20FEED ALL VALID SALES AND

19:22PROPERTY CHARACTERISTICS INTO A

19:24STATISTICAL MODEL CALLED A

19:25MULTIPLE LINEAR REGRESSION TO

19:27ESTABLISH RESIDENTIAL VALUES

19:28CITYWIDE.

19:29OUR MODEL CALCULATES HOW MUCH

19:31EACH FEATURE CONTRIBUTES TO A

19:32HOME VALUES FINAL PRICE.

19:34THE PROPERTY VALUE IS OUR

19:36TARGET OR DEPENDENT.

19:36VARIABLE WHILE ATTRIBUTES LIKE

19:39LIVING AREA, BEDROOMS AND

19:40LOCATION SERVE AS THE INPUTS OR

19:42PREDICTORS.

19:43IF YOU LOOK AT ONE OF THE

19:44VARIABLE CHARTS WITH BLUE DOTS,

19:46THIS PLOTS SQUARE FOOTAGE

19:48AGAINST SALES PRICE.

19:49THE MODEL DRAWS A LINE OF BEST

19:51FIT RIGHT THROUGH THE CENTER

19:52OF THOSE DATA POINTS.

19:53POINTS SELLING FAR ABOVE OR

19:55BELOW THAT LINE.

19:56ARE OUTLIERS.

19:56AND THE MODEL PREVENTS THOSE

19:58EXTREME SALES FROM DISTORTING

20:00OVERALL VALUES.

20:01WHEN WE ADD DOZENS OF PROPERTY

20:04ATTRIBUTES AT ONCE, THE MODEL

20:05DOES HAVE THE EXACT SAME

20:06PATTERN SEEKING WORK ACROSS

20:09MULTIPLE DIMENSIONS

20:10SIMULTANEOUSLY.

20:10AS WE CAN SEE IN THE TWO

20:12VARIABLE PLANE GRAPH, BY

20:13RUNNING OUR DATA THROUGH

20:15REGRESSION MODELS WE FILTER OUT

20:16THE NOISE IN INDIVIDUAL

20:18PROPERTY TRANSACTIONS.

20:19WHETHER A BUYER WILL PAYS FOR A

20:21SPECIFIC SCHOOL DISTRICT, A

20:22SELLER RUSHES A SALE DUE TO A

20:25DIVORCE OR SOMEONE PAYS A

20:27PREMIUM TO LIVE IN THE

20:28AFOREMENTIONED OF A SEVEN TIME

20:29SUPER BOWL CHAMPION.

20:33EACH YEAR WE CONTINUALLY

20:35CALIBRATE OUR MODELS TO REFLECT

20:36CURRENT MARKET TRADITION

20:38CONDITIONS AND PRODUCE ACCURATE

20:39ASSESSED VALUES TO GUARANTEE

20:41THESE VALUATIONS ARE FAIR.

20:43WE RUN A RIGOROUS BATTERY

20:45STATISTICAL TESTS.

20:46WHAT YOU SEE ON THE SCREEN IS

20:47JUST A SAMPLE OF THE METRICS WE

20:48MONITOR.

20:49THESE INCLUDE A MEDIAN RATIO

20:50TEST THE COEFFICIENT

20:52OF DISPERSION ALSO KNOWN AS COD

20:53TO MEASURE UNIFORMITY AND THE

20:55PRICE RELATED DIFFERENTIAL TO

20:57MEASURE VERTICAL EQUITY WHICH

20:58I'LL COVER SHORTLY.

20:59BEYOND ART BEYOND OUR INTERNAL

21:01CHECKS WE OPERATE UNDER STRICT

21:03STATE OVERSIGHT THE BUREAU

21:04OF LOCAL ASSESSMENT WITHIN THE

21:06MASSACHUSETTS DEPARTMENT

21:07OF REVENUE OVERSEES VALUATION

21:09STANDARDS ACROSS 351 CITIES AND

21:11TOWNS IN THE COMMONWEALTH.

21:12THE RESPONSIBILITY IS TO ENSURE

21:15FAIRNESS AND EQUITY IN LOCATION

21:17PROPERTY VALUATION.

21:18EVERY YEAR MY OFFICE SUBMITS

21:19OUR DATA SET TO THE BUREAU

21:21OF LOCAL ASSESSMENT FOR REVIEW.

21:22THE STATE MUST CERTIFY OUR

21:24VALUES BEFORE THE CITY CAN SET

21:25TAX RATE OR ISSUE BILLS, AND

21:26I'M PROUD TO REPORT THE SYSTEM

21:28THE CITY CONSTANTLY PASSES

21:29THOSE REVIEWS.

21:33BEYOND STATE REQUIREMENTS.

21:35WE LEVERAGE THE LINCOLN

21:35INSTITUTE OF LAND POLICIES

21:37ANALYTICAL TOOL TO EVALUATE

21:39VERTICAL EQUITY, ENSURING LOWER

21:41PRICED HOMES ARE NOT OVER

21:42ASSESSED RELATIVE TO HIGHER

21:43PRICED PROPERTIES.

21:44THE SOFTWARE APPLIES BOSTON'S

21:46ESTABLISHED INDUSTRY STANDARDS

21:48AND MODERN STATISTICAL

21:50METHODOLOGIES INCLUDING GINI

21:51DISTRIBUTION MEASURES, SPEARMAN

21:53RANK COALITION'S PRICE

21:55DIFFERENTIAL AND THE

21:56COEFFICIENT OF PRICE RELATED

21:57BIAS.

21:57OUR TEAM ROUTINELY RUNS

21:59BOSTON'S PROPERTY DATA THROUGH

22:00THE SYSTEM, AND THE CITY

22:02CONSTANTLY PASSES ALL

22:03STATISTICAL EQUITY TESTS WHILE

22:04FULLY MEETING INDUSTRY

22:07BENCHMARKS CRITERIA.

22:11ONCE OUR ANALYSIS IS COMPLETE,

22:13A FINAL ASSESSED VALUE IS

22:14GENERATED FOR EVERY PROPERTY

22:16ACROSS THE CITY TO CIRCLE BACK

22:17.

22:18ASSESSED VALUES ARE DERIVED

22:19FROM MARKET PATTERNS DURING A

22:21FIXED TIME PERIOD USING

22:23SPECIFIC PROPERTY DATA POINTS.

22:25AS YOU CAN SEE FROM THE

22:26EXAMPLES ON THE SCREEN, EVEN

22:28SIMILAR PROPERTIES SOLD WITHIN

22:29THE SAME TIME FRAME CAN YIELD

22:31VASTLY DIFFERENT ASSESSED

22:32VALUES AND TAX BILLS TO CUSHION

22:34THE FINANCIAL IMPACT ON

22:36RESIDENTS.

22:36THIS COUNCIL VOTES EVERY YEAR

22:38ON TWO CRITICAL RELIEF MEASURES

22:39THE TAX RATE SHIFT AND THE

22:41RESIDENTIAL EXEMPTION.

22:43FIRST, WITHOUT THE MAXIMUM TAX

22:45RATE SHIFT, HOMEOWNERS WOULD

22:46PAY SIGNIFICANTLY HIGHER TAXES

22:48AT A RATE OF $15.40 PER

22:51THOUSAND.

22:52BY APPROVING THE MAXIMUM

22:52ALLOWABLE SHIFT, THE

22:54COUNCIL SHIFTS A LARGER PORTION

22:55OF THE TAX BURDEN ON THE

22:56COMMERCIAL PROPERTIES, LOWERING

22:58THE RESIDENTIAL TAX RATE TO

23:00$2,012.40 PER THOUSAND.

23:02SECOND.

23:03>> THE RESIDENTIAL EXEMPTION

23:04PROVIDES DIRECT RELIEF TO

23:05QUALIFIED OWNER OCCUPANTS BY

23:07DEDUCTING A FLAT AMOUNT OFF

23:09THEIR PROPERTY ASSESSMENT

23:10BECAUSE AS DOLLAR DEDUCTION IS

23:13IDENTICAL FOR EVERYONE, IT

23:14FUNCTIONS AS A PROGRESSIVE TAX

23:16MEASURE DELIVERING THE HIGHEST

23:17PERCENTAGE OF SAVINGS TO LOWER

23:19AND MIDDLE VALUE HOMES IN

23:20FISCAL YEAR 26.

23:22THIS TAX SAVINGS AMOUNTS

23:26OF $4,353.74 AND ACTUAL TAX

23:27DOLLARS.

23:28HOWEVER, NO MODEL IS PERFECT.

23:30FOR INSTANCE, PROPERTY

23:31ATTRIBUTES MIGHT BE OUTDATED IF

23:33WE HAVEN'T INSPECTED THE

23:34PROPERTY IN A WHILE.

23:34THIS IS WHY STATE LAW PROVIDES

23:36AN ABATEMENT PROCESS ALLOWING

23:38PROPERTY OWNERS TO CONTEST

23:39THEIR VALUATION.

23:40THE ABATEMENT WINDOW RUNS FROM

23:42JANUARY 1ST TO FEBRUARY 1ST.

23:44DURING THIS TIME PROPERTY

23:45OWNERS CAN SUBMIT APPLICATIONS

23:47THAT SHARE THEIR CONCERNS.

23:48WE VERIFY PROPERTY DATA POINTS

23:50AND ISSUE A DECISION WITHIN

23:51THREE MONTHS.

23:52IF A TAXPAYER REMAINS

23:55UNSATISFIED, THEY HAVE THE

23:56RIGHT TO APPEAL UNDER

23:57MASSACHUSETTS GENERAL LAW.

23:59ON AVERAGE, FEWER THAN 2%

24:00OF PROPERTY OWNERS FILE AN

24:01ABATEMENT AND FEWER THAN 1%

24:03APPEAL OUR DECISIONS TO THE

24:04APPELLATE TAX BOARD.

24:07I ALSO WANT TO HIGHLIGHT THAT

24:08THANKS TO THE COMBINED TAX

24:09RELIEF MEASURES PASSED BY THE

24:11COUNCIL, BOSTON RESIDENTS PAY

24:12LESS IN PROPERTY TAXES ON

24:14AVERAGE THAN OUR NEIGHBORS ON

24:16AVERAGE, SINGLE FAMILY TAX

24:17BILLS REMAIN LOWER THAN THOSE

24:18OF MEDFORD, QUINCY, ARLINGTON

24:20AND NEWTON.

24:21PROVING THAT BOSTON PROVIDE

24:22HIGH QUALITY CITY SERVICES

24:23WHILE KEEPING RESIDENTIAL TAX

24:25BURDENS ON MOST AMONG THE MOST

24:26AFFORDABLE IN THE AREA.

24:30IN CLOSING, MY TEAM AND I LIVE

24:33HERE WORK HERE AND MANY OF US

24:34ARE PROPERTY OWNERS HERE.

24:36WE SEE FIRSTHAND THE MEASURE

24:38THE PRESSURE RISING PROPERTY

24:40TAXES PLACED ON HOUSEHOLDS DUE

24:41TO BROADER MARKET INCREASES.

24:43THAT IS WHY WE ACTIVELY PROMOTE

24:45TAX RELIEF PROGRAMS FOR OWNER

24:47OCCUPANTS.

24:48WE OFFER THE RESIDENTIAL

24:49EXEMPTION FOR OUR MOST

24:50VULNERABLE CONSTITUENTS.

24:51WE OFFER SENIOR EXEMPTIONS AND

24:52THANKS TO THIS COUNCIL WE

24:54RECENTLY EXPANDED INCOME AND

24:55ASSET LIMITS TO QUALIFIED MORE

24:57SENIORS.

24:58WE ALSO PROVIDE TARGETED

24:59EXEMPTIONS FOR VETERANS AND

25:00THEIR SURVIVING SPOUSES, WHO

25:02ACCOUNT FOR ROUGHLY HALF OF ALL

25:03PERSONAL EXEMPTIONS GRANTED,

25:05OUR TAXPAYER REFERRAL

25:06ASSISTANCE CENTER DIRECTLY

25:07ASSIST RESIDENTS AND

25:09IDENTIFYING ELIGIBLE PROGRAMS.

25:10WE ALSO WORK CLOSELY WITH THE

25:12EIGHT STRONG COMMISSION

25:12VETERANS SERVICES, THE BOSTON

25:14HOME CENTER AND THE CITY

25:16COUNCIL BODY TO SPREAD.

25:17>> THE WORD ABOUT THESE VITAL

25:18RESOURCES.

25:18THE ADMINISTRATION AND CITY

25:20COUNCIL HAVE WORKED

25:21HAND-IN-HAND TO DELIVER REAL

25:22RELIEF TO BOSTON RESIDENTS,

25:24MOST RECENTLY ADOPTING THE 41 D

25:26PROGRAM THAT INCREASES ASSET

25:28AND INCOME LIMITS FOR SENIORS

25:30EXEMPTION AND I LOOK FORWARD TO

25:31SEEING.

25:31>> THAT WORK TOGETHER.

25:32THANK YOU AND I'M HAPPY TO

25:34ANSWER ALL YOUR QUESTIONS.

25:36OKAY WELL THANK YOU.

25:38UH, JUST ANOTHER HEARING WHERE

25:40WE TALK ABOUT SPEARMAN'S RANK

25:41ORDER CORRELATION.

25:43UH, IT SEEMS LIKE EVERY DAY UM

25:45BUT SO UH, HOW ABOUT UH.

25:48EIGHT MINUTES FOR FIRST ROUND?

25:51UM, AND THEN I THINK, YOU KNOW,

25:53IF WE'LL HAVE A MOST LIKELY A

25:55SECOND ROUND I THINK SOME OF MY

25:56COLLEAGUES WILL BE JOINING US.

25:58SO COUNCILOR CULPEPER, YOU'RE

26:00UP AND THEN COUNCILOR FLYNN,

26:01COUNCILOR FISHER.

26:01THANK YOU TWO.

26:02FOR IN YOUR PRESENTATION IT

26:05EXPLAINS THAT THE CITY.

26:06USES A.

26:07COMPUTER ASSISTED MASS

26:09APPRAISAL SYSTEM INCORPORATING

26:13PROPERTY CHARACTERISTICS,

26:14LOCATION, CONDITION AND OTHER

26:18FACTORS.

26:18HOW DOES THAT HAPPEN?

26:20IS THAT WHAT YOUR STAFF IS

26:22DOING WHEN THEY'RE OUT IN THE

26:23NEIGHBORHOODS COMPILING THAT

26:26DATA OR THE DATA THAT GOES INTO

26:28THE COMPUTE WHERE DOES IT COME

26:29FROM?

26:30YEP.

26:31>> OH I'M LIVE SWEET.

26:33UM THANK YOU COUNCILOR.

26:35SO THIS DATA IS ESSENTIALLY

26:37COLLECTED.

26:38SO WE HAVE A PROPERTY RECORD

26:40CARD WITH PROBABLY 30 OR 40

26:42ATTRIBUTES THAT WE COLLECT.

26:44UM, PROPERTIES.

26:46TYPICALLY DON'T CHANGE THAT

26:47OFTEN.

26:48THEY DO CHANGE.

26:49BUT YOU KNOW, UM, IF HOUSE FROM

26:52LIKE 100 YEARS AGO IS PROBABLY

26:54GOING TO HAVE THE SIMILAR YOU

26:56KNOW, NUMBER OF BEDROOMS,

26:57NUMBER OF KITCHENS POTENTIALLY.

27:00UM BUT TO ACCOUNT FOR THOSE WE

27:02GO OUT IN THE FIELD IF A

27:03BUILDING PERMIT IS PULLED FOR

27:04AN ADDITIONAL KITCHEN WE'LL GO

27:05ON THE FIELD TO VERIFY THAT A

27:06KITCHEN IS.

27:06OVER THERE.

27:07FOR EXAMPLE.

27:08IF THEY CREATED AN.

27:10EXTRA LEVEL ON THE HOME, WE'LL

27:12GO OUT THERE AND WE'LL MAKE AN

27:13ADDITION ONTO.

27:13THAT FIELD CARD.

27:16SO THE CONDITIONS THAT I'M

27:17TALKING ABOUT THIS DATA THAT'S

27:19WHAT IS GOING INTO THE COMPUTER

27:22TO DETERMINE THE ASSESSMENT

27:25CORRECT.

27:26SO THERE ARE CERTAIN PROPERTY

27:27ATTRIBUTES.

27:28SO THERE ARE PROPERTY

27:29ATTRIBUTES THAT WE HAVE IN

27:30THERE.

27:30AND THEN WE ENTER THAT INTO THE

27:31SYSTEM AS WELL AS WITH OUR UM

27:34REGRESSION MODEL TO.

27:35GENERATE A VALUE.

27:36SO WITH THIS $15,000,020

27:39MILLION PROPERTY UM THAT'S THE

27:43ASSESSMENT AND IT'S IN THE DATA

27:45IN YOUR DATA WAS FAR LOWER THAN

27:48THE 400 TO $500,000 ASSESSMENT.

27:52HOW DOES THAT HAPPEN?

27:54THE $20 MILLION?

27:56YEAH, THERE WAS A $20 MILLION

27:58PROPERTY.

27:59THE $15 MILLION.

28:01I CAN GO DOWN THE LIST.

28:03UM.

28:04THE MORE EXPENSIVE PROPERTY.

28:07SO IF YOU GO DOWN THE LIST ON

28:09COMMON WITH HAVE.

28:12UM SALES PRICE OF 2121 MILLION

28:14WAS ASSESSED AT 12 MILLION

28:18VERSUS THREE 776.

28:20WAS.

28:21YEP 17.

28:23SO WHEN THESE TRANSACTIONS

28:25OCCUR COUNSELOR.

28:28UM I.

28:29DON'T THINK THAT WAS FROM MY

28:30DATA SET.

28:31IT IS THIS IS WHAT CAME OUT

28:33OF IT.

28:34I'M JUST ASKING YOU THE

28:35QUESTIONS ABOUT IS IT MORE

28:37DIFFICULT TO ASSESS $1 MILLION

28:40PROPERTY THAN IT IS A $400,000

28:43PROPERTY?

28:44IT SHOULD BE RELATIVELY THE

28:45SAME IF WE HAVE SIMILAR SALES

28:47IN THE AREA.

28:47SO ESSENTIALLY WE'RE LOOKING AT

28:49THE FOREST.

28:51SO IF WE HAVE SIMILAR

28:52PROPERTIES SELLING FOR $1

28:54MILLION THE MODEL SHOULD

28:56GENERATE SIMILAR WITH THE

28:58SIMILAR PROPERTY ATTRIBUTES.

28:59IT SHOULD COME OUT AROUND $1

29:01MILLION IF PROPERTIES SIMILAR

29:02ATTRIBUTES IN THE SAME LOCATION

29:04SELL FOR HALF $1 MILLION THE

29:06SAME OUTPUT SHOULD BE.

29:07COMING OUT.

29:09>> OF IT.

29:09SO WHEN YOU LOOK AT THE

29:10ASSESSED VALUES ON THE.

29:12>> ON THE SHEET.

29:14FOR PROPERTY OF THIS SO THE $21

29:19MILLION ASSESSED TO $12 MILLION

29:23AND IT'S ONLY A 59% UH OF THE

29:27SALES PRICE.

29:28HOW DO YOU GET TO THAT?

29:30WHEN YOU LOOK AT THE LESS

29:33EXPENSIVE PROPERTIES THEY'RE AT

29:36RIGHT ABOUT WHERE.

29:38THE SALES PERCENTAGE SHOULD BE

29:40OF THE SALES PRICE.

29:42AND SO HOW.

29:43WHEN YOU AND I CAN READ THEM

29:45OFF 776 YEAH.

29:47>> DO YOU HAVE THE SALES DATA

29:48ON ONE OF THEM?

29:49YEAH.

29:49>> SO IS 76 VERSUS STREET 17

29:52MILLION ASSESSED AT 15 MILLION.

29:55THERE'S TWO COMMONWEALTH YEP.

29:58AVENUE A.

29:60SIX UH, SALES PRICE WAS 15

30:03MILLION.

30:03IT WAS SET AT 4 MILLION.

30:05UH, NOT NINE FOR MOUNT VERNON.

30:09SO 714 MILLION.

30:11SO 14 MILLION.

30:12THE ASSESSMENT WAS 4 MILLION.

30:14HIS HIS ONE THAT'S EVEN MORE

30:17RIDICULOUS.

30:1740 FOR BEACON STREET SOLD FOR

30:2110 MILLION.

30:22ASSESSED A 3 MILLION.

30:24AND I'M LOOKING AT THESE HIGH

30:27THE MORE EXPENSIVE PROPERTIES

30:28AND THEN YOU GO TO THE

30:30PROPERTIES LIKE 93 ONE BACK

30:31THREE 346,000 WAS THE SALE

30:35PRICE.

30:35NOBODY WAS ASSESSED AT 360

30:40$46,720 THE EXACT SAME AMOUNT

30:44OF THE SALES PRICE.

30:45SO MY POINT IS HOW DO YOU HAVE

30:47THESE THAT AND SOME WAY EVEN

30:49HIGHER THE ASSESSED VALUE THAN

30:51THE SALES PRICE.

30:52BUT YOU HAVE SUCH A SUBSTANTIAL

30:55DIFFERENCE WHEN IT COMES TO THE

30:57MILLION DOLLARS THE HIGH END

30:59PROPERTIES.

30:59HOW DOES THAT HAPPEN?

31:01SO I BELIEVE THOSE SALES ON THE

31:03HIGHER END HAPPENED IN CALENDAR

31:04YEAR 20:05 A.M. I CORRECT THEM

31:06THAT.

31:11IT DOESN'T HAVE THE YEAR ON

31:13THIS.

31:15UH 24.

31:16CALENDAR 24.

31:18SO THE SALES TRANSACTIONS

31:20OCCURRED IN SO THE SALES

31:23TRANSACTIONS OCCURRED IN

31:24CALENDAR 24 FOR THE HIGHER END

31:25PROPERTIES.

31:27UH, FOR ALL OF THEM.

31:29FOR ALL OF THEM?

31:30FOR ALL OF THEM.

31:31OKAY.

31:32>> SO EVEN IN THAT CASE WE HAVE

31:34OUTLIER WE HAVE OUTLIERS ALL

31:35THE TIME.

31:37SO AS ONE OF THE GRAPHS

31:38MENTIONED WE HAVE WE'RE TRYING

31:40TO FIT WE'RE TRYING TO FIT A

31:41LOT.

31:42WE HAVE A LINE AND.

31:43>> WE'RE.

31:43TRYING TO.

31:44ANSWER THIS YEP.

31:45DO YOU KNOW WHY THERE'S SUCH A

31:47DIFFERENCE IN THE ASSESSED

31:49VALUE OF THE HIGH END PROPERTY

31:51AND SUCH AN ACCURATE ASSESSMENT

31:54ON THE LOW END PROPERTIES?

31:57I WOULD HAVE TO SEE THOSE DATA

31:59POINTS SPECIFICALLY TO GIVE YOU

32:00AN ANSWER ON THAT.

32:03OKAY.

32:07>> ON THIS DIFFERENTIAL AND THE

32:10REGRESSIVE YOU'RE TALKING A

32:12LITTLE BIT ABOUT THAT.

32:13YOUR PRESENTATION IDENTIFIES A

32:15PRICE RELATED DIFFERENTIAL AS A

32:17MEASURE WITH ASSESSMENT FOR

32:19PROGRESSIVE OR REGRESSIVE.

32:21AND THE CITY'S PARTIES ARE

32:24APPROXIMATELY 1.00 INDICATING

32:27RELATIVELY UNIFORM ASSESSMENT.

32:31YOU WITH ME SO FAR?

32:32YEP.

32:32DOES THAT ANALYSIS ADEQUATELY

32:35CAPTURE THE POTENTIAL DISPARITY

32:38AMONGST BOSTON EXPENSIVE

32:40PROPERTIES VERSUS THE LOWER

32:41VALUE PROPERTIES?

32:43YES.

32:43>> SO IN THE EXAMPLE THAT I'M

32:45THAT WE HAVE ON THAT I

32:46PRESENTED EARLIER.

32:47WE HAVE SALES PRICE QUARTILES.

32:49SO WHICH ONE.

32:50WAS THAT.

32:51>> THE EXAMPLE YOU PRESENTED.

32:52UH THE ONE YOU'RE YOU'RE

32:53TALKING ABOUT RIGHT NOW THE

32:54PRICE RELATED DIFFERENTIALS.

32:55OKAY.

32:56SO IF YOU LOOK AT THOSE WE HAVE

32:58SALES PRICE QUARTILES.

33:00SO THOSE ARE BASICALLY WE

33:01BUCKET THOSE INTO LOWER END

33:03SALES AND HIGHER.

33:04>> END SALES.

33:05UM SO WHEN WE DO THIS ANALYSIS

33:07WE'RE JUST NOT LOOKING AT THE

33:10OVERALL NUMBERS.

33:11WE'RE LOOK WE'RE BREAKING IT

33:12DOWN BY LOWER END PROPERTIES

33:13HIGHER END PROPERTIES THE STYLE

33:16THE LIVING AREA.

33:18UM THE.

33:18>> TYPE OF.

33:19GRADE FOR EXAMPLE TO SEE IF

33:22THERE'S ANY.

33:22ISSUES WITH OUR NUMBERS.

33:25SO YOU'RE NOT USING THE COST

33:26APPROACH.

33:27ARE YOU?

33:28>> WE AT THE COST APPROACH IS

33:30ANOTHER IS ANOTHER TECHNIQUE

33:31THAT WE USE.

33:32BUT FOR RESIDENTIAL PROPERTIES

33:33THE MOST APPROPRIATE IS THE

33:34SALES.

33:35APPROACH OR MARKET APPROACH.

33:36ARE YOU USING THE MARKET DATA

33:38APPROACH?

33:39CORRECT.

33:40>> AND HOW DO YOU USE THE

33:43ACCRUE DEPRECIATION WITH THAT

33:45IF YOU USE IT AT ALL.

33:47THE ACCRUED DEPRECIATION FOR.

33:54FOR THE ASSESSMENTS.

33:56THE ACCRUED.

33:59SO SO YOUR STAFF GOES OUT.

34:01YEP.

34:01>> AND THEY DO.

34:03AN ANALYSIS AND.

34:07YOU KNOW MIGHT YOU CAN YOU

34:09FINISH THIS QUESTION AND THEN

34:10WE'LL.

34:10WHEN THEY DO THEIR ANALYSIS AND

34:13THEY COME BACK WITH THE DATA

34:15THAT THEY HAVE IT GOES RIGHT

34:17INTO THE COMPUTER.

34:19CORRECT.

34:20>> AND AS THEY'RE.

34:26DETERMINING WHAT DATA THAT THEY

34:28WANT TO UM RECORD HOW.

34:34>> ARE.

34:35THEY INSTRUCTED BEFORE THEY GO

34:37OUT FOR LET'S SAY FOR A

34:39SPECIFIC HOME?

34:40HOW ARE THEY INSTRUCTED?

34:42YOU TALKED A LITTLE BIT ABOUT

34:43IF THERE WAS AN IMPROVEMENT.

34:45WHAT ARE THEY LOOKING FOR WHEN

34:47THEY'RE INSTRUCTED TO GO OUT

34:48AND THEY COLLECT THAT DATA.

34:50SO OUR ASSESSORS GO ON THE

34:52FIELD ANNUALLY TO GO OUT AND

34:54MAKE SURE OUR DATA.

34:54>> IS ACCURATE.

34:55SO THEY WOULD GO OUT EITHER FOR

34:57TEN YEARS CYNICAL CYNICAL

35:00INSPECTIONS OR WE GO OUT FOR

35:02BUILDING PERMITS OR WE GO OUT

35:04IF THERE'S AN ABATEMENT PORTION

35:05OF IT.

35:05SO WE HAVE UH A MANUAL.

35:08THAT WELL TWO PARTS WE HAVE A

35:10MANUAL THAT WE HAVE THAT WILL

35:12ASSIST THE ASSESSOR IN

35:13DETERMINING, YOU KNOW, WHAT

35:15ACCURATE PROPERTY ATTRIBUTES

35:16SHOULD.

35:16>> GO.

35:17IN THERE.

35:17>> WE ALSO HAVE A BUNCH

35:18OF CHECKS IN THERE.

35:19WE HAVE SUPERVISORS AND

35:20MANAGERS THAT ALSO REVIEWS

35:21THESE DATA POINTS TO MAKE SURE

35:23THAT THEY'RE ACCURATE AND

35:24REPRESENTATIVE.

35:24AND SO.

35:25CAN I JUST GET.

35:27SURE.

35:28SO WHEN THEY GO OUT AND THEY

35:29DETERMINE AN AREA OF THE CITY,

35:30HOW DO YOU DETERMINE THE AREA

35:33OF THE CITY THAT THEY GO TO AND

35:35WHETHER THAT'S WITHIN THAT TEN

35:36YEAR UH, ASSESSMENT PERIOD?

35:40WE DON'T TARGET SPECIFIC

35:42NEIGHBORHOODS.

35:42WE GO OUT CITYWIDE.

35:44NO I UNDERSTAND BUT THEY THEY

35:45DON'T GO CITYWIDE THAT DAY.

35:46HOW DO YOU DETERMINE WHAT AREA

35:48THEY GO TO WHEN THEY GO OUT TO

35:51MAKE THEIR ASSESSMENT?

35:53YEAH.

35:54>> WE DON'T WE DON'T GO OUT TO

35:57SPECIFIC NEIGHBORHOODS LIKE WE

35:58DON'T GO OUT TO JP OR

36:00SORRY JAMAICA PLAIN ONE YEAR OR

36:02ALLSTON ONE YEAR.

36:03WE ARE OUT EVERY SINGLE

36:05NEIGHBORHOOD ACROSS.

36:06I KNOW BUT HOW DO YOU.

36:07DETERMINE HOW DO WE IS IT THE.

36:08TEN YEAR CYCLE?

36:10IT IS MULTIPLE FACTORS SO IT

36:12COULD BE A BUILDING PERMIT THAT

36:13WAS PULLED.

36:14IT COULD BE A TAXPAYER THAT

36:15GAVE US A CALL ASKING US TO UH

36:18COME IN AND TAKE A LOOK AT THE

36:19PROPERTY.

36:20UM IT COULD BE THE TEN YEAR

36:21CYCLE.

36:21IT COULD BE A BUNCH OF VARIOUS

36:22FACTORS.

36:23AND SO THESE ARE, UH THESE

36:26APPRAISALS ARE ESTIMATES, RIGHT

36:27,THAT THE EMPLOYEE GOES OUT

36:30AND MAKES IT IT'S AN ESTIMATE,

36:32RIGHT.

36:32WHEN THEY LOOK AT.

36:34THE LET'S SAY A NEW KITCHEN,

36:37THEY MAKE AN ESTIMATE OF WHAT

36:39GOES INTO THE DATA.

36:42I'M NOT FOLLOWING AN ESTIMATE.

36:44>> OF THEIR OPINION.

36:45HOW DO THEY RECORD THE VALUE

36:47OF A NEW A KITCHEN TO A HOME?

36:50HOW DO THEY RECORD THAT?

36:51THAT'S A GREAT QUESTION.

36:52SO WE THEY'RE TAKING DOWN DATA

36:55POINTS ONCE THEY COME BACK INTO

36:56THE ONCE THOSE DATA POINTS ARE

36:58COLLECTED.

36:59WE THEN RUN.

37:00REMEMBER I MENTIONED ABOUT THE

37:01FOREST WE'RE LOOKING AT THE

37:03MARKET TRENDS AFTER THAT POST

37:04THAT SO ONCE EVERYONE COMES IN

37:06AND ENTERS ALL THESE DATA

37:07POINTS IN WE'RE LOOKING AT WHAT

37:09TYPES OF TRENDS AND SO GOOD

37:12DATA GOES IN.

37:14IF GOOD DATA GOES IN WE HAVE

37:16GOOD YOU KNOW VALUATIONS OF BAD

37:17DATA COMES OUT THEN WE HAVE BAD

37:19YOU KNOW VALUATION.

37:20>> SO IT'S BASED ON SOMEONE'S

37:21OPINION THOUGH.

37:22THAT'S THAT'S THAT'S MY

37:23QUESTION.

37:24IT'S BASED ON THEIR OPINION

37:25WHEN THEY PUT THAT DATA AND

37:27WHAT DATA ACTUALLY GOES IN.

37:29WELL IF THERE IS A DATA

37:31COLLECTION PORTION OF IT I MEAN

37:32IF THE ASSESSOR SEES THREE

37:34BEDROOMS IT'S THREE BEDROOMS.

37:36I DON'T KNOW IF THAT'S AN

37:37OPINION OR NOT, BUT.

37:38I'M TRYING TO GET TO THE VALUE

37:40THAT THAT KITCHEN BUT THAT NEW

37:42BEDROOM WHAT'S THE VALUE HOW.

37:45>> DO THEY DETERMINE THAT.

37:46OKAY SO THAT'S THAT'S THE.

37:48OPINION RIGHT.

37:49NOW THAT VALUATION IS

37:50DETERMINED BASED OFF THE LINEAR

37:51REGRESSION MODEL.

37:53SO WE INPUT ALL THOSE DATA

37:54POINTS INTO THAT MATHEMATICAL

37:56MODEL.

37:56SO THE ASSESSOR ISN'T GOING TO

37:58SAY YOU KNOW I'M GOING INTO

38:01ALLSTON RIGHT AND CHANGING THAT

38:02MODERN KITCHEN FOR.

38:03$50,000 HE'S LIKE HE OR SHE IS

38:05NOT GOING TO PUT $50,000 ON

38:07THERE.

38:07IT'S WHAT THE MODEL IS GOING TO

38:08GENERATE.

38:09OKAY.

38:10>> CAN I CANCEL CALL THEM.

38:11YEAH I'LL COME BACK.

38:12A SECOND ROUND.

38:14SO WE'VE BEEN JOINED BY ONE

38:15OF THE SPONSORS COUNCIL REL UH

38:18AND A FEW OF YOU WANT TO GO

38:20NOW?

38:21OKAY.

38:21UH, COUNCILOR FLYNN?

38:23YEAH.

38:23YOU'RE UP EIGHT MINUTES.

38:24THANK YOU, MR CHAIR.

38:25AND THANK THANK YOU AGAIN TO

38:26THE ASSISTANT COMMISSIONER.

38:31FOR BEING HERE.

38:34I KIND OF WANTED TO FOLLOW

38:36ALONG THE QUESTIONING THAT

38:39COUNCIL CALL PEP AHEAD.

38:41UM, SO THE ASSESSING RATES LOOK

38:45TO ME THEY LOOK LIKE THEY'RE

38:46BASED ON HOW MUCH HOMEOWNERS

38:48COULD SELL THEIR PROPERTIES AT

38:51THE TOP OF THE MARKET.

38:54OR HOW MUCH HOMES WERE SOLD TO

38:59BOUGHT FOR IN AND AROUND THEIR

39:01NEIGHBORHOOD.

39:01IS THAT IS THAT ACCURATE?

39:02YEP.

39:03>> GOOD AFTERNOON COUNCILOR.

39:04THANKS FOR THE QUESTION.

39:06SO ESSENTIALLY ASSESSED VALUES

39:09AND WHAT THE CURRENT MARKET IS

39:11I WOULD SAY ARE APPLES AND

39:12ORANGES.

39:13THE REASON FOR THAT IS WE'RE

39:14LOOKING AT SO FOR FISCAL YEAR

39:17IN FISCAL YEAR 26TH THE FISCAL

39:18YEAR THAT WE JUST HAD WE ARE

39:21LOOKING AT CALENDAR YEAR 24

39:23SALES.

39:24SO WE'RE CURRENTLY IN CALENDAR

39:25YEAR 20 FISCAL YEAR IN CALENDAR

39:28YEAR 26 RIGHT NOW.

39:30SO IF IF YOU WERE TO SELL YOUR

39:32HOME TODAY UM IT WOULD BE

39:34VASTLY DIFFERENT THAN WHAT.

39:36>> THE.

39:36ASSESSED VALUE WOULD BE BECAUSE

39:37WE'RE ANALYZING CALENDAR YEAR

39:3824.

39:39SALES THIS.

39:43SO RIGHT.

39:44SO FOR.

39:45>> EXAMPLE.

39:47I WAS FOR EXAMPLE SOMEONE WHO

39:49LIVES ON A SMALL STREET IN

39:51SOUTH BOSTON.

39:52THEY BOUGHT THEIR HOME SALES TO

39:57$200,000 NEXT TO IT THE SAME

40:00EXACT HOME WAS SOLD BOUGHT FOR

40:04$1 MILLION.

40:06UM, THAT DOESN'T MAKE THE LONG

40:10TERM HOMEOWNER THAT'S BEEN

40:13THERE A LONG PERIOD OF TIME.

40:15IT DOESN'T MAKE THEM WEALTHY

40:16BECAUSE THEY'RE LIVING IN A IN

40:19A HOME NOW THAT'S VALUED

40:21ASSESSED ASSESSED AT YOU KNOW,

40:24$1 MILLION LIKE THEIR NEIGHBOR.

40:27SO THEY'RE BASICALLY PAYING THE

40:29SAME PROPERTY TAX AS THEIR AS

40:33THEIR NEIGHBOR WHO MIGHT BE IN

40:36THE MIDDLE OF THEIR CAREER

40:37MAKING.

40:38WELL IF YOU IF YOU BUY $1

40:40MILLION HOME YOU PROBABLY MAKE

40:42AN I DON'T KNOW, 5 OR $600,000

40:44A YEAR.

40:45BUT THE PERSON THAT BOUGHT

40:46THEIR HOME FOR $200,000 MIGHT

40:48BE A MIDDLE CLASS PERSON.

40:50SO YOU.

40:52SO YOU'RE HURTING IN MY OPINION

40:55UM, THE STRUGGLING PERSON THAT

40:58OWNS THE HOME FOR $200,000 HE'S

41:00NOW PAYING THE SAME TAXES.

41:02THAT'S WHAT THAT'S THE

41:04DISCONNECT IN THE CITY.

41:07AND IF WE WANT TO BUILD HOUSING

41:09RIGHT WE NEED MORE HOUSING.

41:11EVERYONE IS SAYING WE NEED MORE

41:12HOUSING IN BOSTON.

41:13OKAY, LET'S BUILD MORE HOUSING.

41:16BUT DOES THAT MEAN WHEN WE

41:17BUILD MORE HOUSING, THE VALUE

41:20OF LONG TIME RESIDENTS THE THE

41:22HOME THE VALUE.

41:23GOES UP.

41:25WHICH MEANS THEIR TAXES GO UP

41:28SO THEY'RE CONTRIBUTING TO THE

41:30CITY BY SUPPORTING THESE

41:32DEVELOPMENT PROJECTS BECAUSE

41:34THEY WANT TO DO WHAT'S IN THE

41:36BEST INTEREST OF THE CITY

41:37OF BOSTON.

41:38BUT ON THE OTHER HAND OH BY THE

41:41WAY, YOUR TAXES JUST.

41:42>> WENT UP 13%.

41:45THAT'S THE DISCONNECT I'M

41:47HEARING DIRECTLY FROM RESIDENTS

41:49I I'M IN THE CITY EVERY DAY.

41:51I WORK SEVEN DAYS A WEEK.

41:53I HAVEN'T TAKEN A DAY OFF IN

41:55NINE YEARS.

41:55I LISTEN TO PEOPLE.

41:56PEOPLE TALK.

41:57>> TO ME ALL DAY LONG.

41:58THAT'S WHAT I'M HEARING IS THAT

41:59.

41:59IS THAT ACCURATE?

42:02ACCURATE IN THAT.

42:06SO THE SO $200,000 PROPERTY

42:12PURCHASED IN DECADES AGO WHICH

42:14IS A RECENT SALE OF $1 MILLION

42:15THAT.

42:16YEAH.

42:17SO BUT THEN BUT THEN WHEN YOU

42:18HAVE MORE DEVELOPMENT TAKING

42:20PLACE RESIDENTS WANT TO SUPPORT

42:22MORE DEVELOPMENT.

42:23IT'S APPROVED BY BPD.

42:24IT'S APPROVED BY ZBA.

42:26YOUR VALUE OF YOUR PROPERTY

42:28GOES UP AND THEN YOU ARE PAYING

42:30MORE TAXES.

42:34SO ON THE MILLION DOLLAR

42:35PORTION.

42:36>> OF IT.

42:36WE'RE NOT JUST LOOKING AT THAT

42:38SINGULAR SALE.

42:38YOU KNOW IF WE WERE DOING IN

42:402024 WE'RE NOT JUST LOOKING AT

42:41THAT SINGULAR SALE.

42:42WE'RE LOOKING AT OTHER SALES

42:46OF UM LET'S SAY IT WAS A TWO

42:47FAMILY.

42:47>> YEAH IN IN AND AROUND THE

42:49AREA.

42:49CORRECT.

42:50YEAH.

42:50LIKE THERE'S THIS HOMES THAT

42:52ARE BOUGHT AND SOLD ALL THE

42:53TIME IN MY NEIGHBORHOOD AND.

42:56MOST OF THE LONG TIME RESIDENTS

42:57HAVE GONE.

42:59MANY OF THEM CAN'T AFFORD THE

43:00PROPERTY TAXES ANYMORE.

43:01UM, BUT WHY ARE THEY COMPETING

43:05WITH PEOPLE THAT ARE MAKING

43:07THAT JUST BOUGHT $1 MILLION

43:08HOME?

43:09THEY MIGHT BE MAKING $600,000 A

43:11YEAR.

43:11WHY ARE THEY PAYING PRETTY MUCH

43:13THE SAME PROPERTY TAX AS

43:16SOMEONE IN THE MIDDLE OF THEIR

43:17CAREER?

43:18AND IT MIGHT BE THEY MIGHT BE

43:20RETIRED.

43:24I'M SORRY.

43:28SO ESSENTIALLY OUR UNDER STATE

43:30STATUTE WE HAVE TO VALUE

43:31PROPERTIES THAT FAIR CASH

43:32MARKET VALUE.

43:34SO WE HAVE TO LOOK AT THESE

43:36SALES AND.

43:37MAKE YOU KNOW.

43:41WE HAVE TO MAKE THESE WE HAVE

43:42TO LOOK AT THESE SALES AND MAKE

43:44PROPER ADJUSTMENTS UNDER STATE

43:46STATUTE.

43:47SO THAT'S PART ONE.

43:47PART TWO IS UM UNDER YOU KNOW

43:50THIS INDIVIDUAL INDIVIDUAL THEY

43:52RETIRED UM HOPEFULLY THEY'RE IN

43:53THE RESIDENTIAL EXEMPTION

43:54PROGRAM AND HOPEFULLY YOU KNOW,

43:56THEY MEET THE OTHER INCOME

43:57REQUIREMENTS FOR US TO YOU

43:59KNOW, GIVE OTHER.

44:00STATUTORY EXEMPTIONS.

44:02SO WE DO HAVE OTHER RELIEF

44:04VALVES, UM, TO ASSIST RESIDENTS

44:06WHO YOU KNOW ARE STRUGGLING

44:07LIKE THAT.

44:08WELL, LONGTIME RESIDENTS HAVE

44:11RECEIVED AN INCREASE IN THEIR

44:13PROPERTY TAX THE LAST TWO YEARS

44:16ONE BASICALLY 10% AND THEN THE

44:20OTHER YEAR 13%.

44:22ARE WE LOOKING AT ANOTHER

44:24LIKELY 10% OR HIGHER INCREASE

44:28UH, FOR NEXT YEAR.

44:29FOR RESIDENTIAL PROPERTIES?

44:30YEAH.

44:31UM, WE'RE STILL REVIEWING THAT.

44:32NO I KNOW, I KNOW, BUT BUT IS

44:34IT LIKELY IS IT LIKELY IF YOU

44:36PAID 10% MORE ON PROPERTY TAXES

44:39LAST YEAR AND 30% THE YEAR

44:43BEFORE, IT'S IT'S LIKELY YOUR

44:44TAXES ARE NOT GOING UP.

44:45YOUR TAXES NEVER GO DOWN.

44:47THEY ALWAYS GO UP.

44:48I JUST WANT TO PREPARE

44:49RESIDENTS THAT THEY'RE LIKELY

44:52TO SEE A 10% INCREASE ON THEIR

44:56PROPERTY TAX.

44:57IS IS THAT FAIR TO SAY.

44:59ON THE PROPERTY TAX SIDE I'M

45:01NOT TOO SURE BECAUSE WE DID.

45:03SO MY OFFICE DEALS WITH

45:05VALUATION I THINK THE OTHER

45:07COMPONENT THAT YOU'RE TALKING

45:08ABOUT IS BASICALLY WHAT THE TAX

45:09RATE IS.

45:10SO A COMPONENT OF THAT IS YOU

45:12KNOW IN A FEW WEEKS WE'RE GOING

45:13TO BE TALKING.

45:13ABOUT THE.

45:14>> TAX RATE SHIFT WHICH I

45:15DISCUSSED EARLIER.

45:16UM SO THAT IS A COMPONENT INTO

45:18YOU KNOW, HOW A PROPERTY WOULD

45:20HOW A TAXPAYER IN BOSTON YOU

45:23KNOW WHAT.

45:24THAT BURDEN WOULD BE?

45:26UM, BUT WE DEAL WITH A

45:28VALUATION AND WE'RE BASICALLY

45:29LOOKING AT WHAT THE MARKET.

45:31PATTERNS ARE IN NEIGHBORHOODS.

45:32DO YOU DO YOU RELY ON ANY TYPE

45:35OF SOCIAL MEDIA UM, LIKE REAL

45:38ESTATE UM TO TO DETERMINE WHAT

45:41THE VALUE OF THE PROPERTY IS.

45:45UH.

45:45.

45:45SOCIAL MEDIA?

45:46YEAH.

45:46>> YEAH.

45:47SOME OF THESE.

45:48>> ZILLOW.

45:48YOU KNOW, SO WE DON'T WE DON'T

45:51USE ZILLOW WE USE.

45:53UM, IF WE'RE LOOKING AT REAL

45:54ESTATE TRANSACTIONS LIKE WE

45:57SUBSCRIBE TO THE MULTIPLE

45:58LISTING SERVICE BUT THAT'S ONLY

45:59ONE TOOL THAT WE HAVE.

46:00I'D PROBABLY SAY.

46:03UH.

46:04>> WE'VE HAD THOUSANDS

46:06OF TRANSACTIONS THAT OCCURRED

46:07IN CALENDAR 24 FOR EXAMPLE ON

46:0925.

46:09ABOUT A THIRD OF THOSE ARE NOT

46:12ON THE MULTIPLE LISTING SERVICE

46:13.

46:14SO WE HAVE TO GO TO OTHER

46:15ALTERNATIVES SUCH AS REACHING

46:16OUT TO THE BROKER.

46:17OKAY.

46:18UH, REACHING OUT TO THE.

46:19UH, HOMEOWNER OR, YOU KNOW,

46:22OTHER.

46:23WELL, LET ME ASK ONE MORE

46:24QUESTION BEFORE MY TIME IS UP.

46:26MR CHAIR, MAY I ASK THIS?

46:27YES.

46:27OKAY.

46:29SO IF YOU CHALLENGE THE THE THE

46:33PROPERTY TAX THAT YOU OWE TO

46:35THE CITY.

46:37UM.

46:38WHAT WHY IS THAT?

46:39AND MAYBE I'M NOT PHRASING AND

46:41PHRASING IT CORRECTLY, BUT IS

46:43THAT PERSON THAT CHALLENGES THE

46:45TAXES THEY OWN?

46:47THEY UM UH AND IF THEY LOSE,

46:52DOES THAT MEAN THAT THEIR

46:54PROPERTY TAXES GO UP ALMOST AS

46:56A PENALTY BECAUSE THEY THEY ARE

46:58CHALLENGING AND I DON'T KNOW IF

47:00THAT'S ACCURATE OR NOT.

47:01BUT I DID HEAR THAT THAT IF YOU

47:04CHALLENGE IT THERE'S SOME TYPE

47:07OF PROVISION THAT YOU TAX MIGHT

47:08GO UP AUTOMATICALLY.

47:10IS THAT IS THAT ACCURATE?

47:12YEP.

47:13>> NOPE.

47:14UM SO WE DON'T HAVE A PROVISION

47:16FOR THAT AND I BELIEVE YOU'RE

47:17RELATING TO US UP TO ONE OF THE

47:19LAWSUITS THAT WE HAVE.

47:20SO I REALLY CAN'T COMMENT ON

47:22MOST OF THAT PORTION OF IT.

47:23BUT WHAT I CAN SAY IS

47:25ESSENTIALLY WE'RE THERE IS THAT

47:28LEGAL REMEDY FOR AN ABATEMENT

47:30PROCESS AND THEY WILL GO

47:31THROUGH THAT REMEDY UM FOR

47:33RESIDENTIAL PROPERTIES FOR

47:34EXAMPLE WHERE REQUEST TO GO OUT

47:36AND TAKE.

47:36A LOOK AT.

47:37>> YOU KNOW IF WE HAVE IF OUR

47:38DATA POINTS ARE ACCURATE UM

47:41WHERE THEY'RE COMING FROM

47:43ESSENTIALLY YOU KNOW, WHY ARE

47:44THEY FILED THE ABATEMENT WHAT.

47:45>> THEY THINK THEIR.

47:46VALUE IS.

47:47UM, STUFF LIKE THAT TO SEE YOU

47:49KNOW WHAT WHAT IS WRONG WITH

47:50THAT RESIDENTIAL PORTION?

47:52>> GLAD TO KNOW THAT SOMEONE

47:54DOESN'T GET A PENALTY BECAUSE

47:55THEY CHALLENGE, UH, THE

47:57ASSESSMENT.

47:58SO I'M GLAD TO HEAR THAT.

48:00UM, BECAUSE I DO THINK THAT

48:02WOULD BE UNFAIR IN MY OPINION.

48:04UM, BUT THAT DOES NOT HAPPEN IS

48:08WHAT THERE'S WHAT I UNDERSTAND

48:09NOW THAT THAT DOES NOT HAPPEN.

48:11IS THAT ACCURATE?

48:13CORRECT.

48:14>> OKAY.

48:14UM, MR CHAIR, UH.

48:16THANK YOU.

48:17THANK YOU, COUNCILOR FLYNN.

48:18COUNCILOR FITZGERALD.

48:20THANK YOU VERY MUCH, CHAIR

48:22AGAIN.

48:22THANK YOU VERY MUCH LIKE THE

48:23OFFICIAL ONE.

48:24FOR BEING HERE.

48:24UM, SO THE SOFTWARE WE USE TO

48:27CALCULATE VALUATIONS IS CANVA.

48:28KENT.

48:29>> YES.

48:30SORRY.

48:31>> UM AND ARE THERE ANY

48:33LIMITATIONS.

48:33>> ON THIS SOFTWARE OR ARE

48:34THERE.

48:34>> THINGS THAT YOU WOULD RATHER

48:35IT BE ABLE TO DO THAT IT KENT

48:37OR THAT YOU THINK WOULD HELP

48:38MORE OR IS IT UH IT COVERS

48:40FULLY WHAT YOU THINK WE NEED TO

48:42DO TO CREATE A UH THE CORRECT

48:43PROPER VALUATION.

48:45NO.

48:45>> UM THAT'S A GREAT QUESTION,

48:46COUNSELOR.

48:47AND HELLO.

48:47UM.

48:48THAT AS WITH ANY STATISTICAL

48:51MODEL, UM, THERE'S ALWAYS FINE

48:53TUNING TO IT.

48:54UM, WE ARE ALWAYS OUT LOOKING

48:56FOR.

48:57OTHER ALTERNATIVES IF THERE ARE

48:58OUT THERE.

48:59UM, WE'VE ENTERTAINED YOU KNOW,

49:02OTHER TYPES OF SO IT'S LINEAR

49:04REGRESSION MODELING.

49:05WE HAVE OTHER TYPES OF UM

49:07REGRESSION MODELING OUT THERE

49:08TO SEE YOU KNOW, IF IF THIS

49:09FITS, YOU KNOW, WITHIN OUR

49:11VALUES UM, OR WE'VE ALSO TRIED

49:14MACHINE LEARNING AS WELL.

49:16IT'S AN OLD TERM FOR ARTIFICIAL

49:18INTELLIGENCE UM THINGS LIKE

49:19THAT.

49:20BUT WE'RE ALWAYS TRYING TO

49:21FIGURE OUT, YOU KNOW, OTHER

49:22APPROACHES TO SEE IF UM, LINEAR

49:24REGRESSION MODEL STILL.

49:25WORKS GREAT.

49:27AND HOW.

49:28>> IS THAT IS IS THE CAM A

49:29MODEL.

49:30INCORPORATED WITH ANY OTHER

49:32VALUATION EQUATIONS OR

49:33EVERYTHING EXISTS WITHIN THIS

49:35SOFTWARE?

49:36UM, SO IT'S AN ASSISTED PROGRAM

49:38.

49:38SO ALL OF OUR VALUATION YOU

49:40KNOW MODELING IS IS IN THE

49:42SYSTEM OKAY.

49:43AND ALL OUR DATA POINTS AS

49:44WELL.

49:44YEAH.

49:45>> SO WHATEVER COMES OUT OF CAM

49:46IS NOT THEN GROUPED WITH

49:47ANOTHER EQUATION OR ANOTHER.

49:49IT'S IT'S ALL IN THERE.

49:51YEAH SO ESSENTIALLY IT'S

49:52BASICALLY IT'S NOT ONLY LIKE

49:53HOW WE VALUE PROPERTY IT'S ALSO

49:55LIKE A DATA MANAGEMENT SYSTEM

49:56AS WELL.

49:57SO IT'S WHERE WE COLLECT ALL

49:58OUR DATA POINTS.

49:59>> FOR OUR.

49:59PROPERTIES ACROSS THE CITY.

50:01SO HOW IS IT IN.

50:03CAM AND ALL THE COMPONENTS HOW

50:04IS.

50:04EACH COMPONENT OF THE EQUATION

50:07WEIGHTED FOR INSTANCE?

50:09UM DO WE RELY ON POTENTIAL

50:11MARKET RATE PRICES USING ZILLOW

50:13OR GOING OUT TO BROKERS AND

50:14THINGS LIKE THAT?

50:15UH, TO FILL IN THAT SPECIFIC

50:18INTEGER OF THE EQUATION AND IF

50:21SO IS THAT INTEGER WEIGHTED ANY

50:22HEAVIER THAN MAYBE OTHER PARTS

50:24OF THE EQUATION OR NOT?

50:26DO YOU KNOW I.

50:27MEAN YEAH NO THAT'S THAT'S A

50:28GREAT QUESTION.

50:30SO ESSENTIALLY WE'RE WE'RE

50:31LOOKING AT.

50:32YOU KNOW THE OVERALL FOR ALL

50:34THE MARKET SALES WITHIN YOU

50:36KNOW BRIGHTON FOR EXAMPLE AND

50:39THAT WILL GENERATE YOU KNOW

50:41CERTAIN VALUES ACROSS ALL THESE

50:42DATA POINTS.

50:44UM THE FINE TUNING COMES IN A

50:45LITTLE LATER ON.

50:46WHEN YOU KNOW WE MIGHT NOTICE

50:48THAT UM A BATHROOM FOR EXAMPLE

50:52IS EXPONENTIALLY HIGH FOR SOME.

50:53>> ODD REASON AND WE'RE GOING

50:54TO TAKE A LOOK AT THAT.

50:55>> TO SEE WHY UM, MAYBE OUR

50:56DATA POINTS ARE INCORRECT OR

50:58YOU KNOW, JUST.

50:59HAVE TO.

50:59>> CALIBRATE THE MODEL.

51:00>> A LITTLE BIT.

51:01OKAY.

51:02>> UM.

51:03>> YOU KNOW, I KNOW OVER THE

51:04PAST COUPLE OF YEARS, UH, WE

51:06HAD A COUPLE STORIES IN UH,

51:08SAVIN HILL SPECIFICALLY WHERE

51:09THERE WAS SOME.

51:11OUTLIERS AND I UNDERSTAND.

51:12>> THAT ANY DATA SET THERE WILL

51:13BE A.

51:14COUPLE OF OUTLIERS HERE AND

51:15THERE.

51:15UH, IT SEEMED.

51:16>> TO BE A LOT CONCENTRATED IN

51:17IN ONE PARTICULAR AREA.

51:19UH, AND I'M SURE YOU'LL HEAR

51:20SOME OF MY CONSTITUENTS HERE

51:21TODAY THAT WILL GO ON AND TALK

51:23ABOUT MORE ABOUT THAT.

51:23BUT HOW IS AN INDIVIDUAL.

51:25>> OR A FAMILY UH, TO KNOW IF

51:28THEIR VALUATION IS AN OUTLIER?

51:30UH, WHAT ARE SOME OF THE

51:31INDICATORS THEY SHOULD BE

51:32LOOKING FOR IF THEY'RE.

51:33IF THERE'S A HOMEOWNER.

51:34>> RIGHT NOW LISTENING TO THIS

51:35THIS HEARING AND THEY WANT TO

51:37SAY I DON'T I I GET NO IDEA IF

51:39THIS IS DID I GET GROSSLY

51:41OVERVALUED OR NOT.

51:42WHAT WOULD YOU RECOMMEND THEY

51:43LOOK AT AND WHAT INDICATORS

51:45WHEN THEY GET THERE?

51:46UH YOU KNOW WHEN THEY GET THEIR

51:48PROPERTY TAX UH WHAT SHOULD

51:49THEY BE LOOKING AT YEAR OVER

51:50YEAR TO SEE BESIDES JUST THE

51:52YEAH.

51:52NOPE.

51:53>> THAT'S A GREAT QUESTION.

51:54SO IF I WOULD RECOMMEND YOU UH

51:56THE THE CONSTITUENT OR

51:58TAXPAYER, YOU.

51:59KNOW.

51:59>> TAKE A LOOK AT THE PROPERTY

52:00RECORD CARD.

52:01UM ALL THAT INFORMATION IS

52:02AVAILABLE ONLINE ON OUR WEBSITE

52:04.

52:04UM, WE JUST UPDATED THIS

52:05PROPERTY DATABASE LAST YEAR SO

52:07IT SHOULD BE EASIER TO USE.

52:09UM, WE ALSO INCLUDE ALL OF OUR

52:12SALES THAT WE USE IN ANALYSIS

52:13ON OUR WEBSITE AS WELL.

52:14THEY CAN LOOK FOR COMPARABLE

52:16SALES UM AND IF THEY WANT THEY

52:18CAN COME INTO OUR OFFICE MEET

52:20WITH THE ASSESSOR IN THAT AREA

52:21.

52:22UM WE CAN GO OVER EVERYTHING

52:23WITH UM YOU KNOW, EXPLAIN TO

52:25THEM HOW WE.

52:26DO WHAT WE DO AND YOU KNOW, ANY

52:29COMPARABLE SALES AND HOW WE GOT

52:30TO THAT.

52:30UM.

52:31>> PRETTY EASY.

52:32OKAY.

52:33>> UH.

52:33THANK YOU.

52:35UM.

52:36>> AND IF A.

52:36LANDLORD OWNS A.

52:37HOUSE.

52:38>> UH, OR A TRIPLE DECKER OR

52:39WHATEVER IT MAY BE.

52:40UH, IS THERE ANY.

52:41ADDITIONAL TAX THAT THEY PAY?

52:43I KNOW THEY CAN APPLY FOR

52:44RESIDENTIAL EXEMPTION.

52:45RIGHT.

52:45BUT WE HAVE A LOT OF HOUSES,

52:46ESPECIALLY IN DORCHESTER THAT

52:48ARE.

52:48>> OWNED BY PEOPLE.

52:49>> THAT ARE LIVING NOT IN

52:50DORCHESTER, NOT EVEN IN THE

52:52CITY.

52:52UM, SO THEY CAN APPLY.

52:54FOR THE RESIDENCE.

52:54EXEMPTION BECAUSE THEY'RE NOT

52:56OWNER OCCUPIED.

52:57UH BUT IS THAT THE ONLY.

53:00I WOULDN'T CALL THAT THE

53:01ADDITIONAL TAX.

53:01THEY JUST DON'T GET THE

53:02EXEMPTION.

53:03IS THERE ANY ADDITIONAL.

53:04TAX THAT THEY DO.

53:06>> HAVE TO PAY FOR NOT BEING

53:07OWNER OCCUPIED OR BEING.

53:09BASICALLY A UM YOU KNOW, A

53:12LANDLORD THAT'S NOT AROUND UH,

53:14OR THAT DOESN'T LIVE IN THE

53:16NEIGHBORHOOD OR SOMETHING.

53:16>> LIKE THAT.

53:17YEP.

53:17>> UM SO WE DON'T HAVE UNDER

53:20UNDER STATE LAW.

53:21WE DON'T HAVE ANY ADDITIONAL.

53:23TAXES UM UNDER THAT SCENARIO.

53:25HAS THERE.

53:26>> BEEN ANY PROPOSED?

53:28UM SO HOW DID IT GO.

53:29THAT PART I'M NOT TOO SURE

53:30ABOUT.

53:31UM, I'M.

53:31RIGHT THERE.

53:32>> YEAH.

53:32BUT AN.

53:33EITHER IN EITHER CASE.

53:35UM THEY ARE WHAT THEY ARE

53:36GETTING THOUGH IS THE BENEFIT

53:37OF THE RESIDENTIAL TAX RATE AND

53:39THAT'S NOT ONLY IS FOR THREE

53:42FAMILIES, YOU KNOW, WHO DON'T.

53:44LIVE THERE AND.

53:44OCCUPY THE PROPERTY THAT ALSO

53:46GOES FOR APARTMENT BUILDINGS AS

53:47WELL.

53:48SO UM.

53:49>> YOU KNOW.

53:50I'M SORRY, ARE YOU SAYING THEY

53:52ENJOY A BENEFIT?

53:52THERE IS A BENEFIT.

53:53BECAUSE WE BECAUSE THIS

53:56COUNCIL DOES THE.

53:57UM THE COMMERCIAL RESIDENTIAL

53:58SPLIT.

53:59SO IF WE DIDN'T HAVE THAT

54:00SPLIT, YOU KNOW, THEY'D BE

54:02PAYING SUBSTANTIALLY MORE.

54:03UM.

54:04>> BUT BECAUSE THEY'RE A

54:04RESIDENTIAL UNIT, YOU KNOW, AN

54:06APARTMENT BUILDING 100 PLUS

54:07UNITS, THEY GET A LOWER TAX.

54:09RATE BECAUSE OF THAT JUST BEING

54:10JUST FOR BEING A RESIDENCE AS

54:12OPPOSED.

54:13TO A RESIDENTIAL UNIT.

54:15I GET THAT.

54:16UM.

54:17>> ALL RIGHT, THAT MIGHT BE

54:18SOMETHING INTERESTING TO LOOK

54:19AT THE STATE.

54:20UM AND AS FAR AS THE SPLIT GOES

54:22,I KNOW YOU JUST MENTIONED THE

54:23SPLIT.

54:23I MEAN IT'S THE ONGOING.

54:26CONCERN AND I JUST WONDER HOW

54:27YOUR YOUR OFFICE IS SORT

54:29OF GRAPPLING WITH THIS OF THAT

54:32IF WE WERE TO, UH, SHIFT THE

54:33BURDEN ON TO THE COMMERCIAL

54:35WHICH WE ALREADY KNOW IS

54:36DECLINING.

54:37UM, AND.

54:38THAT WERE.

54:39TO FURTHER SPURN FURTHER

54:42DISINVESTMENT FROM THE CITY.

54:44ULTIMATELY THAT WOULD JUST

54:45CONTINUE TO.

54:46RAISE RESIDENTIAL TAXES EVEN

54:49MORE.

54:49I SEE RIGHT WITH EVERYTHING

54:51DROPPING FASTER AND PEOPLE

54:52DISINVEST FROM THE COMMERCIAL

54:55CORE.

54:55UM.

54:55SO IS IT IS IT FAIR TO SAY.

54:57THAT THERE IS A RISK.

55:00OF DRAMATICALLY RAISING THE

55:01RESIDENTIAL RATE IF IF IN THE

55:05SHIFT.

55:06TO COMMERCIAL UH SPREADS

55:08FURTHER DISINVESTMENT BECAUSE.

55:11>> THAT'S.

55:11THAT'S MY THAT'S MY WORRY EVERY

55:13DAY IS.

55:13>> LIKE IF WE.

55:14SHIFT TO THE COMMERCIAL AND

55:15THAT'S NOT JUST DOWNTOWN

55:16COMMERCIAL CORE BUT ALSO SMALL

55:17BUSINESSES THAT IF.

55:18WE RAISE THE TAXES ON THEM AND

55:20HAVE THEM.

55:21>> CARRY THE SHIFT.

55:21THAT THEY.

55:22EITHER CLOSE, LEAVE TOWN.

55:24TAKE ALL THEIR INVESTMENT WITH

55:25THEM.

55:26AND THEN WHEN YOU HAVE TO

55:28BALANCE IT OUT IT ONLY FURTHER

55:29RAISES THE RESIDENTIAL TAX RATE

55:31UM, ALONG WITH WHATEVER THE

55:33VALUATION MAY BE.

55:34IS THAT A FAIR RISK?

55:36THAT IS.

55:37SOMETHING WE SHOULD.

55:38BE CONCERNED ABOUT.

55:42SO ON THE VALUATION SO MY

55:44OFFICE PRIMARILY DEALS WITH THE

55:45VALUATION PORTION OF IT.

55:47SO ON THE ON THE TAX RATE SIDE

55:51UM THE BURDEN IS ON THIS

55:53COUNCIL TO UH TO OR WE'RE AT

55:55THE MAXIMUM AMOUNT ALLOWABLE

55:57AMOUNT SO UM IF IT WOULD BE UP

56:01TO THIS COUNCIL TO DETERMINE IF

56:02THEY WANT TO INCREASE THE

56:06BURDEN ON RESIDENTIAL

56:08PROPERTIES AND DECREASE IT

56:10BASED OFF OF THE TAX RATE.

56:11BUT ON OUR END WE PRIMARILY

56:12DEAL WITH THE VALUATION.

56:13NO.

56:14FAIR ENOUGH.

56:14>> I DON'T WANT TO PUT YOU IN

56:16AN UNFAIR POSITION THAT THAT'S

56:17SOME OF YOUR DEPARTMENT DOESN'T

56:18DEAL WITH, BUT I FEEL IT DOES.

56:19IT IS VERY MUCH RELATED.

56:21UM AND IT IS A CONCERN I HAVE.

56:23AND I GUESS I WAS JUST LOOKING

56:24FOR VALIDATION THAT.

56:25YES, THAT IS A POTENTIAL.

56:27RISK THAT THAT WE SHOULD BE

56:28AWARE OF WHEN MAKING A DECISION

56:31ON THE THE THE THE SPLIT.

56:35OKAY.

56:36THANK YOU.

56:37I APPRECIATE THE TIME.

56:37THANK YOU VERY MUCH.

56:38UH, COUNCILOR, WILL THEY GIVE.

56:40A TIME FOR OPENINGS?

56:42SO YOU HAVE NINE.

56:43>> MINUTES AND CAN USE IT

56:44HOWEVER YOU WANT.

56:45UH THANK YOU.

56:46CHAIR.

56:46UM, AND THANK YOU.

56:47FOR BEING HERE.

56:49UM, I GUESS MY FIRST QUESTION

56:51WILL BE AROUND SOMETHING THAT

56:54COUNCIL CULPEPER HAS BROUGHT

56:54UP.

56:55UH, HE BROUGHT UP, UH UH, HOME

56:59VERY EXPENSIVE HOMES, UM, WITH

57:02DISCREPANCIES IN THEIR SALE TO

57:04ASSESSMENT VALUE.

57:06UM ON ON PAGE SEVEN YOU SHOWED

57:09UM, UH THE ASSESSOR UM BUT

57:14STARTING AT 1.17 I THINK IT WAS

57:18SAY LIKE 1.2, RIGHT?

57:20I THINK COUNCILOR COPEPODS

57:22EXAMPLES.

57:22WERE FAR ABOVE THAT 1.2 NUMBER.

57:25ARE YOU ABLE TO PROVIDE LIKE

57:27THE ASSESSMENT ASR FOR YOU KNOW

57:30HOMES THAT SOLD FOR 2,000,003

57:33MILLION 5,000,010 MILLION AND

57:35ABOVE BECAUSE WE'RE WE'RE

57:37LOSING SO MUCH OF A LARGE RANGE

57:39WHEN WE'RE CAPTURING EVERYTHING

57:40ABOVE 1.7.

57:43YEP.

57:44>> SO ALL THAT INFORMATION IS

57:45ACTUALLY LISTED ON OUR WEBSITE

57:46.

57:48UM AND SO I BELIEVE THAT REPORT

57:51IS USING CALENDAR YEAR 25 SALES

57:52FOR FISCAL YEAR 26 ASSESSMENTS

57:55.

57:55AND SO UM AGAIN FISCAL YEAR 26

57:59ASSESSMENTS WE'RE USING

58:00CALENDAR YEAR 24 SALES.

58:01AND SO THOSE 25 SALES WE WOULD

58:04NOT BE ABLE TO USE IN OUR

58:06ANALYSIS UM TO GENERATE THOSE

58:08VALUES.

58:09SO IT'S KIND OF LIKE AN APPLE

58:11AND AN ORANGE DIVIDE THEM

58:13TOGETHER.

58:14IT'S NOT GOING TO TASTE GOOD

58:15RIGHT?

58:15NO I'M JUST SAYING ARE YOU ABLE

58:17TO.

58:18YES I CAN I DO I CAN PRESENT.

58:19FOR $2 MILLION HOMES THAT SOLD

58:22$5 MILLION.

58:23I WOULD LOVE TO SEE LIKE THE

58:24ASR YES TO THOSE TYPE OF HOMES

58:26YES.

58:26I CAN I CAN PROVIDE THAT OVER.

58:27>> TO YOU.

58:28AWESOME.

58:28AND THEN WITHIN UM EACH UH

58:32SECTION RIGHT LIKE YOU HAVE

58:33SINGLE FAMILY HOMES Q1, Q2.

58:36Q3 YOU DO THAT FOR A FEW

58:38DIFFERENT PROPERTIES.

58:38ARE YOU ABLE TO TELL US HOW

58:40MANY OF THOSE PROPERTIES ARE

58:44BELOW?

58:44UM THE .92.

58:47YES.

58:48>> OKAY.

58:49>> YEAH I CAN PROVIDE THAT OVER

58:50TO YOU.

58:50AWESOME.

58:51>> AND THEN UM, WE STOP AT

58:54THREE FAMILY HOMES.

58:56UM, KNOWING THAT YOU KNOW, WITH

58:58YOUR CONVERSATION WITH

59:00COUNCIL FITZGERALD YOU KNOW, WE

59:01HAVE 20 UNITS 30 UNITS 40.

59:04IS THERE A DIFFERENT TYPE

59:06OF APPROACH THAT YOU USE UH,

59:08WHEN EVALUATING?

59:10YEP.

59:10>> OH SORRY.

59:11I ALSO SAID FORGOT TO SAY

59:13HELLO.

59:13UM, BUT UM, THERE'S ACTUALLY

59:15ANOTHER CLASS THAT WE FORGOT TO

59:17PROVIDE IN HERE.

59:18UM, JUST BECAUSE WE DIDN'T HAVE

59:19THE SPACE FOR IT.

59:20UM THAT'S CONDOMINIUMS AND THAT

59:22IS BASICALLY OUR LARGEST, UM,

59:24ASSESSMENT CLASS.

59:26UM, BUT TO ANSWER YOUR

59:28QUESTION, WE USE DIFFERENT

59:28APPROACHES UM, FOR FOR UNITS

59:32OVER THREE.

59:33SO LIKE A 50 UNIT APARTMENT

59:35BUILDING.

59:36UM, WE USE A DIFFERENT APPROACH

59:39SO WE USE THE INCOME APPROACH.

59:40UM, JUST BECAUSE WE DON'T HAVE

59:42ENOUGH SALES TRANSACTIONS TO

59:44USE THE SALES APPROACH ON THAT.

59:45OKAY.

59:46>> AND THEN WHAT'S LIKE THE

59:47RATIO FOR YOU TO USE TO

59:50DETERMINE WHAT LIKE FAIR VALUE

59:52.

59:54FOR WHEN YOU'RE DOING THE

59:55INCOME APPROACH LIKE HOW DO YOU

59:57DETERMINE SIMILAR.

59:58IT'S IT'S SIMILAR STATISTICS TO

1:00:01TO WHAT WE PRESENTED.

1:00:02SIMILAR WE HAVE SIMILAR

1:00:03GUIDELINES PRESENTED TO US BY

1:00:04THE DEPARTMENT OF REVENUE.

1:00:06OKAY.

1:00:06>> AND ARE YOU ABLE TO PROVIDE

1:00:08US WITH LIKE THE ASSESSMENT

1:00:09VALUE VERSUS UM THE SALES

1:00:12VALUES TO THOSE UH PROPERTIES

1:00:14THAT YOU DO USE THE.

1:00:15INCOME APPROACH?

1:00:16YES.

1:00:16AWESOME.

1:00:17>> UM YOU LOOK THROUGH MY

1:00:19QUESTIONS.

1:00:22AND THEN DO YOU BREAK IT DOWN

1:00:24BY NEIGHBORHOOD?

1:00:25ARE YOU ABLE TO PROVIDE IT BY

1:00:26NEIGHBORHOOD?

1:00:29UM NEIGHBORHOOD.

1:00:31SO IN THE PRESENTATION WE WE

1:00:33USE ASSESSMENT DISTRICTS UM,

1:00:35AND THAT MIGHT OVERLAP WITH YOU

1:00:38KNOW WHAT WE YOU KNOW, IN

1:00:40BRIGHTON ALLSTON YOU KNOW, WE

1:00:43MIGHT OVERLAP SORRY THAT BAD

1:00:46EXAMPLE SO IN LIKE JAMAICA

1:00:48PLAIN AND ROXBURY WE MIGHT HAVE

1:00:49OVERLAP ASSESSMENT DISTRICTS IN

1:00:51THAT AREA.

1:00:52UM BUT WE CAN PROVIDE YOU KNOW

1:00:54WHAT THE WHAT OUR WHAT WE USE

1:00:56FOR THE ASSESSMENT DISTRICTS

1:00:57AND MAPS OVER TO YOU.

1:00:57GOT IT.

1:00:58>> AND YOU'RE ABLE TO PROVIDE

1:00:59THE SAME INFORMATION IN TERMS

1:01:00OF LIKE A ASAR UH PRD AND

1:01:03EVERYTHING ELSE BASED ON THE

1:01:05ASSESSMENT DISTRICT.

1:01:06YES.

1:01:07>> AWESOME.

1:01:07THAT WOULD BE GREAT.

1:01:09UM, I THINK I THINK FOR NOW UM

1:01:14,THOSE ARE MY QUESTIONS MY

1:01:16COUNCIL COLLEAGUES ASKED A LOT

1:01:17OF GOOD QUESTIONS.

1:01:18OKAY.

1:01:19>> THANK YOU VERY MUCH.

1:01:19I THINK WE'LL.

1:01:20WE'LL HAVE A I HAVE A COUPLE

1:01:22QUESTIONS.

1:01:22WE'LL HAVE A SHORT.

1:01:23SECOND ROUND.

1:01:24>> WE DO HAVE ANOTHER PANEL.

1:01:26UH SO I'M JUST GOING TO GIVE

1:01:27MYSELF THREE MINUTES.

1:01:29UM UH OKAY.

1:01:30SO CAN YOU JUST EXPLAIN US.

1:01:32TO THE BUREAU OF.

1:01:33LOCAL ASSESSMENT LIKE WHAT

1:01:35THEIR ROLE IS AND, UH, IN WHAT

1:01:38YOU DO?

1:01:39YEP.

1:01:40>> SO THE BUREAU OF LOCAL

1:01:41ASSESSMENT IS, UM, AN AGENCY

1:01:44WITHIN THE DEPARTMENT

1:01:45OF REVENUE.

1:01:46THEY ARE THEY ARE OUR

1:01:48REGULATORY AGENCY.

1:01:49THEY NOT ONLY, UM, REGULATE AND

1:01:54THEY BASICALLY PROVIDE CLASSES

1:01:56.

1:01:56THEY ALSO LOOK AT ALL OUR DATA

1:01:57POINTS TO MAKE SURE THAT WE'RE

1:01:59IN LINE WITH ALL.

1:02:00STATE GUIDELINES AND INDUSTRY

1:02:02STANDARDS.

1:02:03UM, THERE'S ABOUT LIKE A 20

1:02:05PAGE REPORT OF MINIMUM

1:02:06STANDARDS THAT WE HAVE TO

1:02:08FOLLOW EVERY YEAR.

1:02:10UM, THEY ALSO DO A FIVE YEAR

1:02:12UH, REEVALUATION.

1:02:13SO THAT'S BASICALLY KIND

1:02:15OF LIKE AN AUDIT.

1:02:16UM, AND IN THAT AUDIT WHERE

1:02:18THEY BASICALLY REVIEW

1:02:19EVERYTHING THAT WE DO ALL OUR

1:02:21PROCEDURES, ALL OUR STANDARDS

1:02:22THEY WE ALSO HAVE TO UM

1:02:25BASICALLY REDO OUR MODEL FROM

1:02:27THE GROUND UP.

1:02:28SO WHEN I MEANT MODEL I MEAN I

1:02:30CALL OUR RESIDENTIAL MODELS UM

1:02:32AND THEN THEY EVALUATE THAT TO

1:02:33MAKE SURE WE'RE WITHIN, YOU

1:02:34KNOW, REGULATORY STANDARDS.

1:02:36OKAY.

1:02:37>> WELL WHEN'S THE NEXT UH,

1:02:38AUDIT?

1:02:39UM, I BELIEVE IT IS IN 2030.

1:02:44OKAY.

1:02:46>> UM, OKAY.

1:02:47SO IF UH.

1:02:50YOU KNOW, IF THE.

1:02:50HOMEOWNER THE HOMESTEAD

1:02:52EXEMPTION I KNOW IT'S NOT

1:02:53CALLED THAT BUT UH, IS UM IS A

1:02:57TOOL YOU HAVE TO APPLY FOR IT

1:03:00TO GET TO GET IT RIGHT.

1:03:01SO DO WE HAVE A WAY

1:03:02OF MEASURING HOW MANY, UH,

1:03:05PEOPLE WHO ARE ELIGIBLE FOR

1:03:07THAT HAVE APPLY?

1:03:09UH, AND WHAT PERCENTAGE AND IF

1:03:11IT'S, YOU KNOW, SORT

1:03:12OF EQUITABLY DISTRIBUTED OR

1:03:13PEOPLE, YOU KNOW OR DO WE HAVE

1:03:15AREAS WHERE PEOPLE JUST AREN'T

1:03:16APPLYING FOR FOR THAT?

1:03:18YEAH, THAT'S A GREAT QUESTION.

1:03:20UM, WE WE CAN GIVE YOU THE DATA

1:03:22ON HOW MANY APPLICANTS THERE

1:03:24ARE.

1:03:24UM, THAT'S ALSO LISTED ON OUR

1:03:26ANALYZE BOSTON DATA SET UM,

1:03:28WHERE WE HAVE, YOU KNOW,

1:03:30PROPERTIES THAT YOU KNOW, WE

1:03:32HAVE A FILTER THAT SAYS YES,

1:03:33YOU KNOW, RESIDENTIAL EXEMPTION

1:03:35ON THERE FOR FISCAL YEAR 26 IN

1:03:36OUR PRIOR YEAR.

1:03:38UM, WHETHER THEY ARE.

1:03:41GETTING IT.

1:03:42AND SHOULD BE ELIGIBLE THAT IS

1:03:45A DIFFICULT QUESTION TO ASK

1:03:46BECAUSE YOU HAVE TO PROVE THAT

1:03:48YOU OWN IT AND OCCUPY IT.

1:03:50SO THE OCCUPANCY PORTION IS YOU

1:03:52KNOW, THE COMPLICATED ONE.

1:03:53IT'S A DO YOU HAVE A SENSE

1:03:54OF LIKE WHAT THE PERCENTAGES

1:03:56OF ELIGIBLE PEOPLE WHO APPLY?

1:03:58YEAH UNFORTUNATELY I WOULDN'T

1:03:59HAVE THAT YOU KNOW UM I DON'T

1:04:02KNOW IF IF THERE'S A SEPARATE

1:04:04DATA SOURCE FOR THAT BUT

1:04:05FORTUNATELY WE DON'T HAVE ONE.

1:04:06OKAY.

1:04:07>> UH, AND THEN I KNOW

1:04:08COUNCILOR FITZGERALD BROUGHT.

1:04:09A CAMERA.

1:04:10UH, SO CAN WE MAKE MANUAL

1:04:13ADJUSTMENTS TO TO THE MODEL AND

1:04:16DO WE.

1:04:17WE CAN SO IN THE CAMERA SYSTEM.

1:04:22FOR THE MODELING I MEAN LIKE

1:04:24THE REGRESSION MODEL.

1:04:25CORRECT.

1:04:25AND OR THE CAMERA SYSTEM?

1:04:28>> UH, WELL.

1:04:28I IN THE CAMERA SYSTEM I DON'T

1:04:29KNOW.

1:04:31SO SO IN THE CAMERA SYSTEM IS

1:04:33BASICALLY THINK OF IT AS DATA

1:04:34MANAGEMENT KIND OF LIKE A FEEL

1:04:35CARD.

1:04:37UM WE DO MAKE CHANGES TO THAT

1:04:39ALL THE YOU KNOW OVERALL MAKE

1:04:40CHANGES TO THAT ALL THE TIME.

1:04:42SO UM A SINGLE FAMILY HOME IF

1:04:44WE GO OUT YOU KNOW UM IF THEY

1:04:46ADDED A KITCHEN WE WOULD ADD A

1:04:47KITCHEN TO THAT ON THE MODEL WE

1:04:49WILL MAKE CERTAIN ADJUSTMENTS

1:04:51UM, JUST TO SEE JUST TO MAKE

1:04:52SURE THAT WE'RE IN LINE WITH,

1:04:54YOU KNOW, OUR INDUSTRY

1:04:55STANDARDS AND RATIOS.

1:04:56OKAY.

1:04:57I MEAN, SO HAVE YOU MADE ANY

1:04:59ADJUSTMENTS THAT GO TOWARD

1:05:01THESE SORT OF HIGH VALUE

1:05:04PROPERTIES TO KIND OF HANDLE?

1:05:07I DON'T DO YOU THINK THAT THERE

1:05:08IS AN ISSUE WITH ASSESSING HIGH

1:05:10VALUE PROPERTIES AND WHETHER

1:05:12YOU DO OR NOT?

1:05:13HAVE WE MADE ANY UH SORT

1:05:16OF ADJUSTMENTS TO DEAL WITH

1:05:17THAT?

1:05:19SO I THINK ON HIGH END

1:05:22PROPERTIES THIS IS THIS IS THE

1:05:24CASE FOR EVERY CITY IN TOWN

1:05:25ACROSS MASSACHUSETTS.

1:05:26WE ARE GOING TO HAVE HIGH END

1:05:29OUTLIERS.

1:05:30UM, AS COUNCILOR CULPEPER

1:05:32MENTIONED, I THINK IT WAS LIKE

1:05:34A $20,000,000.20, 20 MILLION I

1:05:37BELIEVE THAT WAS A TWO FAMILY

1:05:39AND THAT MIGHT HAVE BEEN ONE

1:05:41OF THE MOST EXPENSIVE OR HIGH

1:05:43PRICED SALES IN THE CITY

1:05:45OF BOSTON FOR A TWO FAMILY.

1:05:47UM I HAD MY STAFF TAKE A LOOK

1:05:49AT IT REAL QUICK AND I BELIEVE

1:05:50LIKE ON AVERAGE IN THAT AREA,

1:05:54UM, A SIMILAR TWO FAMILIES SOLD

1:05:56BUT THE LARGER SQUARE FOOTAGE

1:05:57FOR ABOUT 13 MILLION.

1:05:59UM, IT'S ALWAYS DIFFICULT FOR

1:06:01US TO, UH, TRY TO REACH INTO

1:06:02THOSE HIGH VALUE PROPERTIES

1:06:05BECAUSE, UM, IT IS AN OUTLIER

1:06:08AND OUR RESPONSIBILITY IS TO

1:06:09LOOK AT.

1:06:10THE THE PATTERN AND THE FOREST

1:06:12,NOT JUST ONE INDIVIDUAL TREE.

1:06:14UM, BUT IF THERE WERE MORE $20

1:06:17MILLION SALES OF TWO FAMILIES

1:06:18THAT EVENTUALLY COME ON, YOU

1:06:19KNOW THAT ARE SOLD.

1:06:20UM, THAT'S A MARKET INDICATOR

1:06:22TO US THAT YOU KNOW, TWO

1:06:24FAMILIES IN THAT AREA WOULD BE

1:06:25YOU KNOW, NOT AT AROUND 20

1:06:26MILLION.

1:06:27OKAY.

1:06:27>> YEAH.

1:06:27I MEAN I GUESS SO A PEOPLE SELL

1:06:31THEIR PROPERTIES, YOU KNOW, AND

1:06:33BUY PROPERTIES FOR ALL KINDS

1:06:34OF REASONS LIKE SOMEBODY MIGHT,

1:06:36YOU KNOW, BE LEAVING THE

1:06:37COUNTRY SO THEY JUST SELL THEIR

1:06:39PROPERTY FOR HALF OF WHAT IT'S

1:06:41WORTH OR UH, SOMEBODY MAY JUST

1:06:44REALLY WANT TO LIVE AND I DON'T

1:06:45KNOW WHERE THAT WAS.

1:06:46BACK BAY, BEACON HILLS

1:06:47SOMETHING.

1:06:48UM IT'S A THEY'RE GOING TO PAY

1:06:50ALMOST DOUBLE WHAT IT'S WORTH.

1:06:52WHAT DO YOU DO IN AN AVERAGE.

1:06:54YEAR WHETHER YOU'RE GOING TO

1:06:56HAVE THOSE OUTLIERS TODAY WHAT

1:06:57DO YOU DO WITH THEM.

1:06:58YOU JUST CAST THEM TO THE SIDE

1:07:01WHEN YOU DO YOUR SORT

1:07:03OF RIGOROUS YOU KNOW SORT

1:07:04OF EQUITY VERTICAL EQUITY

1:07:06ANALYSIS OR DO THEY FACTOR IN.

1:07:09SO YEAH GREAT QUESTION.

1:07:10WE'RE MAINLY LOOKING FOR ARM'S

1:07:11LENGTH TRANSACTIONS UM BECAUSE

1:07:14OUR OUR MANDATE IS TO LOOKING

1:07:16FOR A FAIR CASH VALUE.

1:07:18SO UM SOME EXAMPLE THAT I

1:07:20MENTIONED EARLIER AND YOU

1:07:21MENTIONED TO WHERE LIKE

1:07:22FORECLOSURE SALES UM UH SALES

1:07:26YOU KNOW.

1:07:27BETWEEN LIKE A.

1:07:28DIVORCEE OR DIVORCE SAY UM

1:07:30THINGS LIKE THOSE WE WOULD NOT

1:07:31INCLUDE INTO THIS MODEL BUT WE

1:07:32WILL WE DO CAPTURE THOUGH IS UM

1:07:34WHO THE NEW OWNERS ARE TO MAKE

1:07:36SURE THAT, YOU KNOW, WE'RE

1:07:37SETTING THE TAX BILLS

1:07:38APPROPRIATELY TO THE CORRECT

1:07:38PERSON.

1:07:40OKAY.

1:07:41>> AND THEN UM, SO ONE OF THE

1:07:43OTHER ISSUES WITH THE SORT

1:07:46OF WAYS TO COMBAT PASSIVITY,

1:07:50YOU KNOW, IS TO DO ASSESSMENTS

1:07:52ON A MORE SORT OF REGULAR

1:07:54BASIS.

1:07:54I THINK SOME PLACES THEY DON'T

1:07:55DO THE ASSESSMENTS UNTIL 5 OR

1:07:5810 YEARS OR SO.

1:08:00WHAT WHERE DO WE STAND ON AND

1:08:02LIKE THAT TOOL?

1:08:03SO UM IN SOME COMMUNITIES I

1:08:06BELIEVE WHAT THEY DO IS THEY

1:08:08THEY DO A REASSESSMENT AND THEN

1:08:10THEY AS YOU MENTIONED LEAVE A

1:08:11FLAT FOR 510 YEARS UNTIL

1:08:13ANOTHER REASSESSMENT CYCLE

1:08:15OCCURS.

1:08:16UM WE ARE CONSTANTLY UM

1:08:19REASSESSING VALUES EVERY YEAR.

1:08:21UM SO WE APPLY TRENDS TO THEM

1:08:24BECAUSE EVENTUALLY ON OUR FIVE

1:08:26YEAR, YOU KNOW, UM CYCLE WE ARE

1:08:28GOING TO HAVE TO UH UNDER THE

1:08:29DEPARTMENT OF REVENUE WE ARE

1:08:30GOING TO REVALUE ALL PROPERTIES

1:08:33.

1:08:34SO UM WE DON'T WANT THAT IF

1:08:36WE'RE IN A WE'RE AN

1:08:37APPRECIATING MARKET RIGHT NOW.

1:08:38UM, WE DON'T WANT THAT HIT TO

1:08:41BE STAGGERING FOR HOMEOWNERS

1:08:44AND YOU KNOW UNDER GUIDELINES

1:08:46YOU KNOW WE WE'RE WE'RE ABLE TO

1:08:48YOU KNOW, ACCOUNT FOR THOSE

1:08:49MARKET TRENDS UPWARDS OR

1:08:50DOWNWARDS OKAY.

1:08:53>> AND THEN I GUESS UH THE DO

1:08:55YOU USE THE LINCOLN LAND UH YOU

1:08:58KNOW THE THEIR VERTICAL EQUITY

1:09:01APP.

1:09:01YEP.

1:09:02>> SO WE DO THE LINCOLN WE DO

1:09:03USE THE LINCOLN LAND INSTITUTE

1:09:05VERTICAL EQUITY APP.

1:09:06UM WE RUN THEM.

1:09:08SINCE WE FOUND OUT ABOUT I

1:09:09THINK 2020 24 OR 2025 UM AND

1:09:13THEY ALSO PART OF THE REPORT

1:09:15ALSO USES UM INDUSTRY STANDARDS

1:09:17FROM THE INTERNATIONAL

1:09:19ASSOCIATION OF HOUSING OFFICERS

1:09:21UM IN THAT APPLICATION.

1:09:23SO WE MET ALL THOSE STANDARDS

1:09:25OKAY.

1:09:25AND IT JUST FOR FOR THE NON

1:09:29MATHEMATICIANS OR WHATEVER IT

1:09:30IS THAT USE THESE THINGS SO

1:09:32THERE'S A BUNCH OF DIFFERENT

1:09:33METRICS IN THERE LIKE DO YOU

1:09:35LIKE I KNOW THE THE THEY SAY

1:09:38NOT TO LOOK AT ONE METRIC YOU

1:09:39KNOW TRY TO LOOK AT ALL

1:09:40OF THEM.

1:09:41WHY IS THAT OR DO YOU AGREE

1:09:43WITH THAT.

1:09:44UM YOU KNOW WHY WOULD THAT BE

1:09:46THE CASE?

1:09:46YEP.

1:09:47>> SO UM ON THE LINCOLN LAND

1:09:48AND CITY PORTION OF IT THERE

1:09:49ARE SOME UM APART FROM THE

1:09:52INDUSTRY INDUSTRY, YOU KNOW,

1:09:54METRICS THAT THEY USE THEY USE

1:09:57UM UM FAIRLY NEW METRICS UM,

1:09:59THAT ARE USED AND YOU KNOW, NOT

1:10:03ALL METRICS ARE THE SAME OR

1:10:05EVEN THEY MEASURE CERTAIN OTHER

1:10:07ATTRIBUTES AND SO JUST TAKE

1:10:08THIS AS A WHOLE, UM, FOR YOU

1:10:11KNOW, THE REPORTING OF IT, UM,

1:10:15THAT'S I SUPPOSE I CAN SAY.

1:10:17OKAY THAT'S FINE.

1:10:18SO LET'S GO FOR A SECOND ROUND

1:10:20.

1:10:21UH CAN WE HOW ABOUT COULD WE DO

1:10:25THREE MINUTES?

1:10:26UH THAT'S FINE.

1:10:26OKAY.

1:10:27AND THEN UH, WE IF PEOPLE HAVE

1:10:30A QUICK FOLLOW UP AFTER THIS

1:10:31ONE, I.

1:10:32>> WANT.

1:10:32TO COME BACK TO THESE.

1:10:33DISCREPANCIES BETWEEN THE LET'S

1:10:37SAY THE $21 MILLION PROPERTY

1:10:41THAT WAS ASSISTED 12 MILLION

1:10:44AND THE $346,000 PROPERTY THAT

1:10:54WAS ASSESSED EXACTLY AT 346,000

1:10:57.

1:10:58HOW DO YOU ACCOUNT FOR THOSE

1:11:00DISCREPANCIES THAT I'VE BEEN

1:11:01ASKING YOU ABOUT CONSISTENTLY?

1:11:03YEP.

1:11:04>> SO ON THE HIGHER END ONE I

1:11:07BELIEVE THAT THEY WERE USING UM

1:11:08A SALE THAT I WAS OUTSIDE

1:11:10OF OUR STATE OUR REGULATORY

1:11:12GUIDELINES.

1:11:12THAT'S PART ONE.

1:11:13PART TWO IS ARE THEY.

1:11:15>> WERE THEY WERE DOING WHAT

1:11:16NOW.

1:11:16SO THE SALE THAT WAS THAT WAS

1:11:18USED IN THE REPORT I BELIEVE

1:11:19WHETHER YOU'RE USING COUNTY OR

1:11:2125 SALES WHICH UNDER DEPARTMENT

1:11:23OF REVENUE GUIDELINES WERE NOT

1:11:25ABLE TO USE SO WE'RE ABLE TO

1:11:27YOU ONLY USED CALENDAR YEAR 24

1:11:29SALES IN THAT ASSESSMENT.

1:11:31SO FOR FISCAL YEAR 26 WE CAN

1:11:33ONLY USE CALENDAR YEAR 24

1:11:34SALES.

1:11:34NOW THESE WERE THESE WERE

1:11:36LOWEST SINGLE FAMILY

1:11:38RESIDENTIAL SALES 2024.

1:11:41YES YEP.

1:11:422024 YEP.

1:11:43>> SO ON THE HIGH END I BELIEVE

1:11:44THEY USE CALENDAR YEAR 25 SALES

1:11:46AND THEN ON THE LOW END THEY

1:11:48USE CALENDAR YEAR 24 SALES.

1:11:51UM AND SO AS AS I MENTIONED

1:11:53EARLIER WHERE WE HAVE A

1:11:56REGRESSION MODEL SO WE'RE

1:11:58TRYING TO IT'S TRYING TO FIT ON

1:11:59THE BEST LINE IT CAN ON ALL

1:12:02THESE PROPERTY ATTRIBUTES AND

1:12:03SALES WITHIN THAT AREA

1:12:05SOMETIMES ARE ON THE MARK.

1:12:06SOMETIMES WE'RE A LITTLE HIGH

1:12:08SOMETIMES WE'RE A LITTLE LOW.

1:12:09BUT HOW DO YOU EXPLAIN FOR SUCH

1:12:12DISCREPANCIES DISCREPANCIES

1:12:15CONSISTENTLY I'M LOOKING AT THE

1:12:16LIST HERE 21 MILLION SETS IT

1:12:21ME 17 MILLION SETS OF 15

1:12:22MILLION EVEN 15 MILLION

1:12:26ASSESSED AT 4,000,014 MILLION

1:12:29ASSESSED AT 4,000,014 MILLION

1:12:32ASSESSED AT NINE FOR 10 MILLION

1:12:35SETS AT 614 MILLION.

1:12:37HOW DO YOU EXPLAIN THAT?

1:12:40CONSISTENT DISCREPANCIES IN THE

1:12:44SALES FOR HIGH END PROPERTIES

1:12:46AND DRAMATICALLY EXTREMELY LOW

1:12:50ASSESSMENT IN THE SAME

1:12:52PROPERTIES?

1:12:52HOW DO YOU EXPLAIN FOR THOSE

1:12:54DISCREPANCIES.

1:12:56SO ON THE ON THE HIGH END

1:12:57PROPERTIES LIKE THEY'RE USING

1:12:59CALENDAR YEAR 25 SALES SO WE

1:13:00CAN'T LOOK AT THOSE SALES.

1:13:03UM WHEN WE'RE LOOKING AT THAT.

1:13:04>> I'M LOOKING AT THEM NOW I'M

1:13:06ASKING YOU HOW DO WE EXPLAIN

1:13:07FOR THESE DISCREPANCIES THAT

1:13:09ARE SO WIDE WHEN YOU COME TO

1:13:14THE HIGH END PROPERTIES AND

1:13:17THEY'RE ALMOST EXACT WHEN YOU

1:13:19COME TO THE LOWER END

1:13:21PROPERTIES.

1:13:22SO THIS IS BASED OFF OF THAT UM

1:13:25I BELIEVE IT'S LIKE A REPORT

1:13:26BUT HOW DO.

1:13:26>> YOU EXPLAIN FOR THE

1:13:28DISCREPANCIES.

1:13:30IN LOOK LET'S SAY THE ONE THAT

1:13:31WAS WE PUT IT IN THE NEWSPAPER

1:13:33.

1:13:33YES 20 MILLION IT WAS SAYS THAT

1:13:36WHAT WAS IT 12.

1:13:38YEP.

1:13:39HOW DO YOU EXPLAIN FOR THOSE

1:13:41DISCREPANCIES IN THE WELL LET

1:13:43ME JUST SAY IN THE BACK BAY

1:13:46BEACON HILL PROPERTIES AND WHEN

1:13:48YOU GET OUT TO ROXBURY AND

1:13:51DORCHESTER THE ASSESSMENTS ARE

1:13:53ALMOST EXACT.

1:13:54HOW DO YOU EXPLAIN FOR THOSE

1:13:56KIND OF DISCREPANCIES.

1:13:59SO THAT SALE IN THAT NEWSPAPER

1:14:00WAS USING CALENDAR YEAR?

1:14:02>> NO NO NO NO NO TELL ME HOW

1:14:04YOU EXPLAIN FOR THESE

1:14:06DISCREPANCIES.

1:14:07>> YEP I AM SO WE DO NOT

1:14:10ACCOUNT FOR THAT 2025 SALE AND

1:14:12IN OUR ANALYSIS.

1:14:14SO WE WILL ACCOUNT FOR THAT

1:14:15SALE THIS YEAR FOR FISCAL YEAR

1:14:1727 BECAUSE THAT SALE IS OUTSIDE

1:14:20OF OUR.

1:14:21OKAY SO OF.

1:14:22OUR CALENDAR YEAR LIKE

1:14:23ASSESSMENTS.

1:14:23FOR THIS YEAR.

1:14:24HOW DO YOU EXPLAIN FOR THESE

1:14:28DISCREPANCIES?

1:14:28THAT'S ALL I WANT TO KNOW WHY

1:14:31WHEN YOU COME TO BACK BAY IN

1:14:33BEACON HILL THE ASSESSMENTS ARE

1:14:36SO LOW AND MULTIMILLION DOLLAR

1:14:38PROPERTIES AND THEN WHEN YOU

1:14:40GET INTO ROXBURY AND DORCHESTER

1:14:42THE ASSESSMENTS ARE ALMOST

1:14:44EXACT AS THE SALE PRICE.

1:14:47HOW DO YOU GET TO THOSE

1:14:49DISCREPANCIES?

1:14:51BECAUSE WE'RE LOOKING AT

1:14:52PATTERNS ACROSS NEIGHBORHOODS.

1:14:55SO WE'RE LOOKING AT SALES IN

1:14:57THE BEACON HILL AREA FOR

1:14:58EXAMPLE.

1:14:58RIGHT.

1:14:59>> AND THE PATTERN IS THAT

1:15:00HERE'S THE PATTERN DOWNTOWN.

1:15:03THIS HAS BEEN A REAL LOW OUT IN

1:15:05THE COMMUNITY WHERE THE POOR

1:15:08FOLKS LIVE.

1:15:09THE ASSESSMENTS ALMOST EXACTLY

1:15:12AS A SALES.

1:15:13HOW DO YOU EXPLAIN FOR THAT?

1:15:16SO ARE WE GOING TO HAVE THE

1:15:17REPORT OR ARE WE GOING BASED

1:15:20OFF OF OUR YOU KNOW, ASSESSMENT

1:15:22THE SALE RATIOS.

1:15:24ASSESSMENTS TO SALES.

1:15:25SO AND OUR ASSESSMENT TO SALE

1:15:26RATIOS OVERALL WE'VE MET ALL

1:15:29WE'VE MET ALL DA GUIDELINES AND

1:15:31INDUSTRY GUIDELINES.

1:15:32BUT YEP WHAT.

1:15:34>> I'VE SAID IS HOW DO YOU HOW

1:15:36DO THESE DISCREPANCIES TAKE

1:15:38PLACE THAT ARE SO FAR BETWEEN

1:15:42EACH OTHER.

1:15:43HOW DO YOU GET TO THOSE

1:15:44DISCREPANCIES?

1:15:45I'M NOT TALKING ABOUT MANY

1:15:46RATIOS I'M NOT I'M WELL I'M

1:15:48HERE YOU DIDN'T NEED SOMETHING

1:15:50BECAUSE IT'S SUCH WIDE

1:15:52DISCREPANCIES.

1:15:54WHY ARE THE DISCREPANCIES

1:15:55BETWEEN THE ROXBURY AND

1:15:57MATTAPAN PROPERTIES SO MUCH

1:16:00DIFFERENT FROM THE

1:16:02DISCREPANCIES THAT YOU FIND IN

1:16:04THE HIGHER END PROPERTIES?

1:16:06HOW DOES THAT HAPPEN?

1:16:07SO IN THE REPORT THEY'RE USING

1:16:09SALES THAT WE CAN'T USE FOR

1:16:11FISCAL YEAR 26.

1:16:13WE WILL BE USING THOSE IN

1:16:14FISCAL YEAR 27 IN IN OUR

1:16:17ANALYSIS.

1:16:17AND THEN WE'RE GOING TO BE

1:16:19CHECKING TO SEE UM ALL THE WE

1:16:21HAVE CORRECT PROPERTY THAT

1:16:22ATTRIBUTES FOR THE HIGH END

1:16:23PROPERTIES AND LOW END

1:16:24PROPERTIES AND ALL YOU KNOW

1:16:26QUALIFIED SALES IN THE BOSTON

1:16:28AREA.

1:16:29DO YOU KNOW.

1:16:29HOW IT HAPPENS IF YOU IF YOU

1:16:32DON'T JUST SAY YOU DON'T KNOW

1:16:34I'M JUST TRYING TO GET TO HOW

1:16:36DO WE HAVE SUCH WIDE

1:16:39DISCREPANCIES IN THE AREAS

1:16:42OF BOSTON WHERE THE POORER

1:16:46FOLKS LIVE VERSUS THE VERY LOW

1:16:51ASSESSMENTS IN THE HIGH END

1:16:53AREAS WITH $1 MILLION LOOK, THE

1:16:56CITY IS LOSING MILLIONS

1:16:57OF DOLLARS BECAUSE IN THE BACK

1:17:01BAY BEACON HENRY HILL EVERY

1:17:03YEAR THE ASSESSMENTS ARE SO

1:17:06MUCH LOWER THAN THE SALE AND

1:17:09THE VALUE OF THE PROPERTY.

1:17:11AND SO WHAT I'M TRYING TO GET

1:17:13TO IS HOW DO WE.

1:17:16MAKE THAT ASSESSMENT CLOSER TO

1:17:21THE ACTUAL VALUE OF THE

1:17:23PROPERTY OR THE VALUE OF THE

1:17:25SALE?

1:17:25WE WE CAN DO IT IN THE POOR

1:17:27COMMUNITIES BUT WE CAN'T DO IT

1:17:29IN THE RICH COMMUNITY.

1:17:32SO SO I THINK WE'RE TALKING

1:17:33ABOUT THE SAME THING UM IN ONE

1:17:36WAY OR ANOTHER.

1:17:36BUT SO IN THE BEACON HILL AREA

1:17:39WE HAVE YOU KNOW THAT $20

1:17:41MILLION SALES BUT YOU KNOW, AS

1:17:43I AS I MENTIONED EARLIER, YOU

1:17:44KNOW, WE ALSO HAVE $13 MILLION

1:17:46SALES, SIMILAR ATTRIBUTES I

1:17:48THINK WE HAVE A $7 MILLION.

1:17:49SALE.

1:17:50>> $9 BILLION SALE.

1:17:51SO WE'RE GOING TO BE LOOKING AT

1:17:52THE OVERALL PATTERN FOR THOSE

1:17:54TWO FAMILY SALES IN THE BEACON

1:17:55HILL AREA.

1:17:56UM, WHAT WE'RE NOT GOING TO DO

1:17:59IS WE'RE NOT GOING TO VALUE ALL

1:18:01TWO FAMILIES AT $20 MILLION

1:18:03WITHOUT ADEQUATE SUPPORT.

1:18:06I GUESS WE HAVE TO TALK LET'S

1:18:08TALK LATER BECAUSE I THINK THIS

1:18:09IS SOMETHING WE REALLY NEED TO

1:18:10LOOK AT CLOSER BECAUSE THERE'S

1:18:13A MAJOR PROBLEM HERE THAT WE

1:18:15CAN'T SEEM TO GET TO WHY IT

1:18:17TAKES PLACE THE WAY IT DOES.

1:18:19THANK YOU.

1:18:20OKAY.

1:18:20>> THANK YOU,

1:18:21COUNCILOR CULPEPER.

1:18:22UH, COUNCILOR FLYNN THREE

1:18:24MINUTES.

1:18:26THANK YOU, MR CHAIR.

1:18:29I WAS LISTENING CLOSELY TO.

1:18:30THE COMMENTS BY

1:18:33COUNCILOR CULPEPER AND.

1:18:34I AGREE WITH THEM.

1:18:36I ALSO KNOW THIS WAS A.

1:18:38ISSUE SENATOR COLLINS PROVIDED

1:18:41EXCEPTIONAL LEADERSHIP ON AS

1:18:43WELL IN SUPPORT OF TAXPAYERS

1:18:45ACROSS.

1:18:46>> AND ACROSS.

1:18:46>> THE CITY.

1:18:49TAXPAYERS IN MY OPINION

1:18:50TAXPAYERS.

1:18:51>> WANT TO SEE MEANINGFUL.

1:18:52REFORM OF HOW WE ASSESS

1:18:55PROPERTY TO ENSURE THAT.

1:18:58THE TAX BURDEN.

1:19:01IS DISTRIBUTED.

1:19:02FAIRLY EQUALLY AND THAT NO

1:19:04GROUP OR NO NEIGHBORHOOD.

1:19:07IS DISPROPORTIONATELY BURDENED

1:19:08.

1:19:09I THINK THAT'S THE QUESTION FOR

1:19:12TODAY.

1:19:13AND I.

1:19:14>> STILL THINK WE DON'T HAVE

1:19:15ANSWERS ON IT.

1:19:16EVERY HOMEOWNER SHOULD BE

1:19:18ASSESSED ACCORDING TO THE SAME

1:19:20STANDARDS AND IN A TRANSPARENT

1:19:23.

1:19:23CONSISTENT METHODOLOGY.

1:19:26WE DON'T KNOW IF THAT'S TAKING

1:19:27PLACE.

1:19:28FINDING SOLUTIONS TO OUR.

1:19:30FISCAL CHALLENGES MUST INCLUDE

1:19:32PROVIDING MEANINGFUL PROPERTY

1:19:35TAX RELIEF TO BOSTON RESIDENTS

1:19:37.

1:19:37I ALSO BELIEVE WE AS A CITY

1:19:40INCLUDING CITY COUNCIL WE MUST

1:19:43DEMONSTRATE.

1:19:43FISCAL DISCIPLINE,

1:19:45ACCOUNTABILITY, TRANSPARENCY,

1:19:48RESPONSIBILITY IN IN SPENDING.

1:19:53I DON'T BELIEVE WE'RE DOING

1:19:54THAT.

1:19:56MY MY QUESTION IS.

1:20:01DOES BOSTON REALIZE THAT THE

1:20:0510% INCREASE ON AN INCREASE IN

1:20:07PROPERTY TAXES ONE YEAR.

1:20:10AND THEN.

1:20:11>> 13 THE NEXT YEAR OVER THE

1:20:13LAST TWO YEARS SO BASICALLY 23%

1:20:16PROBABLY GOING UP ANOTHER 10%

1:20:18AGAIN NEXT YEAR.

1:20:20SO SOMEWHERE UP 35%.

1:20:22DO DO DO YOU.

1:20:23UNDERSTAND THE FINANCIAL BURDEN

1:20:26IT'S HAVING ON LOW INCOME

1:20:29RESIDENTS THAT OWN PROPERTIES

1:20:30PROPERTY IN BOSTON?

1:20:33THAT'S A GREAT QUESTION

1:20:34COUNCILOR.

1:20:36SO WE UNDERSTAND THAT YOU KNOW

1:20:38ONE COMPONENT OF THIS IS

1:20:39PROPERTY TAX VALUATION BASED

1:20:42OFF OF YOU KNOW, WHAT THE

1:20:44MARKET IS SHOWING US YEAR OVER

1:20:45YEAR.

1:20:46AND THE OTHER PORTION OF IT IS

1:20:47WHAT THE PROPERTY TAX RATE IS

1:20:48GOING TO KIND OF GO HAND IN

1:20:50HAND INTO THAT UM WE ARE BOUND

1:20:53BY.

1:20:54STATE REGULATIONS TO VALUE

1:20:56PROPERTIES AT MARKET VALUE.

1:20:59UM AND WE FOLLOW ALL INDUSTRY

1:21:02STANDARDS, OUR DEPARTMENT

1:21:03OF REVENUE RIGOROUSLY CHECKS

1:21:05OUR OUR NUMBERS TO MAKE SURE

1:21:07THAT, YOU KNOW, WE ARE FAIRLY

1:21:09AND EQUITABLY BUT WHO ARE DOING

1:21:11PROPERTIES ACROSS THE CITY.

1:21:13>> WHO IS THE ONLY PERSON IN

1:21:14THE CITY THAT CAN INCREASE

1:21:15PROPERTY TAXES?

1:21:17WHO IS THE PERSON WHO CAN

1:21:19INCREASE PROPERTY TAXES?

1:21:20YEAH.

1:21:21SO THE CITY COUNCIL WILL DECIDE

1:21:24ON WHAT TYPE OF SHIFT YOU KNOW

1:21:26THE PROPERTY TAX RATE WILL BE

1:21:28AND ANOTHER PORTION OF IT IS

1:21:30WHAT THE PROPERTY TAX VALUATION

1:21:31IS.

1:21:32BUT THERE'S NO SINGLE PERSON

1:21:34THAT CAN INCREASE PROPERTY

1:21:35TAXES IN.

1:21:36>> THE.

1:21:37CITY OF BOSTON THEN RIGHT?

1:21:39NO.

1:21:40>> OKAY.

1:21:41>> UM I.

1:21:42>> JUST WANT.

1:21:42>> TO GO BACK TO MY QUESTION

1:21:43ABOUT DO WE UNDERSTAND THE PAIN

1:21:46PEOPLE ARE GOING THROUGH?

1:21:47WHAT WAS THAT.

1:21:49A VARIETY STORE IN SOUTH BOSTON

1:21:51TWO WEEKS AGO ON F STREET F AND

1:21:54WEST WEST FIFTH STREET AND A

1:21:56GUY WAS BUYING ONE OF THOSE

1:21:58MACARONI KRAFT MACARONI BOXES

1:22:02AND HE'S LOOKING AT THE.

1:22:03BOX AND HE'S LOOKING AT THE

1:22:05PRICE.

1:22:06AND I SAID TO HIM HIS NAME IS

1:22:07BILL.

1:22:08I SAYS BILL, WHAT ARE YOU

1:22:08LOOKING AT THE PRICE FOR?

1:22:09HE SAID ED I CAN'T AFFORD THIS

1:22:11KRAFT MAC MACARONI AND CHEESE

1:22:13BECAUSE MY PROPERTY TAXES WENT

1:22:15UP SIGNIFICANTLY AND AND I'M

1:22:17STRUGGLING TO TO PUT FOOD ON

1:22:19THE TABLE.

1:22:21THAT'S THE PAIN PEOPLE ARE

1:22:22GOING THROUGH RIGHT NOW ACROSS

1:22:24THE CITY OF BOSTON.

1:22:25THANK YOU, MR CHAIR.

1:22:26OKAY COUNCILOR.

1:22:27FLYNN THANK YOU,

1:22:28COUNCILOR FITZGERALD.

1:22:30THANK YOU.

1:22:31CHAIR.

1:22:31UH.

1:22:32>> I.

1:22:32JUST WANT TO MAKE SURE YOU MAY

1:22:35HAVE SAID IT EARLIER.

1:22:36>> I WANT TO MAKE SURE I GOT.

1:22:37THE NUMBER OF PEOPLE WHO ARE

1:22:38ELIGIBLE.

1:22:39UH, FOR THE RESIDENTIAL.

1:22:40EXEMPTION VERSUS THE NUMBER

1:22:41OF PEOPLE THAT ARE ACCEPTING

1:22:42IT.

1:22:43DO WE HAVE.

1:22:43>> THAT DELTA.

1:22:44THE NUMBER OF PEOPLE WHO

1:22:46APPLIED VERSUS THE NUMBER

1:22:48OF PEOPLE WHO HAVE BEEN GRANTED

1:22:49THE RESIDENTIAL EXEMPTION

1:22:50RATES.

1:22:50OVER 75,000 PROPERTIES

1:22:52RECEIVED.

1:22:53>> THE RESIDENTIAL CORRECT.

1:22:54HOW MANY ARE ELIGIBLE.

1:22:57ELIGIBLE VERSUS APPLIED OR ARE

1:22:59WE TALKING ABOUT ELIGIBILITY OR

1:23:00PEOPLE WHO APPLY?

1:23:01I'M TALKING ABOUT ELIGIBLE.

1:23:03SO IT'S LIKE WE WE ALL WE ALL

1:23:05SORRY I JUST WE ALL OWN OUR

1:23:06HOUSES AND WE LIVE IN THEIR

1:23:08HOUSES.

1:23:09COUNCILOR FITZGERALD AND FLYNN

1:23:10APPLY THERE 100% BUT WE DON'T

1:23:13APPLY IF THE REST OF US DON'T

1:23:14APPLY.

1:23:15I WOULD SAY YOU KNOW WE'RE LESS

1:23:16OF 50% OF PEOPLE ARE GETTING

1:23:18THE EXEMPTION WHO ARE ELIGIBLE.

1:23:20SO I THINK THAT'S THE QUESTION

1:23:21OF WHO WHO LIKE HOW MANY.

1:23:23ELIGIBLE PROPERTIES ARE THERE

1:23:24IN THIS.

1:23:25>> YEAH SO THE DOTS ON THAT ONE

1:23:27IS SO WE HAVE WHO OCCUPIES IT

1:23:30THAT IS THE FIRST QUALIFIER AND

1:23:31WE KNOW WHO THAT IS.

1:23:32THE SECOND QUALIFIER IS

1:23:34OCCUPANCY.

1:23:34IS THAT YOUR PRIMARY RESIDENCE.

1:23:36AND THAT IS THE SECOND PORTION

1:23:37THAT WE DON'T HAVE DATA POINTS

1:23:40ON.

1:23:40SO WE CAN'T GIVE.

1:23:41>> YOU.

1:23:41WHAT THAT.

1:23:42>> IS THE ELIGIBILITY PORTION

1:23:43OF IT.

1:23:43OKAY.

1:23:45SO WE I GUESS THE ANSWER IS

1:23:46THEN.

1:23:46WE'RE NOT SURE BECAUSE.

1:23:48WE DON'T.

1:23:49COLLECT THE.

1:23:49DATA OF THAT.

1:23:50WE'RE NOT SURE HOW MANY

1:23:52PROPERTIES ARE ELIGIBLE FOR

1:23:53RESIDENTIAL.

1:23:54IF YOU HAVE A DATA SET TO

1:23:55PROVIDE US WE'LL WE'LL GLADLY

1:23:57TAKE A LOOK.

1:23:58>> AT IT OKAY OKAY.

1:23:59GOTCHA.

1:24:00AND THEN.

1:24:01WHAT WOULD IT TAKE.

1:24:03IN A MINUTE AND 30S UM.

1:24:06WHAT WOULD IT TAKE TO LOOK AT A

1:24:09DIFFERENT TAX STRUCTURE.

1:24:11FOR CERTAIN CLASSES LIKE IF

1:24:12YOU'RE LOOKING AT MIDDLE SCHOOL

1:24:14YOU KNOW MIDDLE CLASS HIGH

1:24:15CLASS LOW BECAUSE WHATEVER IT

1:24:16MAY BE UM, AND I'M JUST

1:24:17THINKING ABOUT FAMILIES TO BE

1:24:19HONEST, JUST MIDDLE CLASS

1:24:20FAMILIES IN THE CITY OF BOSTON.

1:24:21WHAT WOULD IT.

1:24:22TAKE TO RESTRUCTURE.

1:24:24TAXES TO.

1:24:24>> MAYBE PROVIDE.

1:24:26THEM A DIFFERENT INCENTIVE.

1:24:27>> OR A UH.

1:24:28>> A HIGHER.

1:24:29UM, UH, RESIDENTIAL EXEMPTION

1:24:32OR UH LIKE WHAT IS THE PROCESS

1:24:35WE WOULD HAVE TO GO THROUGH?

1:24:36YOU DON'T HAVE TO GET INTO THE

1:24:37NUMBERS WITH ME BUT LIKE ALL

1:24:38RIGHT JOHN, IF YOU WANT TO

1:24:39START BREAKING UP YOU KNOW,

1:24:41LANDLORDS THAT DON'T LIVE IN

1:24:42THE CITY THAT OWN MORE THAN

1:24:43SEVEN PLUS UNITS PAY THIS TAX,

1:24:45YOU KNOW, UH, HOME.

1:24:46OWNED FAMILY RESIDENTIAL AND

1:24:49THEY LIVE IN EITHER A ONE, 2 OR

1:24:503 FAMILY HOME UH, WOULD BE YOU

1:24:52KNOW.

1:24:53>> GET THIS.

1:24:53TYPE OF EXEMPTION OR ONLY A TAX

1:24:55AT THIS MUCH AND HIGHER VALUE

1:24:57JUST.

1:24:57>> WHAT WOULD.

1:24:58LEAVE THE NUMBERS OUT.

1:24:59>> OF IT?

1:24:59WHAT WOULD IT TAKE TO CREATE A

1:25:00NEW STRUCTURE?

1:25:01>> WHAT IS THE PROCESS?

1:25:02YEP.

1:25:03>> SO UM ALL OF OUR EXEMPTIONS

1:25:06ARE BASED OFF OF STATE LAW.

1:25:08SO YOU WOULD HAVE TO GO THROUGH

1:25:11WHATEVER PROCESS AT.

1:25:12HOME YOU.

1:25:13>> ADDITION.

1:25:13TO THE STATE.

1:25:14>> OR.

1:25:14WHATEVER PROCESS AS THEY ARE UM

1:25:17AND.

1:25:18GO THROUGH THAT.

1:25:19OKAY SO THAT.

1:25:21>> IT WOULDN'T TRIGGER ANYTHING

1:25:22ELSE BUT JUST SAY IF THE IF THE

1:25:23GOVERNOR SAID UH OR THE

1:25:25LEGISLATURE SAID.

1:25:27WE AGREE WITH THIS.

1:25:27AND YOU KNOW, AGAIN THERE WAS

1:25:30SOME VARIATION OF NUMBERS

1:25:31THROUGHOUT THAT MADE IT FAIR

1:25:32ENOUGH FOR EVERYBODY.

1:25:34UH AND THAT WAY IT COULD BE

1:25:36SIGNED INTO LAW AND THAT WOULD

1:25:37BE THE NEW THAT THERE'S NO UH

1:25:39ANYTHING ELSE THAT WOULD HAVE

1:25:40TO.

1:25:40YES.

1:25:40>> AND I BELIEVE THIS

1:25:41ADMINISTRATION DOES HAVE A

1:25:42COUPLE, UM, PETITIONS UP TO THE

1:25:44LEGISLATURE RIGHT NOW.

1:25:45UNDERSTOOD.

1:25:46>> UM, OKAY.

1:25:47THANK YOU VERY MUCH.

1:25:48YEAH.

1:25:48>> UH THANK YOU COUNCILOR.

1:25:50UH, WE'RE L.

1:25:52THANK YOU.

1:25:53>> UM, WHEN WE'RE LOOKING AT

1:25:55THE INCOME.

1:25:56APPROACH.

1:25:57>> UM, AND I'M ASSUMING THAT

1:25:59YOU'RE USING RENT AND EXPENSES

1:26:02,WHERE DO YOU GATHER THAT

1:26:03INFORMATION FROM?

1:26:05UM, TO COME UP WITH YOUR

1:26:07ASSUMPTIONS AROUND THE INCOME

1:26:08APPROACH.

1:26:09HOW OFTEN IS IT UPDATED?

1:26:12SO WE USE ON THE INCOME

1:26:13APPROACH PORTION OF IT WE

1:26:15COLLECT UM.

1:26:17WE BASICALLY DO A MAILING OUT

1:26:18TO PROPERTY OWNERS LIKE

1:26:19COMMERCIAL PROPERTY OWNERS.

1:26:21UM IT'S STRICTLY CONFIDENTIAL.

1:26:23SO BETWEEN MY OFFICE AND THE

1:26:25PROPERTY OWNER UNFORTUNATELY

1:26:26YOU KNOW UNDER STATE LAW NOT

1:26:28WELL ON UNFORTUNATELY I CAN'T

1:26:30SHARE THAT WITH YOU.

1:26:31UM, BECAUSE IT IS CONFIDENTIAL

1:26:33INFORMATION THEY ARE SHOWING TO

1:26:34US.

1:26:34YOU KNOW WHAT THEIR RENTS ARE,

1:26:35WHAT THEIR EXPENSES ARE.

1:26:38UM, FROM THERE WE COLLECT THAT

1:26:40INFORMATION AND DETERMINE WHAT

1:26:41THE MARKET TRENDS ARE.

1:26:42FROM THERE WE ALSO LOOK AT YOU

1:26:44KNOW, WHAT OTHER UM.

1:26:46LOOK AT OTHER INDUSTRY

1:26:47PUBLICATIONS UM, SUCH AS LIKE

1:26:50COSTAR OR BROKERAGE FIRMS TO

1:26:51DETERMINE YOU KNOW, WHAT TYPE

1:26:53OF TRENDS THERE ARE GOING ON IN

1:26:54THE COMMERCIAL MARKET AREA.

1:26:56SO IT'S A LOT OF SELF-REPORTED

1:26:57.

1:26:58UM, IT'S UH WE GET A GOOD

1:27:01SAMPLE SIZE FOR SELF-REPORTING

1:27:02OF IT.

1:27:03AND THEN WHEN THE SAMPLE SIZE

1:27:05IS TOO SMALL FOR ANY CATEGORY,

1:27:07UM, ARE YOU ABLE TO.

1:27:09USE THE PREVIOUS YEAR LIKE ARE

1:27:12YOU ABLE TO EXTEND OR EXPAND

1:27:15YOUR UM UH INSTEAD OF TWO YEARS

1:27:19?

1:27:19ARE YOU ABLE TO GO BACK JUST

1:27:21ONE YEAR.

1:27:22FOR THE FOR RESIDENTIAL SIDE

1:27:24OR.

1:27:24RESIDENTIAL SIDE?

1:27:25>> SO FOR THE RESIDENTIAL SIDE

1:27:26IF WE DON'T HAVE ENOUGH THAT'S

1:27:28A GREAT QUESTION ACTUALLY.

1:27:28AND THEN WHAT WHAT IS NOT WHAT

1:27:30WHAT'S A GOOD AMOUNT SAMPLE

1:27:32SIZE.

1:27:33SO THE THE SAMPLE SIZE UM UNDER

1:27:37REGULATORY GUIDELINES IS THAT

1:27:39WE HAVE TO USE A FULL CALENDAR

1:27:40YEAR PRIOR TO THE ASSESSMENT

1:27:42DATE.

1:27:43SO JANUARY 1ST 2025 WE CAN USE

1:27:45CALENDAR YEAR 24 SALES IF WE DO

1:27:47NOT HAVE ANY SALES UM WE ARE

1:27:50ALLOWED TO GO BACK ANOTHER

1:27:51YEAR.

1:27:52UM WE JUST HAVE TO BE

1:27:53CONSISTENT ACROSS ALL ASSET

1:27:55CLASSES.

1:27:56SO IF WE GO BACK IN CALENDAR

1:27:57YEAR 23 SALES WE NEED TO DO

1:27:59THAT FOR ALL OF OUR UH

1:28:00RESIDENTIAL LIKE CLASSES LIKE

1:28:02SINGLE FAMILIES, TWO FAMILIES,

1:28:04CONDOMINIUMS.

1:28:05GOT IT.

1:28:06AND THEN UM, IS THAT IS THAT

1:28:09DONE?

1:28:09IS THAT A PRACTICE THAT'S DONE

1:28:10OFTEN OR I'M JUST TRYING TO

1:28:12THINK OF UH, THE EXAMPLES THAT

1:28:15COUNCILOR CULPEPER GAVE.

1:28:16SO GOING BACK LIKE A YEAR OR

1:28:17TWO.

1:28:18RIGHT.

1:28:18>> UM IT DEPENDS ON WHAT OUR

1:28:20SAMPLE SIZES UM, WE TYPICALLY

1:28:22GO BACK A YEAR OR LIKE THE

1:28:25FIRST THE LAST SIX MONTHS

1:28:27OF YOU KNOW, THE PRIOR YEAR.

1:28:28SO A YEAR AND A HALF.

1:28:29OR TWO YEARS OKAY.

1:28:31AND THEN I GUESS MY LAST

1:28:33QUESTION IS GOING TO BE.

1:28:35DO WE.

1:28:36>> BREAK DOWN UM ASSESSMENT

1:28:39VALUE PER UNIT TO KIND OF GET

1:28:42AN IDEA OF IF LARGE BUILDINGS

1:28:46ARE ARE PAYING THE SAME PER

1:28:48UNIT AS UM OTHER LARGE

1:28:50BUILDINGS.

1:28:53.

1:28:54>> UH, SO FOR LIKE AN APARTMENT

1:28:56BUILDING OR SIMILAR TO LIKE A

1:28:57THREE FAMILY.

1:28:58RIGHT, RIGHT.

1:29:00SO UM UNLIKE A ON A TWO FAMILY

1:29:02FOR EXAMPLE, WE'RE VALUING IT

1:29:04BASED OFF OF LIKE A COMPARABLE

1:29:06MARKET APPROACH.

1:29:07SO USING COMPARABLE SALES ON

1:29:09THE APARTMENT THEN.

1:29:10YOU KNOW WE DO.

1:29:11WE DO BREAK IT DOWN BY LIKE YOU

1:29:13KNOW BEDROOM COUNT WHAT THE

1:29:14MIXTURE IS.

1:29:15SO A ONE BEDROOM WOULD BE MORE

1:29:17WORTH LESS OBVIOUSLY THAN A TWO

1:29:19BEDROOM FOR EXAMPLE.

1:29:20GOT IT.

1:29:21>> AND COULD YOU WOULD YOU BE.

1:29:23>> ABLE TO PROVIDE THAT

1:29:25BREAKDOWN FOR ME TO SEE WHAT

1:29:27THE PER UNIT ASSESSMENT VALUE

1:29:29WOULD BE VERSUS YOU KNOW, MAYBE

1:29:31A THREE FAMILY VERSUS YOU KNOW

1:29:34A LARGER APARTMENT BUILDING.

1:29:35TYPE SO ON THE THREE FAMILY AND

1:29:37THAT WOULD BE A LITTLE

1:29:38DIFFICULT BECAUSE WE DON'T

1:29:40CAPTURE WE DO CAPTURE LIKE

1:29:41BEDROOM COUNTS.

1:29:42SO WE COULD GIVE YOU THAT UM

1:29:45AND WE COULD CAP WE COULD WE

1:29:46COULD PROBABLY CAPTURE THE

1:29:48BEDROOM COUNTS FOR THE

1:29:48APARTMENTS AS WELL.

1:29:49SO YEAH I THINK THAT IS

1:29:50POSSIBLE.

1:29:50OKAY SO YOU'LL BE.

1:29:51>> ABLE TO BREAK IT DOWN PART.

1:29:52PER BEDROOM.

1:29:54WE WOULD BREAK IT DOWN BY YOU

1:29:56KNOW NUMBER OF TWO BEDROOMS

1:29:57NUMBER ONE BEDROOMS ON THE

1:29:58APARTMENTS AND THE TOTAL NUMBER

1:29:59OF BEDROOMS ON THE MULTIFAMILY

1:30:01.

1:30:01>> ALL RIGHT THANK YOU.

1:30:04UM OKAY I HAVE A FEW QUESTIONS

1:30:07AND THEN.

1:30:08IF IF PEOPLE HAVE LIKE ONE MORE

1:30:10UH, FOLLOW UP FOR.

1:30:11COMMISSIONER ONE MORE WE'LL DO

1:30:13THAT.

1:30:13UM, SO UH, THE THE THE OUR

1:30:18HOMEOWNER EXEMPTION IT'S LIKE

1:30:20350,000.

1:30:21HOW DOES THAT RANK UH WITH

1:30:24OTHER CITIES?

1:30:26UM, SAY ANYTHING ABOUT THAT?

1:30:28YEP.

1:30:29>> I BELIEVE UM THERE WAS A

1:30:30RECENT REPORT DONE BY THE

1:30:32LINCOLN LET LINCOLN LINCOLN

1:30:35INSTITUTE OF LAND MEN LINCOLN

1:30:37INSTITUTE.

1:30:38UM OF LAND.

1:30:39>> POLICY.

1:30:39.

1:30:40>> LAND POLICY SORRY TONGUE

1:30:41TWISTER TODAY UM I BELIEVE THEY

1:30:43THEY DID A WHOLE 50 STATE AND

1:30:46METROPOLITAN REPORT ON THIS.

1:30:48UM I BELIEVE WE ARE ONE OF THE

1:30:49MOST PROGRESSIVE TAXES FOR

1:30:52RESIDENTIAL EXEMPTION IF THEY

1:30:53WERE IN THE TOP THREE UNDER THE

1:30:55REPORT.

1:30:55SO WE WE ARE THIS COUNCIL HAS

1:30:59DECIDED TO BE EXTREMELY

1:31:00GENEROUS WITH THE RESIDENTIAL

1:31:01EXEMPTION TO GIVE YOU KNOW,

1:31:03HOMEOWNERS A LOT OF.

1:31:04RELIEF AND THEN YOU KNOW WHO

1:31:06BENEFITS FROM THAT.

1:31:08THE RESIDENTIAL EXEMPTION.

1:31:09I MEAN DOES IT DOES THAT

1:31:11BENEFIT LIKE HOW DOES THAT WORK

1:31:12OUT ACROSS THE CITY?

1:31:14I MEAN IS IT A YOU KNOW,

1:31:15EVERYONE GETS THE SAME AMOUNT

1:31:16BUT BECAUSE IT'S THE SAME YEP.

1:31:18SO BECAUSE IT'S A PROGRESSIVE

1:31:19TAX UM LOWER END PROPERTIES

1:31:22WILL BE BENEFITED MORE THAN A

1:31:25MULTI-MILLION DOLLAR PROPERTY

1:31:25FOR EXAMPLE.

1:31:27SO.

1:31:29IT'S OKAY.

1:31:31DEFINITION OF A PROGRESSIVE TAX

1:31:32SO.

1:31:32>> I THINK SO.

1:31:33SO RON RACA WAS THE

1:31:34COMMISSIONER OF ASSESSING FOR

1:31:36500 YEARS AND 25 YEARS UH YOU

1:31:39KNOW.

1:31:39>> HE HE'S.

1:31:40BASICALLY I THINK HE'S SAYING

1:31:41THAT THERE IS SOME REGRESSIVE

1:31:43IN OUR ASSESSMENTS AND I THINK

1:31:45THE THE LIST THAT UH THAT

1:31:47COMMISSIONER CULPEPPER HAD IS

1:31:48IT JUST IT'S GOING TO HAPPEN

1:31:50BUT THEN IT'S THE TAX BILLS WE

1:31:52SHOULD BE CONCERNED WITH AND

1:31:54THAT WE TAKE THESE STEPS.

1:31:56SO IF YOU JUST LOOK AT THE

1:31:58ASSESSMENTS YOU WILL FIND

1:31:59REGULAR ACTIVITY.

1:32:00BUT IF YOU ADD IN EVERYTHING

1:32:02ELSE WE'RE DOING WE END UP IN A

1:32:03PROGRESSIVE UH SORT OF FOOTING.

1:32:07SO CAN YOU JUST IS THAT SO

1:32:08SHOULD WE ACCEPT LIKE EXPECT

1:32:12SOME REGULAR PASSIVITY AND JUST

1:32:13THE VALUATIONS OR THE

1:32:15ASSESSMENTS AND WE HAVE TO FIX

1:32:17IT EVERY.

1:32:17YEAR HOUSE YEAH SO IN OUR

1:32:20MODELS WE ALWAYS WE WE ALWAYS

1:32:21ARE TRYING TO OUR MODELS ARE

1:32:24NEVER PERFECT SO WE ARE ALWAYS

1:32:26TRYING TO CALIBRATE THEM TO

1:32:29MAKE THEM YOU KNOW AS ACCURATE

1:32:30AS POSSIBLE TO THE MARKET VALUE

1:32:32WE DO AS AS COUNCILOR CULPEPPER

1:32:34MENTIONED YOU KNOW WE HAVE

1:32:35OUTLIERS UM WHETHER THEY'RE

1:32:37REALLY HIGH OR REALLY LOW.

1:32:38AND SO UM THIS IS JUST THE

1:32:41VALUATION PORTION OF IT.

1:32:43YOU KNOW, THIS COUNCIL IS MORE

1:32:45CONCERNED ABOUT YOU KNOW THIS

1:32:46COUNCIL IS VERY CONCERNED ABOUT

1:32:48YOU KNOW, PROPERTY TAX BILLS AT

1:32:49THE END OF THE DAY.

1:32:50SO THAT'S WHY WE HAVE THIS

1:32:51RESIDENTIAL EXEMPTION PROGRAM

1:32:52AND OTHER PERSONAL EXEMPTION

1:32:53PROGRAMS THAT CAN UM HELP.

1:32:56OUT, YOU.

1:32:57>> KNOW, HOMEOWNERS WHO NEED

1:32:59THE HELP AND YOU KNOW SO WE'RE

1:33:02GOING TO BE VALUING UM LOW AND

1:33:04THE TAXPAYERS ON A LOW END

1:33:05PROPERTY THEY'LL BE PAYING LESS

1:33:07VERSUS A HIGH END PROPERTY IF

1:33:08THEY, YOU KNOW, CHOOSE TO APPLY

1:33:12AND GET ACCEPTED INTO ALL THESE

1:33:13EXEMPTION PROGRAMS.

1:33:14LIKE I JUST THE I'M EVERYONE

1:33:17CAN ASK A FOLLOW UP QUESTION IF

1:33:19THEY LIKE BUT I JUST MY MIND

1:33:21WHICH I'LL JUST GO FIRST IS

1:33:22JUST SO I MEAN WHY IS THERE

1:33:25THIS REGRESSIVE CITY WHERE

1:33:27WE'RE WE'RE GOING TO SEEM LIKE

1:33:30UH LIKE THE MORE THAT WE'RE

1:33:32MORE.

1:33:33OFF WE'RE UNDER ON THE HIGH

1:33:35VALUE PROPERTIES AND CLOSER TO

1:33:37THE SALE AMOUNT AND THE LOWER

1:33:41VALUE PROPERTIES OR EVEN.

1:33:43IT'S BECAUSE IT'S BECAUSE WE'RE

1:33:44LOOKING AT MARKET VALUE SALES

1:33:46AND THAT WE HAVE SALES THAT ARE

1:33:50YOU KNOW THEY DO FIT THE

1:33:51PATTERN BUT WE DO HAVE SALES

1:33:53FOR WHATEVER REASON ARE YOU

1:33:54KNOW BEYOND BEYOND WHAT OUR

1:33:57WHAT OUR MODEL CAN CALIBRATE

1:34:00OKAY.

1:34:01UH WHICH IS WHAT THE REGRESSIVE

1:34:02CITY IS.

1:34:03YEAH OKAY.

1:34:04UH SO JUST A FOLLOW UP

1:34:05QUESTION, UH, FOR ANYONE WHO

1:34:07WANTS ONE COUNCILOR CULPEPPER.

1:34:08THANK YOU, CHAIR, FOR PROMOTING

1:34:10ME TO COMMISSIONER.

1:34:11I'LL SAY COMMISSIONER.

1:34:12YOU SAID.

1:34:13>> OKAY.

1:34:14>> THAT'S OKAY.

1:34:14PRESIDENT.

1:34:15COUNCIL PRESIDENT CULPEPPER

1:34:16OKAY.

1:34:17I'M SURE PRESIDENT BRIGGS WOULD

1:34:20LOVE TO HEAR THAT AND SAY THIS

1:34:21BACK.

1:34:22BUT ON A MORE SERIOUS NOTE, UH,

1:34:25THE DATA UH, THAT PROMPTED THIS

1:34:27HEARING SHOW THE LOWER

1:34:29ASSESSMENT.

1:34:31UH, THE SALE PRICE RATIO AMONG

1:34:34MOST EXPENSIVE PROPERTIES.

1:34:36HOWEVER, IN YOUR PRESENTATION,

1:34:39UH, IT SHOWS THAT THE CITY'S

1:34:40ASSESSMENT RATIOS MEET THE

1:34:42STATE STANDARDS ACROSS

1:34:44RESIDENTIAL PROPERTY TYPES AND

1:34:46PRICE QUARTILES.

1:34:48HOW DO YOU RECONCILE THESE TWO

1:34:50FINDINGS AND WHAT EXPLAINS THE

1:34:51DIFFERENCE BETWEEN THE RESULTS.

1:34:53BECAUSE SO IN MY PRESENTATION

1:34:57WE'RE USING QUARTILES.

1:34:59SO THAT IS THE OVERALL YOU KNOW

1:35:01WE'RE LOOKING AT ALL THE

1:35:02QUALIFIED SALES IN THE AREA UM

1:35:05IN THE PRESENT IN YOU KNOW WE

1:35:06WILL HAVE HIGH END PROPERTIES

1:35:08THAT SELL BEYOND YOU KNOW IN MY

1:35:11PREVIOUS ONE OF THE OTHER

1:35:12SLIDES AGAIN WE HAD OUTLIERS IN

1:35:14THIS THAT'S TRYING TO FIT INTO

1:35:16THAT MODEL.

1:35:16SO WE'RE ALWAYS GOING TO HAVE

1:35:18OUTLIERS UM TO TRY TO

1:35:19COMBAT THAT WE MAKE SURE THAT

1:35:20WE HAVE ACCURATE DATA ON THE

1:35:22PROPERTY AND THAT'S WHY WE

1:35:23ALWAYS GO OUT IN THE FIELD AND

1:35:24TRY TO MAKE SURE THAT WE HAVE

1:35:25CORRECT DATA OR LOOKING AT

1:35:27OTHER SOURCES TO MAKE SURE THAT

1:35:28YOU KNOW.

1:35:29WE HAVE CORRECT PROPERTY

1:35:29ATTRIBUTES ON THERE TO MAKE

1:35:31SURE THAT WE HAVE AN ACCURATE

1:35:32MODEL.

1:35:33AND SO WHEN WHEN THEY GO OUT TO

1:35:37THE FIELD THEN.

1:35:40AND I THINK I HEARD YOU SAID

1:35:42YOU DIDN'T USE ZILLOW OR YOU

1:35:45DIDN'T USE ANY OF THE REAL

1:35:47ESTATE COMPANIES THERE.

1:35:49SO WE USE WE USE WHAT'S CALLED

1:35:50MULTIPLE LISTING SERVICE UM

1:35:52ALSO KNOWN AS MLS.

1:35:54UM I THINK THAT'S THE INDUSTRY

1:35:55TERM I FORGOT.

1:35:56I DON'T.

1:35:56>> THINK IT'S THE NAME OF THE

1:35:58COMPANY AS WELL.

1:35:59UM SO I BELIEVE ZILLOW USES

1:36:04MLS.

1:36:05I BELIEVE WHERE THEY GO HAND IN

1:36:06HAND AND WHAT.

1:36:07PORTION OF IT.

1:36:07BUT YOU KNOW IT'S VERY SIMILAR.

1:36:09IT IS STILL LIKE A LISTING SITE

1:36:11FOR ALL THE SALES OR PURCHASES.

1:36:14SO WE DO USE LIKE THAT BUT YOU

1:36:17KNOW ABOUT A THIRD OF OUR SALES

1:36:19IN THE CITY ARE NOT LISTED ON

1:36:21THESE MULTIPLE LISTING SERVICES

1:36:23ARE YOU KNOW SIMILAR TO LIKE

1:36:24ZILLOW FOR EXAMPLE.

1:36:27UM SO WE ALWAYS TRY TO RESEARCH

1:36:28TO SEE IF THESE ARE ARMS LAND

1:36:30TRANSACTIONS.

1:36:30>> AND SO THAT DATA THAT YOU

1:36:32GET FROM THE MLS, THAT DATA

1:36:34GOES INTO THE SYSTEM WITH YOUR

1:36:36OTHER DATA.

1:36:37NO WE DON'T USE MLS DATA I

1:36:39DON'T I BELIEVE SO WE USE IT AS

1:36:42A REFERENCE POINT.

1:36:43SO I BELIEVE THEY ACTUALLY USE

1:36:44OUR DATA POINTS UM.

1:36:45THE MULTIPLE LISTING SERVICE.

1:36:47YEAH I BELIEVE THAT IT GOES

1:36:50HAND IN HAND.

1:36:51I BELIEVE THAT WHEN A BROKER

1:36:52COMES IN I HAVE A TAKE A LOOK

1:36:53AT OUR ASSESSING WEBSITE AND

1:36:55YOU KNOW THEY COMPARE APPLES TO

1:36:57APPLES.

1:36:57MAKE SURE WE HAVE THE YOU KNOW

1:36:59IF THEY'RE LISTING A THREE

1:37:01BEDROOM THEY'RE GOING TO DOUBLE

1:37:02CHECK TO SEE ON ASSESSING IF WE

1:37:03HAVE A THREE BEDROOM UM SIMILAR

1:37:05TO THAT UM BUT OUR SALES COME

1:37:08FROM THE SUFFOLK COUNTY

1:37:09REGISTER TO DEEDS.

1:37:11AFTER THE SALE.

1:37:13YES.

1:37:14>> YEAH OKAY OKAY.

1:37:16THANK YOU.

1:37:19YEAH.

1:37:19>> PLEASE.

1:37:20IF YOU HAVE OTHER QUESTIONS

1:37:21SUBMIT THEM THROUGH THROUGH

1:37:22ME OR THE CHAIR AND GET THOSE

1:37:24ANSWERED.

1:37:25UH COUNCILOR FITZGERALD THANK

1:37:26YOU.

1:37:26CHAIR.

1:37:27UM.

1:37:28>> SO YOU KNOW, ARE WE WE'RE

1:37:31LOOKING TO.

1:37:32>> SET THE ASSESSED VALUE RIGHT

1:37:34.

1:37:35TO MATCH THE.

1:37:35MARKET VALUE.

1:37:36WOULD YOU.

1:37:37>> THINK THAT'S FAIR OR THE

1:37:38MARKET VALUE IS IT IS IT YOU

1:37:40KNOW I KNOW WE'RE NOT

1:37:41NECESSARILY THERE ANY INTEGERS

1:37:42HEAVILY WEIGHTED MORE THAN

1:37:43OTHERS, BUT IT SEEMS THAT THE

1:37:46MARKET VALUE CERTAINLY PLAYS A

1:37:47LARGE ROLE IN THE ASSESSMENT.

1:37:48YEP.

1:37:49>> SO WHEN WHEN WE'RE TALKING

1:37:52ABOUT MARKET VALUE FOR ASSESSED

1:37:53VALUE WE'RE TALKING ABOUT.

1:37:55A PERIOD OF TIME.

1:37:57SO UM A FULL CALENDAR YEAR

1:37:59BEFORE SO WE CANNOT LOOK AT UM

1:38:03A SALE THAT TRANSPIRED

1:38:05YESTERDAY INTO OUR ANALYSIS.

1:38:07SO WHAT DO YOU MEAN MARKET

1:38:08VALUE?

1:38:08YOU KNOW TODAY'S MARKET VALUE

1:38:09WE CANNOT USE WE HAVE TO USE

1:38:11LIKE A FULL CALENDAR YEAR

1:38:12SAMPLE SIZE SO.

1:38:14I APPRECIATE THAT BUT IT JUST

1:38:16IT SORT OF DAWNED ON ME AS IF

1:38:17OTHERS WERE ASKING QUESTIONS.

1:38:19WHAT I'M WORRIED ABOUT IS A LOT

1:38:20OF THE TIME THE MARKET VALUE IS

1:38:23BASED.

1:38:24ON SPECULATIVE DEVELOPING

1:38:26DEVELOPMENT UH.

1:38:28>> MARKETABILITY.

1:38:28LIKE I KNOW THERE'S A.

1:38:29HOUSE FIVE.

1:38:30HOUSES AWAY FROM ME.

1:38:31IT'S GOT ONE BATHROOM UH, THE

1:38:34SHOWERS ON ONE FLOOR AND THE

1:38:35TOILETS ON THE OTHER AND THAT'S

1:38:36THE ONE BATHROOM.

1:38:37RIGHT.

1:38:38BUT THEY SOLD TO BUILD.

1:38:40FIVE TOWNHOUSES.

1:38:42SO IT SOLD FOR.

1:38:45$1.5 MILLION.

1:38:46>> RIGHT.

1:38:46SO THAT IS.

1:38:47NOW THAT.

1:38:47THAT WOULD BE THE.

1:38:48MARKET IF IF THAT HOUSE.

1:38:50SELLS FOR.

1:38:511.5 BASED ON.

1:38:52WHAT COULD BE BUILT.

1:38:53THERE THEN.

1:38:54YOU KNOW NEXT YEAR THAT BECOMES

1:38:56.

1:38:57FOR MY AROUND MY HOME SORT

1:38:59OF THE MARKET RATE VARIABLE IF

1:39:02I'M RIGHT.

1:39:02FOR FOR THE ASSESSED VALUES YES

1:39:04OR NO IF THERE ARE OTHER $1.5

1:39:07MILLION SALES FOR LIKE A SINGLE

1:39:09FAMILY OR SORRY TWO FOR.

1:39:11I THINK YOU SAID TWO FAMILIES.

1:39:12SINGLE FAMILY SORRY SINGLE

1:39:13FAMILY.

1:39:14SO IF IT WAS IF WE HAD.

1:39:16MULTIPLE $1.5 MILLION SALES IN

1:39:18YOUR NEIGHBORHOOD THEN LIKELY

1:39:20YOU KNOW OUR OUR MODEL WOULD

1:39:23TRY TO.

1:39:24ACCOUNT TO GET TO THAT 1.5

1:39:25MILLION IF THERE WAS ONLY 11.

1:39:28$5 MILLION SALE AND LET'S SAY

1:39:30ALL THE OTHER SALES IN THE AREA

1:39:32LIKE WE HAD TEN OF THEM FOR

1:39:34900,000 MOST LIKELY WE'RE GOING

1:39:37TO THE MODEL IS GOING TO

1:39:38DEVIATE TOWARDS THAT $900,000

1:39:39SALE.

1:39:40BUT THEN LET ME ASK AFTER THESE

1:39:41FIVE TOWNHOUSES ARE.

1:39:42BUILT AND SOLD.

1:39:43FOR $1 MILLION APIECE THAT WILL

1:39:45THEN BE UH RIGHT.

1:39:48>> I MEAN IT STARTS THAT YOU

1:39:49START TO CREATE THAT.

1:39:51SO WHEN YOU WHEN YOU CHANGE THE

1:39:53WHEN YOU CHANGE THE USE ON A

1:39:55PROPERTY.

1:39:55SO IN THIS EXAMPLE LIKE YOU

1:39:57HAVE A SINGLE FAMILY TURNING

1:39:58INTO TOWNHOUSES WE'RE NO LONGER

1:40:00.

1:40:00THAT TOWNHOUSE PORTION

1:40:03VALUATION IS NO LONGER

1:40:04CALCULATED INTO THE SINGLE

1:40:05FAMILY.

1:40:05MODEL BECAUSE WE'RE NOT WE'RE

1:40:07NOT NO LONGER DOING APPLES TO

1:40:09APPLES.

1:40:09WE'RE DOING, YOU KNOW.

1:40:10APPLES AND BANANAS.

1:40:12OKAY, I APPRECIATE THAT BECAUSE

1:40:13THAT IS JUST SOMETHING I SEE

1:40:14HAPPENING A LOT AND UM, I WORRY

1:40:17ABOUT THE.

1:40:17SPECULATIVE DEVELOPMENT RATE

1:40:19VERSUS THE UH THE ASSESSED

1:40:20VALUE.

1:40:21THANK YOU.

1:40:21CHAIR OKAY.

1:40:22>> THANK YOU.

1:40:22THIS IS THE MOST FRUITS

1:40:23MENTIONED IN THE HEARING.

1:40:25UH THANK YOU COUNCILOR RELATIVE

1:40:27ANY.

1:40:27SO ONE LAST QUESTION.

1:40:28UM, GOING BACK TO THE LARGE

1:40:32BUILDINGS.

1:40:34IF WE ARE.

1:40:36THE LARGE BUILDING IS STILL

1:40:38UNDER THE RESIDENTIAL PROPERTY

1:40:40AT THE END OF THE SAME TYPE

1:40:42OF TAX RATE AS ALL RESIDENTIAL

1:40:44PROPERTY.

1:40:45BUT WE'RE USING A DIFFERENT

1:40:46EVALUATION.

1:40:47RIGHT.

1:40:47UM, HOW ARE WE MAKING SURE.

1:40:49THAT.

1:40:50>> UM, THERE'S.

1:40:52COMPARABLE ACCURACY IN LARGE

1:40:54APARTMENT BUILDINGS VERSUS UM,

1:40:57OWNER OCCUPIED RESIDENTIAL

1:41:00PROPERTY LIKE THAT?

1:41:01THAT RATIO IS SOMEWHAT THE

1:41:04SAME.

1:41:07SO A LARGE APARTMENT BUILDING

1:41:09VERSUS LIKE AN OWNER OCCUPIED

1:41:11LIKE SINGLE FAMILY RIGHT.

1:41:13OR EVEN AS A OWNER OCCUPIED TWO

1:41:16FAMILY.

1:41:16YEAH.

1:41:17YEP.

1:41:17>> WHATEVER IT IS.

1:41:18RIGHT.

1:41:18SO THE THE ACCURACY BETWEEN.

1:41:20THOSE RIGHT.

1:41:21SO WHEN WE WHEN WE DO OUR WHEN

1:41:23WE DO OUR STATISTICAL ANALYSIS

1:41:24WE'RE NOT COMPARING THAT TO

1:41:26FAMILY TO THE APARTMENT

1:41:27BUILDING WE'RE COMPARING IT TO

1:41:29OTHER TWO FAMILIES LIKE.

1:41:30>> NO NO I'M AWARE OF THAT BUT

1:41:31I'M JUST SAYING LIKE IN TERMS

1:41:33OF THE UM THE ASSESSED VALUE

1:41:37LIKE I GUESS I'M GOING BACK TO

1:41:39LIKE THE PER UNIT HOW UM OR HOW

1:41:42YOU PUT LIKE MAYBE THE BED

1:41:44COUNT BUT HOW WE'RE UM ENSURING

1:41:46THAT WE'RE GETTING THE THE SAME

1:41:49AMOUNT OF VALUE OUT OF THESE

1:41:51LARGE APARTMENT BUILDINGS AS

1:41:52WE'RE GETTING FROM YOU KNOW,

1:41:55THE THE VALUE THAT'S

1:41:57APPRECIATING IN THESE SMALLER

1:41:59UNITS.

1:41:59YEP.

1:42:00>> SO I WOULD SAY THAT THERE ON

1:42:03THE LARGER APARTMENT BUILDINGS

1:42:06WE VALUE THEM DIFFERENTLY

1:42:07BECAUSE YOU KNOW, MOST OF THEM

1:42:09IF NOT ALL OF OUR APARTMENT

1:42:10BUILDINGS MAYBE HAVE A COUPLE A

1:42:12HANDFUL ARE, YOU KNOW,

1:42:14INVESTMENT PROPERTIES.

1:42:15RIGHT.

1:42:15UM WE MIGHT HAVE A COUPLE THAT

1:42:16ARE OWNER OCCUPIED.

1:42:18UM, BUT FOR THE MOST PART MOST

1:42:20APARTMENT BUILDINGS ARE, YOU

1:42:21KNOW, INVESTMENTS.

1:42:23RIGHT, RIGHT.

1:42:23YOU KNOW, AND I GO BACK TO LIKE

1:42:25THE WHOLE PROGRESSIVE TAX.

1:42:25YES.

1:42:26RIGHT.

1:42:27LIKE WHEN WE'RE LOOKING AT IT

1:42:29BEING THAT RIGHT THEN IT SHOULD

1:42:32BE UM YOU KNOW I GUESS SOME

1:42:35TYPE OF I GUESS IT'S LIKE MORE

1:42:37COMPARE LIKE IT SHOULD BE

1:42:39CLOSER AND IT SHOULDN'T BE A

1:42:41VAST DISPARITY BETWEEN YOU KNOW

1:42:45,THE TWO IF IT'S A IF IT'S

1:42:46REALLY CONSIDERED LIKE A

1:42:47PROGRESSIVE TAX LIKE THE INCOME

1:42:49THE INCOME PROPERTY VERSUS THE

1:42:51OWNER OCCUPIED ONE.

1:42:54THE A DISPARITY.

1:42:57BETWEEN UM I GUESS LIKE A PER

1:42:59UNIT COUNT OR UM HOW IT'S BEING

1:43:03ASSESSED UM PER BEDROOM.

1:43:06.

1:43:07>> SO ON THE ON THE APARTMENT

1:43:08SIDE WE'RE BASICALLY LOOKING AT

1:43:10WHAT THE RENTAL INCOME IS UM ON

1:43:12THE TWO FAMILY AND.

1:43:14>> YOU KNOW.

1:43:15WE'RE WE'RE BASICALLY LOOKING

1:43:17AT WHAT THE MARKET IS SELLING

1:43:18FOR FOR A TWO FAMILY AND SO WE

1:43:21WOULD DO THAT FOR OUR APARTMENT

1:43:22BUILDINGS IF WE HAD ENOUGH

1:43:23SALES DATA TO SHOW LIKE YOU

1:43:24KNOW, IF IF APARTMENTS ARE

1:43:26BEING SOLD YOU KNOW EVERY DAY

1:43:27THEN WE WOULD USE THAT SALES

1:43:29APPROACH FOR.

1:43:30APARTMENT BUILDINGS RIGHT?

1:43:31NO NOT NOT NO I GET THAT BUT I

1:43:33GUESS LIKE ARE WE TRYING TO UM

1:43:37RIGHT RIGHT.

1:43:39UM THE ASSESSMENT VALUE UM

1:43:42SEEING THAT MAYBE LIKE IN YOUR

1:43:44ANALYSIS THAT LARGE APARTMENT

1:43:46BUILDINGS ARE NOT APPRECIATING

1:43:48AS FAST AS UM, YOU KNOW, CONDOS

1:43:52OR TWO FAMILIES AT THREE FAMILY

1:43:53HOMES.

1:43:54RIGHT?

1:43:55SO YEP.

1:43:56SORRY, BUT THE RENTS ARE

1:43:58CONSTANTLY GOING UP.

1:43:59YEP.

1:43:59>> SO WHEN WE WHEN WE SEE RENTS

1:44:01ARE INCREASING WE WILL MAKE

1:44:02THOSE MARKET ADJUSTMENTS OKAY

1:44:04FOR COMMERCIAL FOR COMMERCIAL

1:44:06APARTMENT BUILDINGS.

1:44:07ALL RIGHT.

1:44:08UM I GUESS I I'LL WAIT FOR YOUR

1:44:11DATA ANALYSIS ON PRO BEDROOMS

1:44:13TO SEE, YOU KNOW, IF THERE'S

1:44:15ANY DISPARITIES BETWEEN THE

1:44:16TWO.

1:44:16YEP.

1:44:16ALL RIGHT.

1:44:17OKAY OKAY.

1:44:18WELL THANK YOU.

1:44:19THANK YOU VERY MUCH,

1:44:20COMMISSIONER WONG.

1:44:20UH, YOU'RE, UH, RELIEVED, UH,

1:44:24TO BE DONE.

1:44:25UM, UH, SO WE'RE GOING TO CALL

1:44:27OUR SECOND PANEL.

1:44:29UM, IT'S, UH CHRIS.

1:44:31RIGHT.

1:44:31SORRY.

1:44:32YOU KNOW, UH, MY NAME IS AND

1:44:33UH, YEAH.

1:44:34UH, CHRIS LEHMAN AND AND UH,

1:44:37RUCHI SINGH WHO'S HERE REMOTELY

1:44:40UH, I SO IT JUST WE WE DO HAVE

1:44:43UH YOU KNOW, SOME PEOPLE HAVE

1:44:45BEEN WAITING AROUND AND

1:44:47INCLUDING FORMER CITY

1:44:48COUNCILOR FRANK BAKER.

1:44:49UH, I IF YOU WANT TO GO NOW, UH

1:44:53,YOU KNOW, FOR PUBLIC

1:44:54TESTIMONY.

1:44:59SO WE'LL JUST HAVE UH SO IT'S

1:45:01IT'S IT'S TWO MINUTES FOR

1:45:02PUBLIC TESTIMONY.

1:45:04UH, I WILL YEAH.

1:45:05SO, UH, THIS THE MICROPHONE

1:45:07OVER THERE?

1:45:07YEAH.

1:45:08AND QUESTIONS TO DIRECT TO THE

1:45:11ACTING COMMISSIONER.

1:45:12IS THAT POSSIBLE?

1:45:13UH, NO.

1:45:15UH, BUT YOU CAN DIRECT THE.

1:45:16QUESTION TO US AND WE.

1:45:17CAN WE CAN WE CAN GET THEM

1:45:18ANSWERED.

1:45:20UH UM OKAY, SO IT'S UH TWO

1:45:23MINUTES UH, YOU'LL SEE THE

1:45:24CLOCK BEHIND ME WHENEVER YOU'RE

1:45:26READY AND JUST TELL US, UH,

1:45:27YOUR NAME WHERE YOU LIVE AND

1:45:30THEN, UH, LET'S HEAR WHAT YOU

1:45:31HAVE TO SAY.

1:45:32SURE.

1:45:33>> MY NAME IS MARTA CARNEY.

1:45:35I LIVE IN SAVIN HILL.

1:45:36BORN AND RAISED.

1:45:36YEAH.

1:45:37>> I HAVEN'T STARTED THE CLOCK,

1:45:38BUT YOU JUST GET CLOSER.

1:45:39SORRY.

1:45:39MARTA CARNEY SEVEN HILL BORN

1:45:41AND RAISED A NEIGHBOR OF FRANK

1:45:42BAKER.

1:45:43AND THIS, UH THIS IS LAST

1:45:45MINUTE SO I'M REALLY NOT

1:45:46PREPARED.

1:45:46BUT, UM, COUNCILOR LAUREL HAS

1:45:49YOU SPOKE JUST NOW?

1:45:50I REALLY WANTED TO ADDRESS WE

1:45:51HAVE PROPERTIES, YOU KNOW,

1:45:53BIGGER APARTMENT BUILDINGS THAT

1:45:55ARE WAY UNDERVALUED.

1:45:56THIS IS AT $800,000 AND THIS IS

1:45:58KIND OF WHAT YOU WERE ALLUDING

1:45:59TO, I THINK YOU KNOW, AND THEN

1:46:01ALSO I WOULD LIKE TO PROPOSE A

1:46:02THIRD CATEGORY.

1:46:04SO WE HAVE A RESIDENTIAL WE

1:46:05HAVE A COMMERCIAL I THINK

1:46:06THERE'S ROOM FOR A THIRD FOR

1:46:08THE TRIPLE DECKERS FOR THE 4 TO

1:46:116 UNITS THEY'RE ALL OVER

1:46:13BOSTON.

1:46:13SO A THIRD CATEGORY I KNOW

1:46:15THERE'S A LOT OF INVESTORS THAT

1:46:16WOULD HURT THEM A LITTLE BIT

1:46:17BUT MAYBE $2 LIKE JUST A THIRD

1:46:20CATEGORY.

1:46:21UM THE OTHER THING IS SANTA

1:46:23BARBARA HAS A TAX UM THING

1:46:26WHERE YOUR TAXES NEVER GO UP

1:46:27UNTIL YOU SELL THE HOME.

1:46:29THAT WOULD BE A BIG LEGISLATIVE

1:46:30CHANGE OF LAW.

1:46:31I DON'T EVEN KNOW BUT THAT'S A

1:46:33SUGGESTION.

1:46:33UM, BUT THE THREE CATEGORIES

1:46:35AND ALSO I WOULD JUST REALLY

1:46:37CHALLENGE THE ASSESSING

1:46:38DEPARTMENT TO LOOK AT THE DATA

1:46:40THEY NEED TO SHARPEN THEIR

1:46:41PENCILS.

1:46:41THEY NEED TO IF THEY'RE USING

1:46:43ALL THIS DATA THEY NEED TO HAVE

1:46:44SOME SUBJECTIVITY.

1:46:45I DON'T KNOW IF THEY LIVE IN

1:46:47BOSTON I MEAN MY DEALINGS WITH

1:46:49THEM I JUST FEEL LIKE THE DATA

1:46:51THE DATA REALLY NEEDS TO BE

1:46:53ADDRESSED.

1:46:54UM I THINK THAT'S REALLY ALL I

1:46:57HAVE.

1:46:58UM, YOU KNOW THE MLS, THE

1:47:00ZILLOW'S IT REALLY IS UNFAIR AS

1:47:02COUNCILOR FLYNN SAID, YOU KNOW,

1:47:03SOMEBODY BUYS THE HOUSE FOR $1

1:47:05MILLION AND THE ELDERLY FAMILY

1:47:07A LIVING BESIDE THEM AND IT

1:47:09JUST GOES FLYING UP THEIR

1:47:10TAXES.

1:47:11SO AND THEN CHECK ON THE

1:47:12RESIDENTIAL EXEMPTIONS IS A LOT

1:47:14OF PEOPLE THAT ARE THAT ARE

1:47:15DEAD THAT ARE GETTING THE

1:47:16RESIDENTIAL EXEMPTIONS IN HOMES

1:47:18OKAY.

1:47:19THEY'RE NOT FOLLOWING UP TO

1:47:20FIND OUT AND AGAIN JUST DATA UM

1:47:26IN THE THIRD CATEGORY I THINK

1:47:27WE NEED A THIRD CATEGORY AND I

1:47:29THINK EVEN IF IT'S $2 PER

1:47:31THOUSAND ON THOSE APARTMENT

1:47:33BUILDINGS THREES FOURS AND

1:47:35SIXES THAT WOULD BE HELPFUL.

1:47:36THANK YOU.

1:47:37OKAY.

1:47:37>> THANK YOU VERY MUCH.

1:47:38YOU HAVE A WONDERFUL DISTRICT

1:47:39COUNSELOR AND JOHN FITZGERALD.

1:47:41YOU CAN REACH OUT TO HIM AND

1:47:42REACH OUT TO ME.

1:47:43I CAN ALSO GIVE YOU MY CARD.

1:47:46UM UH I KNOW UH, FRANK YOU

1:47:49SIGNED UP.

1:47:49YES.

1:47:51I CAN SEE.

1:47:52>> OKAY.

1:47:53>> UH.

1:47:56ON THE DISTRICT

1:47:57COUNCIL TOMORROW.

1:47:58I ALWAYS OFFER A SEAT.

1:47:59OKAY.

1:48:00>> IT'S AND IT'S NEW ONES.

1:48:01FROM HERE.

1:48:01>> ON IT.

1:48:02>> OKAY.

1:48:03SO THANK YOU.

1:48:04FRANK BAKER.

1:48:05>> FORMER DISTRICT.

1:48:05CITY COUNCILOR, DORCHESTER

1:48:06RESIDENT.

1:48:07SOMEONE THAT HAS MY.

1:48:08UH, MY ASSESSMENTS GOING UP BY.

1:48:10$200,000 FOR THE LAST THREE

1:48:12YEARS BACK IN THE LAST.

1:48:14DOWNTURN IN.

1:48:15>> THE ECONOMY WHICH WE'RE IN

1:48:16NOW IS A DOWNTURN IN THE

1:48:17ECONOMY.

1:48:18I COULDN'T EVEN GET IT A I

1:48:19COULDN'T EVEN GET A ASSESSOR TO

1:48:21COME OUT NOT AN ASSESSOR BY THE

1:48:23BANK BANK ASSESSOR.

1:48:25>> TO COME OUT.

1:48:25AND AND GET ME AT $500,000 BACK

1:48:28IN NO WAY.

1:48:29UM I THINK.

1:48:30>> WHAT WE'RE.

1:48:31>> DOING.

1:48:31NOW AND YOU YOU MADE A GOOD

1:48:32POINT.

1:48:32TALKING ABOUT HOW.

1:48:33>> WE WERE RACIST BACK IN THE

1:48:34IN IN THE IN THE DAY DURING UM.

1:48:37REDLINING AND THINGS LIKE THAT

1:48:39AND IT'S A PROGRESSIVE TAX SO

1:48:40IT'S SUPPOSED TO BECAUSE IT'S

1:48:41PROGRESSIVE SUPPOSED TO BE

1:48:42BETTER SUPPOSED TO TAKE CARE

1:48:44OF LOWER.

1:48:44INCOME UM COMMUNITIES OF COLOR

1:48:48IT'S PROGRESSIVE BUT IT'S NOT

1:48:50DOING THAT LIKE WE'VE HEARD

1:48:51FROM.

1:48:52COUNCILOR CULPEPER.

1:48:53WE HAVE THE WE HAVE THE BACK

1:48:55BAY, BEACON HILL IT REALLY PAYS

1:48:57TO BE RICH IN BOSTON AND THE

1:48:58PEOPLE THAT ARE MIDDLE CLASS.

1:48:59MYSELF INCLUDED.

1:49:01MY ASSESSMENT IS.

1:49:02EXACTLY ABOUT WHAT I COULD

1:49:04POTENTIALLY GET IF I WERE TO.

1:49:06>> PUT MY MY HOUSE ON THE

1:49:08MARKET.

1:49:08AND SELL AT 1.2 MILLION.

1:49:11>> IS WHAT I'M ASSESSED AT.

1:49:12I COULD PROBABLY GET.

1:49:13THAT IF IF.

1:49:13ALL THE STARS ALIGNED.

1:49:15AT THAT POINT THAT DOESN'T

1:49:16TAKE.

1:49:16INTO ACCOUNT WHAT.

1:49:18>> I WOULD NEED TO.

1:49:18PAY IN.

1:49:19>> TAXES, WHAT I WOULD NEED TO

1:49:20PAY A BROKER, WHAT I WOULD NEED

1:49:21TO PAY THE CITY.

1:49:22SO WE'RE ACTUALLY GETTING

1:49:23TAXED.

1:49:24ON MONEY WE WILL.

1:49:25NEVER SEE.

1:49:26IT DOESN'T SEEM LIKE IT'S

1:49:27PROGRESSIVE TO ME.

1:49:29UM BUT.

1:49:30>> YET YOU.

1:49:30>> LOOK AROUND THE CITY THERE'S

1:49:31NOT A SINGLE VEHICLE IN THE

1:49:33CITY THAT ISN'T BRAND NEW.

1:49:34THERE ISN'T A SINGLE I.

1:49:36>> MEAN I LOOK AT THE.

1:49:38UM THE SALARIES IN THE CITY NOW

1:49:41EVERYONE SEEMS TO BE MAKING

1:49:42QUITE A LOT OF MONEY.

1:49:43I'M I'M A 37 YEAR CITY WORKER.

1:49:46VERY FEW PEOPLE BACK IN THE DAY

1:49:48WE'RE.

1:49:49MAKING OVER 100,000.

1:49:49WE'RE NOT TALKING ABOUT THAT.

1:49:51>> BUT WHAT I THINK WE'RE.

1:49:52LOOKING AT.

1:49:53>> IS WE'RE TRYING TO CATCH UP

1:49:54WITH BUDGETS THAT ARE OUT

1:49:55OF CONTROL.

1:49:56AND IT'S BEING LEVIED ON THE

1:49:59BACKS OF THE MIDDLE CLASS

1:50:00PEOPLE.

1:50:01>> THAT ARE HERE.

1:50:02WE TALK ABOUT WE TALK ABOUT

1:50:05AFFORDABILITY AND HOW WE NEED

1:50:06TO KEEP PRICES DOWN.

1:50:08THE ONE THING THAT'S IN YOUR

1:50:10CONTROL THE CITY COUNCIL AND

1:50:11THE MAYOR IS THE TAXES.

1:50:13THEY'VE TOTALLY GONE OUT

1:50:14OF CONTROL.

1:50:14THE BUDGET'S TOTALLY.

1:50:16OUT OF CONTROL AND BECAUSE MY

1:50:18TAXES HAVE GONE UP THE WAY

1:50:19THEY'VE THEY'VE GONE UP MY

1:50:21MORTGAGE HAS GONE.

1:50:22>> UP.

1:50:22BY $300.

1:50:23>> A YEAR AND MY MY INSURANCE

1:50:26HAS.

1:50:27TRIPLED WENT FROM 1100 A YEAR

1:50:29TO.

1:50:30$3,300 A YEAR.

1:50:30THAT'S SOMETHING THAT WE'RE NOT

1:50:32TAKEN INTO ACCOUNT WHEN YOUR

1:50:33ASSESSMENTS GO UP.

1:50:34YOUR INSURANCE.

1:50:35ALSO GOES UP.

1:50:36>> SO WE'RE ADDING.

1:50:37TO THE UNAFFORDABILITY.

1:50:39WHERE I'M COUNTING MYSELF ON

1:50:41THAT.

1:50:41WE'RE ALSO BECAUSE I USED TO

1:50:42SIT ON THIS BODY.

1:50:43WE ARE.

1:50:44ADDING TO THE UNAFFORDABILITY

1:50:47BY THE DECISIONS WE ARE MAKING

1:50:50IN THIS CHAMBER AND THE CITY

1:50:54COUNCIL DOES NOT SET THE RATE

1:50:56MY MAN HERE UM THAT THE.

1:50:58ACTING COMMISSIONER HAS SAID

1:50:59THAT YOU GUYS SET THE RATE YOU

1:51:01GUYS DON'T SET THE RATE.

1:51:02THE RATE IS THE RATE.

1:51:03>> IS SET ACROSS THE HALL AND

1:51:04THIS PARTY VOTES ON IT'S AN UP

1:51:06OR DOWN YOU HAVE NO SAY ON IT.

1:51:08IT'S SET ACROSS THE HALL.

1:51:09SO THANK YOU FOR YOUR TIME.

1:51:11OKAY.

1:51:11>> THANK YOU.

1:51:11UH.

1:51:13COUNCILOR BAKER UM, OKAY.

1:51:15UH, I THINK THAT'S.

1:51:18UM UM, ONE PERSON WANTS.

1:51:26OKAY.

1:51:27UH.

1:51:29>> SORRY.

1:51:29>> JUST ONE PERSON ONLINE WE

1:51:32GOT WHO'S, UH, PREPARED TO

1:51:35TESTIFY.

1:52:00MAYBE NOT.

1:52:03OKAY.

1:52:03>> I'M HERE.

1:52:04>> YOU CAN HEAR ME.

1:52:04I'M HERE.

1:52:05OKAY, GREAT.

1:52:06UH, SO YOU HAVE TWO MINUTES.

1:52:08UH, JUST WHENEVER YOU'RE READY.

1:52:10THANK YOU FOR YOUR TIME.

1:52:12GOOD AFTERNOON.

1:52:12CHAIR AND MEMBERS OF THE

1:52:14COUNCIL.

1:52:15MY NAME IS MELISSA GUZMAN.

1:52:16I'M A LIFELONG BOSTON RESIDENT

1:52:18OF THE CITY OF BOSTON.

1:52:19I'M A HOMEOWNER AND PREVIOUSLY

1:52:22I WORK IN THE CITY OF BOSTON

1:52:23ASSESSING DEPARTMENT FROM

1:52:25APPROXIMATELY OCTOBER OF 2018

1:52:28THROUGH FEBRUARY 2019.

1:52:31I'M HERE AS BOTH A FORMER

1:52:32EMPLOYEE WITH THE EXPOSURE TO

1:52:34ASSESSMENT AND ABATEMENT

1:52:37OPERATIONS AND A BOSTON

1:52:38TAXPAYER WHO BELIEVES RESIDENTS

1:52:40SHOULD BE ABLE TO TRUST THAT

1:52:41THESE PROCESSES ARE FAIR,

1:52:44CONSISTENT AND TRANSPARENT.

1:52:45DURING MY TIME IN THE ASSESSING

1:52:48DEPARTMENT, I OBSERVED

1:52:50SITUATIONS THAT CAUSED ME TO

1:52:51QUESTION WHETHER TAXPAYERS WERE

1:52:53ALWAYS RECEIVING THE SAME LEVEL

1:52:56OF REVIEW.

1:52:56I RECALL CIRCUMSTANCES IN WHICH

1:53:00EMPLOYEES WERE DISCOURAGED FROM

1:53:02FULLY PURSUING OR APPROVING

1:53:04ABATEMENTS, EVEN WHEN TAX

1:53:05PAYERS RAISE LEGITIMATE

1:53:08QUESTIONS ABOUT THEIR

1:53:09ASSESSMENTS.

1:53:10I ALSO OBSERVED INCONSISTENCIES

1:53:13IN THE REVIEW PROCESS FOR

1:53:15MATTERS INVOLVING ATTORNEYS OR

1:53:18REPRESENTATION APPEARED TO

1:53:19RECEIVE ADDITIONAL ATTENTION OR

1:53:22ADJUSTMENTS THAT DID NOT APPEAR

1:53:24TO BE AVAILABLE IN THE SAME WAY

1:53:26TO EVERY TAXPAYER.

1:53:27I WAS ALSO CONCERNED THAT SOME

1:53:30ASSESSMENTS APPEAR TO RELY

1:53:32HEAVILY ON BROAD NEIGHBORHOOD

1:53:33TREATMENT RATHER THAN

1:53:35INDIVIDUALIZED REVIEW OF A

1:53:36PARTICULAR PROPERTY.

1:53:38I RAISED THESE CONCERNS

1:53:40INTERNALLY ABOUT DEPARTMENTAL

1:53:42PRACTICES AND EMPLOYEE

1:53:43TREATMENT.

1:53:44I DID NOT FEEL THOSE CONCERNS

1:53:45WERE ADEQUATELY ADDRESSED AND I

1:53:47DID HAVE CONCERNS ABOUT HOW

1:53:50CONFIDENTIALITY WAS HANDLED.

1:53:51I'M NOT HERE TO SPECULATE ABOUT

1:53:53ANYONE'S MOTIVES.

1:53:54I AM SHARING WHAT I PERSONALLY

1:53:56OBSERVED AND EXPERIENCED

1:53:58BECAUSE I BELIEVE THESE ISSUES

1:54:00DESERVE TRANSPARENCY AND

1:54:02APPROPRIATE INDEPENDENT REVIEW

1:54:03.

1:54:03BOSTON RESIDENTS SHOULD HAVE

1:54:05CONFIDENCE THAT ASSESSMENTS AND

1:54:07ABATEMENTS ARE ADMINISTERED

1:54:09CONSISTENTLY, OBJECTIVELY AND

1:54:11FAIRLY.

1:54:11THANK YOU FOR YOUR OPPORTUNITY

1:54:13TO TESTIFY.

1:54:14OKAY.

1:54:15>> THANK YOU VERY MUCH.

1:54:17UM OKAY.

1:54:17WE WILL TURN TO OUR PANELISTS.

1:54:19UH.

1:54:20NOW UM.

1:54:21UH, CHRIS AM I LEHMAN AM I

1:54:23PRONOUNCING RIGHT?

1:54:24OKAY.

1:54:25UM SO SO IF YOU YOU HAVE AN

1:54:27OPENING STATEMENT WE'LL HEAR

1:54:28FROM YOU FIRST AND THEN WE'LL

1:54:29HEAR FROM, UH, PROFESSOR SINGH

1:54:31AFTER THAT.

1:54:32THANK YOU.

1:54:32>> CHAIR WEBER.

1:54:33UH, AND THANKS TO THE WHOLE

1:54:34COUNCIL FOR HAVING A HEARING ON

1:54:35THIS IMPORTANT TOPIC.

1:54:36UH, THANK YOU TO

1:54:37COUNCILOR CULPEPPER FOR

1:54:37INVITING ME.

1:54:38UH.

1:54:38GOOD AFTERNOON.

1:54:39MY NAME IS CHRIS LEHMAN.

1:54:40UH, I'M HERE TODAY TO REPRESENT

1:54:42THE SMALL PROPERTY OWNERS

1:54:43ASSOCIATION, WHICH REPRESENTS

1:54:44OWNERS OF SMALL RENTAL

1:54:45PROPERTIES ACROSS

1:54:46MASSACHUSETTS.

1:54:47UH, AND SPECIFICALLY I'M HERE

1:54:48TO SHARE SOME DATA AND THOUGHTS

1:54:50ABOUT THE PROPERTY ASSESSMENT

1:54:51AND TAX TAXATION PRACTICES

1:54:53OF THE CITY OF BOSTON AND HOW

1:54:54THEY AFFECT BOTH SMALL

1:54:56LANDLORDS AND THE RENTERS THEY

1:54:57SERVE.

1:54:58MY CORE CLAIM IS THAT BOSTON'S

1:55:00INCONSISTENT ASSESSMENT AND

1:55:02TAXATION OF DIFFERENT

1:55:03CATEGORIES OF RESIDENTIAL

1:55:04PROPERTIES IS FUNDAMENTALLY

1:55:06UNFAIR TO BOTH THE OWNERS

1:55:08OF NATURALLY AFFORDABLE RENTAL

1:55:09PROPERTIES AND TO RENTERS

1:55:10THEMSELVES.

1:55:11BOSTON NOMINALLY HAS A CONSTANT

1:55:14PROPERTY TAX OF 1.24% FOR ALL

1:55:17RESIDENTIAL PROPERTIES, BUT

1:55:18THIS IS UNDERMINED BY TWO

1:55:21PRACTICES ITS UNDERVALUATION

1:55:22OF THE HIGHEST END HOMES AND

1:55:24ITS HIGHER AGGREGATE TAXATION

1:55:26OF RENTERS VIA THE HOMESTEAD

1:55:28EXEMPTION.

1:55:29FIRST, THE UNDERVALUATION AND

1:55:32ANALYSIS PRODUCED BY SPIRA AND

1:55:34VERIFIED BY THE BOSTON GLOBE

1:55:35FOUND THAT SINGLE FAMILY HOMES

1:55:36IN BOSTON AT THE LOW END OF THE

1:55:38SALE PRICE RANGE ARE GENERALLY

1:55:39ASSESSED AT VALUES CLOSE TO

1:55:41THEIR SAME YEAR SALE PRICES

1:55:42RANGING FROM 99% TO 105% ON

1:55:46AVERAGE DEPENDING ON THE YEAR.

1:55:47THIS PATTERN IS SIMILAR IF NOT

1:55:49WORSE FOR NATURALLY AFFORDABLE

1:55:51RENTAL PROPERTIES, TRIPLE

1:55:52DECKERS ETC. FOR WHICH A SURVEY

1:55:54FOUND CITY ASSESSMENT AT AN

1:55:55AVERAGE OF 113% OF MARKET

1:55:58VALUE.

1:55:59HOMES AT THE HIGH END, HOWEVER,

1:56:00ARE MEANINGFULLY UNDER ASSESSED

1:56:02RELATIVE TO THEIR SALE PRICES

1:56:03RANGING FROM 68% TO 80% ON

1:56:06AVERAGE DEPENDING ON THE YEAR.

1:56:08THESE AVERAGE IS ALSO HIGH

1:56:10DRAMATIC VARIATION.

1:56:11MANY HIGH END PROPERTIES ARE

1:56:13ASSESSED AT LESS THAN HALF

1:56:14OF THEIR SAME YEAR SALE PRICE,

1:56:15WITH SOME UNDER 30%.

1:56:18AS COUNCILOR CULPEPER HAS

1:56:18NOTED, 1 OR 2 INSTANCES OF THIS

1:56:21COULD BE CHALKED UP TO UNUSUAL

1:56:22OUTLIER TRANSACTIONS AN

1:56:25IDIOSYNCRATIC BUYER WHOSE

1:56:25PREFERENCES DIVERGE

1:56:26SIGNIFICANTLY FROM THE BROADER

1:56:27MARKET, FOR INSTANCE.

1:56:28BUT THIS IS HAPPENING WITH A

1:56:30MEANINGFUL PERCENTAGE OF HIGH

1:56:31END PROPERTIES YEAR AFTER YEAR

1:56:33.

1:56:34IN OTHER WORDS, IT APPEARS TO

1:56:35REFLECT A BUILT IN BIAS OF THE

1:56:37CITY'S ASSESSMENT SYSTEM

1:56:39TOWARDS VALUING HIGH END HOMES

1:56:41SIGNIFICANTLY BELOW THEIR

1:56:42MARKET VALUES.

1:56:43UH ACTING COMMISSIONER WONG

1:56:45EARLIER NOTED THAT THEY HAVE A

1:56:47STANDARD PRACTICE OF EXCLUDING

1:56:49OUTLIER PROPERTIES UH AND THIS

1:56:50SEEMS TO BE A KEY FACTOR BEHIND

1:56:53WHY THESE HIGH VALUE PROPERTIES

1:56:54ARE NOT BEING ASSESSED CLOSE TO

1:56:56THEIR REAL MARKET VALUES.

1:56:58UM MODELS ARE USEFUL TO THE

1:57:00DEGREE THAT THEY MAKE ACCURATE

1:57:01PREDICTIONS.

1:57:02UH, IF YOU HAVE A MODEL THAT'S

1:57:03OFF BY 2% WITH ITS PREDICTIONS

1:57:05YOU CAN SAY THAT'S A FAIRLY

1:57:07GOOD MODEL IF YOU HAVE A MODEL

1:57:08THAT'S OFF BY 70% WITH ITS

1:57:10PREDICTIONS.

1:57:11THAT'S A MODEL THAT CLEARLY

1:57:13NEEDS SIGNIFICANT IMPROVEMENT.

1:57:13UM, IF THAT WERE A MODEL THAT

1:57:15WERE USED IN THE PRIVATE

1:57:16SECTOR, WHOEVER WAS USING IT TO

1:57:17MAKE DECISIONS WOULD BE OUT

1:57:19OF BUSINESS VERY QUICKLY.

1:57:19THE CONSEQUENCES FOR A CITY

1:57:21LIKE BOSTON ARE DIFFERENT BUT

1:57:22STILL MEANINGFUL AND THE CITY

1:57:24HAS REVENUE PROBLEMS AS HAS

1:57:25BEEN NOTED.

1:57:27THIS HAS A REAL IMPACT ON THE

1:57:28CITY'S TAX BASE IN FISCAL YEAR

1:57:312026, UNDER ASSESSMENT OF JUST

1:57:32THE TOP 20 HOMES AMOUNTED TO

1:57:35$83 MILLION AN AMOUNT THAT

1:57:36WOULD SCALE UP CONSIDERABLY IF

1:57:37EXPANDED TO, FOR INSTANCE, THE

1:57:40TOP 100 PROPERTIES.

1:57:41THIS IS A HIGHLY SALIENT FACT

1:57:43GIVEN THE CITY'S CURRENT

1:57:44REVENUE CRISIS, AND IT'S

1:57:45UNCLEAR WHY THE CITY IS

1:57:47PURSUING AGGRESSIVE ASSESSMENTS

1:57:48OF THE STRUGGLING OFFICE SECTOR

1:57:50WHILE IGNORING CLEAR REVENUE

1:57:52OPPORTUNITIES LIKE THIS.

1:57:54UH, SECONDLY, I'D LIKE TO TALK

1:57:55ABOUT THE HOMESTEAD EXEMPTION.

1:57:57THIS POLICY ENABLES HOMEOWNERS

1:57:58TO DEDUCT UP TO $4,353.74 FROM

1:58:03THEIR ANNUAL PROPERTY TAX BILL,

1:58:05REDUCING THESE BILLS BY AS MUCH

1:58:06AS 90%.

1:58:08AS A RESULT, BOSTON'S

1:58:09HOMEOWNERS PAY LESS THAN HALF

1:58:10THE NOMINAL TAX RATE ON A

1:58:12MEDIAN PRICED HOME WHILE RENTAL

1:58:14HOUSING PAYS THE FULL BILL.

1:58:15THE HOMESTEAD EXEMPTION MEANS

1:58:17THAT RENTAL HOUSING PAYS A

1:58:18HIGHER TAX RATE THAN IF ALL

1:58:20HOUSING WERE TREATED EQUALLY.

1:58:21THIS ISN'T JUST UNFAIR TO THE

1:58:23OWNERS OF RENTAL HOUSING BUT

1:58:25ALSO TO THE TENANTS THE RENTERS

1:58:26.

1:58:27RECENT STUDIES SHOW THAT 50 TO

1:58:3089% OF PROPERTY TAX DIFFERENCES

1:58:31ARE PASSED ON TO RENTERS.

1:58:33IN OTHER WORDS, THE HOMESTEAD

1:58:35EXEMPTION FORCES LANDLORDS AND

1:58:36RENTERS TO SUBSIDIZE

1:58:38HOMEOWNERS.

1:58:39AN OUTCOME THAT RUNS COUNTER TO

1:58:40THE CITY'S STATED GOAL

1:58:42OF IMPROVING AFFORDABILITY FOR

1:58:43RENTERS.

1:58:44UH.

1:58:44IT'S BEEN NOTED THAT THE UH

1:58:47HOMESTEAD EXEMPTION IS

1:58:48PROGRESSIVE.

1:58:49UH THAT'S TRUE NARROWLY WITHIN

1:58:50THE CATEGORY OF HOMEOWNERS IT

1:58:52IS PROGRESSIVE WITHIN THE

1:58:53CATEGORY OF HOMEOWNERS BUT IT'S

1:58:55REGRESSIVE.

1:58:56WHEN IT LOOKED AT THE CITY AS A

1:58:58WHOLE, THE MAJORITY OF CITY

1:58:59RESIDENTS ARE RENTERS.

1:59:00UH, AND IT DISFAVOR RENTERS WHO

1:59:02ARE ON AVERAGE LOWER INCOME

1:59:03THAN HOMEOWNERS.

1:59:06TOGETHER THESE PRACTICES FAVOR

1:59:08HOMEOWNERS OVER RENTERS AND

1:59:10OWNERS OF LUXURY HOMES OVER

1:59:11OWNERS OF MORE MODEST ONES.

1:59:13IN DOING SO, THEY EXACERBATE

1:59:14EXISTING INEQUITIES AND RUN

1:59:16COUNTER TO BASIC NORMS OF TAX

1:59:18DESIGN.

1:59:18SOME TAXES LIKE SALES TAXES ARE

1:59:20FLAT, APPLYING AN EQUAL RATE TO

1:59:22EVERYONE.

1:59:23OTHER TAXES LIKE INCOME TAXES

1:59:24ARE PROGRESSIVE TAXING HIGHER

1:59:27EARNERS AT A HIGHER RATE.

1:59:28THE TAX POLICIES I'VE DESCRIBED

1:59:30HERE TEND TO TAX LOWER INCOME

1:59:32RESIDENTS AT HIGHER RATES, A

1:59:33PATTERN THAT IS PERVERSE AND

1:59:34UNJUST.

1:59:35TO BE CLEAR I'M A BUSINESSMAN,

1:59:37I LIKE CAPITALISM.

1:59:38I DON'T WANT TO SEE PUNITIVE

1:59:40TAXATION OF PEOPLE AND

1:59:41BUSINESSES AT THE HIGH END.

1:59:42BUT I ALSO DON'T THINK IT'S

1:59:44RIGHT FOR LUXURY HOMES TO BE

1:59:45TAXED AT A FRACTION OF THEIR

1:59:46ACTUAL VALUE OR FOR RENTERS TO

1:59:49BE TAXED AT ELEVATED RATES TO

1:59:50BENEFIT HOMEOWNERS FOR THE SAKE

1:59:52OF FAIRNESS AND ACCURACY.

1:59:53I BELIEVE THAT THESE POLICIES

1:59:54SHOULD BE CHANGED.

1:59:57OKAY.

1:59:57>> THANK YOU VERY MUCH.

1:59:58CAN WE GO TO QUESTIONS WITH UH

2:00:00FIRST UH THE OTHER PANELISTS

2:00:02PROFESSOR SINGH.

2:00:03CAN YOU HEAR ME?

2:00:05CAN YOU HEAR ME?

2:00:06OKAY.

2:00:07YES.

2:00:08>> OKAY, GREAT.

2:00:09UM.

2:00:10GOOD AFTERNOON.

2:00:11THANK YOU.

2:00:11CHAIR WEBER AND MEMBERS.

2:00:13>> OF THE COMMITTEE FOR THE

2:00:14INVITATION.

2:00:15MY NAME.

2:00:15>> IS RICHIE THING.

2:00:16I'M AN ASSOCIATE PROFESSOR

2:00:17OF REAL ESTATE AT UNIVERSITY

2:00:19OF GEORGIA.

2:00:20AND I STUDY.

2:00:21HOW HOMES ARE ASSESSED AND

2:00:23TAXED.

2:00:24THE QUESTION BEFORE YOU.

2:00:25>> IS WHETHER BOSTON ASSESSES

2:00:27HIGHER PRICED HOMES TO LOW AND

2:00:29LOWER PRICED HOMES TO HIGH.

2:00:31IT IS A FAIR QUESTION AND

2:00:33PEOPLE ARE RIGHT TO ASK IT.

2:00:35MY ANSWER IS THIS.

2:00:37THE EXAMPLES IN THE HEARING

2:00:38ORDER ARE A SMALL NUMBER

2:00:39OF SALES, MOST OF THEM AT THE

2:00:42VERY TOP.

2:00:43WHEN YOU.

2:00:44>> LOOK AT ALL THE SALES,

2:00:46BOSTON'S ASSESSMENT MEETS

2:00:47PROFESSIONAL STANDARDS FOR

2:00:48TREATING LOW PRICED AND HIGH

2:00:51PRICED HOMES ALIKE.

2:00:52ONCE THE RESIDENTIAL EXEMPTION

2:00:54IS ACCOUNTED FOR, LOWER PRICED

2:00:56HOMES WHOSE OWNERS LIVE IN THEM

2:00:58AND PAY A SMALL A SMALLER SHARE

2:01:01OF THEIR VALUE IN TAX THEN

2:01:03HIGHER PRICED HOMES DO.

2:01:06ANY SYSTEM WILL MISS ON SOME

2:01:08INDIVIDUAL HOMES AND THAT

2:01:09SHOULD BE FIXED.

2:01:11BUT THAT IS NOT EVIDENCE OF A

2:01:12SYSTEM TILTED AGAINST ORDINARY

2:01:14HOMEOWNERS.

2:01:16I WILL MAKE THREE POINTS AND

2:01:17SAY WHAT COULD BE BETTER?

2:01:20MY FIRST POINT IS THAT WE

2:01:21SHOULD NOT LOOK AT ONLY THE TOP

2:01:22PROPERTIES.

2:01:24A SALE PRICE IS ONE BUYERS

2:01:25PRICE IN ONE DEAL.

2:01:27IT IS AN ESTIMATE OF MARKET

2:01:29VALUE NOT THE TRUE VALUE AND IT

2:01:32CARRIES NOISE FROM THAT DEED.

2:01:34SO NO SINGLE SALE AND NO SMALL

2:01:36GROUP OF SALES CAN SETTLE WHERE

2:01:38THE ASSESSMENTS ARE RIGHT?

2:01:41THE TOP ALONE CANNOT SHOW HOW

2:01:43THE WHOLE SYSTEM IS WORKING.

2:01:45A FAIR TEST USES ALL THE VALID

2:01:47SALES FROM THE LOWEST PRICED

2:01:50HOMES TO THE HIGHEST, NOT JUST

2:01:51A HANDFUL AT THE TOP.

2:01:53MOST OF THE EVIDENCE I PRESENT

2:01:55COMES FROM RESEARCH BY RON

2:01:57ROCKWELL.

2:01:58HE WORKED IN BOSTON ASSESSING

2:02:00DEPARTMENT FOR MORE THAN 25

2:02:01YEARS AND WAS ITS COMMISSIONER

2:02:03.

2:02:04HE IS NOW A FELLOW AT THE

2:02:04LINCOLN INSTITUTE OF LAND

2:02:05POLICY.

2:02:06HIS FINDINGS DO NOT REST ON A

2:02:09SAMPLE.

2:02:09HE PICKED THE REST OF THE SALES

2:02:11THE STATE DEPARTMENT OF REVENUE

2:02:13CONSIDERS VALID ASSESSORS MUST

2:02:15REPORT SALES TO THE STATE AND

2:02:17MARK THE ONES THAT WERE NOT

2:02:19NORMAL OPEN MARKET SALES SUCH

2:02:21AS FAMILY SALES, FORECLOSURES

2:02:24HOME SUBSTANTIALLY CHANGED

2:02:25BETWEEN THE ASSESSMENT AND THE

2:02:27SALE AND THE SALES OF SEVERAL

2:02:29CLASSES.

2:02:30THOSE SALES ARE NOT USED IN THE

2:02:32ANALYSIS AND THE REVIEW IS

2:02:34SUBJECTIVE TO THE STATE AUDIT.

2:02:35THE LIMITS.

2:02:36>> HE USES ARE THE ONES

2:02:38RECOMMENDED BY THE

2:02:38INTERNATIONAL ASSOCIATION

2:02:40OF ASSESSING OFFICERS AND NOT

2:02:41HIS OWN.

2:02:43HE STUDIED 2017 SALES IN

2:02:45SUFFOLK COUNTY, MOST OF WHICH

2:02:47WERE IN BOSTON.

2:02:48THE LOWEST PRICED 10TH OF HOMES

2:02:50SOLD WAS ASSESSED AT ABOUT 95%

2:02:53OF THE SALE PRICE.

2:02:54THE HIGHEST PRICE SPENT WAS AT

2:02:57ABOUT 91%.

2:02:58EVERY STANDARD MEASURE WAS

2:03:00INSIDE PROFESSIONAL LIMITS.

2:03:03IN BOSTON'S 2021 SALES MEASURES

2:03:04WERE AGAIN WELL INSIDE THE

2:03:06LIMIT IN THE FISCAL YEAR 2026

2:03:08DATA FOR SINGLE FAMILY HOMES

2:03:11THE LOWEST AND THE HIGHEST

2:03:12STANDS WERE LESS THAN ONE

2:03:14PERCENTAGE POINT APART.

2:03:15MOST OF THE EXAMPLES IN THE

2:03:17HIRING ORDERS COME FROM THE

2:03:18VERY TOP OF THE MARKET, BUT THE

2:03:20VERY TOP IS NOT TYPICAL ACROSS

2:03:23THE WHOLE HIGHEST PRICE TEN

2:03:25ASSESSMENTS ARE IN THE LOW 90S

2:03:27AS A PERCENTAGE OF SALE PRICE.

2:03:29MY SECOND POINT IS WHY THE TWO

2:03:31ENDS OF THE MARKET ARE THE

2:03:33HARDEST TO VALUE.

2:03:34SOME OF THIS IS DOCUMENTED,

2:03:36SOME IS LIKELY BUT NOT PROVEN

2:03:38AND I'LL SAY WHICH IS WHICH BUT

2:03:40WHAT IS DOCUMENTED VALUATION

2:03:43MODELS LEARN FROM SALES AND THE

2:03:45MORE UNUSUAL A HOME IS THE

2:03:47FEWER SIMILAR SALES THERE ARE

2:03:49TO LEARN FROM VALUATION MODELS

2:03:51ESTIMATE FROM SALES LIKE THE

2:03:53REGRESSION MODELS MANY

2:03:54ASSESSORS YOU ALSO TEND TO

2:03:57TREAT THE MOST UNUSUAL HOME AT

2:03:59THE TOP AND AT THE BOTTOM AS

2:04:01MORE ORDINARY THAN THEY ARE.

2:04:03MY COAUTHOR DANIEL MACMILLAN, A

2:04:05PROFESSOR AT THE UNIVERSITY

2:04:06OF ILLINOIS CHICAGO, HAS

2:04:08STUDIED UH, SIMILAR PROPERTIES

2:04:10IN CHICAGO.

2:04:12HE FOUND THAT AT VERY LOW SALE

2:04:13PRICES, ASSESSMENTS WERE NOT

2:04:15ONLY MUCH HIGHER AS A SHARE

2:04:17OF PRICES BUT ALSO FAR MORE

2:04:19VARIABLE.

2:04:21ONE MORE THING CAN MAKE TWO

2:04:22CAREFUL STUDIES DISAGREE IS

2:04:25WHICH SALES BECOME AN EARLY

2:04:27BOOK WHICH IS NOT YET

2:04:28PUBLISHED.

2:04:29DANIEL MACMILLAN FOUND BOSTON

2:04:31INSIDE THE PROFESSION LIMIT

2:04:33EVERY YEAR USING THE SALE THE

2:04:35STATE CONSIDERS VALID WITH A

2:04:37COMMERCIAL FILE OF THE KIND

2:04:39MANY NATIONAL STUDIES USED.

2:04:40IT LOOKED FAR WORSE UNTIL HE

2:04:43KEPT ONLY SALES THAT THE STATE

2:04:45ALSO ACCEPTS.

2:04:46THEN THE RESULTS NEARLY MATCH.

2:04:49NOW WHAT IS LIKELY BUT NOT

2:04:51PROVEN BOTH ENDS ARE UNUSUAL

2:04:54MARKETS WITH DISTRESSED SALES

2:04:56AT THE BOTTOM AND ONE OF A KIND

2:04:58HOME AT THE TOP.

2:05:00ASSESSORS USUALLY CANNOT GO

2:05:01INSIDE SO POOR CONDITION OR

2:05:04EXPENSIVE FINISHES MAY BE

2:05:06MISSED.

2:05:07WHO SELLS MAY NOT BE RANDOM

2:05:09EITHER.

2:05:09THIS IS MY OWN REASONING.

2:05:12A SELLER IN FINANCIAL TROUBLE

2:05:13MAY LET A HOME RUN DOWN AND

2:05:15SELL BELOW ITS ASSESSMENT.

2:05:17AN OWNER WHO FIXES A HOME UP

2:05:19BEFORE SELLING MAY SELL ABOVE

2:05:20IT, AND OWNERS OF EXPENSIVE

2:05:23HOMES MAY BE MORE LIKELY TO

2:05:24APPEAL.

2:05:25THAT WOULD NOT BE A FAVORITISM

2:05:27BY ASSESSOR.

2:05:29UH BOSTON'S AP RECORDS COULD

2:05:30SHOW WHETHER THAT HAPPENS IN

2:05:32BOSTON.

2:05:34MY THIRD POINT IS THAT WE

2:05:35SHOULD NOT LOOK ONLY AT

2:05:37ASSESSED VALUES BUT AT THE TAX

2:05:39BILL PEOPLE ACTUALLY PAY.

2:05:41BOSTON GIVES A RESIDENTIAL

2:05:42EXEMPTION TO OWNERS WHO LIVE IN

2:05:44THEIR HOMES.

2:05:45EACH YEAR THIS COUNCIL SETS IT

2:05:47AT THE MOST THE STATE ALLOWS.

2:05:49IT IS THE SAME DOLLAR AMOUNT

2:05:50FOR NEARLY EVERY QUALIFYING

2:05:52HOME.

2:05:53THIRD PART IS FAR MORE IN

2:05:54PROPORTION TO A LOWER PRICED

2:05:56HOME.

2:05:57HERE IS AN EXAMPLE FOR THE

2:05:59FISCAL YEAR 2026 USING SOME

2:06:01OF MY OWN CALCULATION.

2:06:03THE EXEMPTION TAKES ABOUT

2:06:06351,000 OF THE ASSESSED VALUE

2:06:08OF A QUALIFYING HOME BEFORE THE

2:06:10TAX IS CALCULATED.

2:06:12TAKE TWO HOMES EACH LIVED IN BY

2:06:14ITS OWNER AND ASSESSED AT FULL

2:06:16VALUE.

2:06:17THE FIRST IS ASSESSED AT

2:06:20$500,000.

2:06:21THE EXEMPTION REMOVES ABOUT 70%

2:06:23OF THAT VALUE FROM THE TAX, AND

2:06:25THE BILL FALLS FROM AROUND 6200

2:06:29TO 1008 50.

2:06:30THE SECOND IS ASSESSED AT 5

2:06:33MILLION.

2:06:33THE SAME 351,000 IS ABOUT 7%

2:06:36OF ITS VALUE, AND THE BILL

2:06:38FALLS FROM ABOUT 62,000 TO

2:06:40ABOUT 57,650.

2:06:43SO THE 500,000 HOME PAYS ABOUT

2:06:460.4% OF ITS VALUE IN TAX AND

2:06:48THE $5 MILLION HOUSE PAYS ABOUT

2:06:511.2%.

2:06:52THAT IS ROUGHLY THREE TIMES THE

2:06:54RATE.

2:06:55TWO LIMITATIONS THE EXEMPTION

2:06:58DOES NOT DIRECTLY HELP RENTERS

2:07:01OR OWNERS WHO DO NOT LIVE IN

2:07:02THE PROPERTY, AND IT FEATURES.

2:07:05ONLY THE.

2:07:05>> OWNERS WHO APPLY FOR IT.

2:07:08MOVING ON TO WHAT COULD BE

2:07:09BETTER?

2:07:10EVEN A SYSTEM WITH WITHIN

2:07:11STANDARDS CAN IMPROVE.

2:07:12AND HERE IS WHAT WHERE I WOULD

2:07:14FOCUS.

2:07:15THE FIRST IS LOCATION.

2:07:17MANY VALUATION MODELS USE

2:07:19NEIGHBORHOOD BOUNDARIES THAT

2:07:20MAY BE TOO BROAD TO CAPTURE THE

2:07:22DIFFERENCES IN VALUE FROM ONE

2:07:24STREET TO THE NEXT.

2:07:25MODELS THAT USE FINER

2:07:27GEOGRAPHIC AREAS OR CONTROLLED

2:07:29DIRECTLY FOR LOCATION COULD

2:07:30CAPTURE THESE DIFFERENCES.

2:07:32THE SECOND IS METHODS THAT

2:07:34VALUE HOMES MORE ACCURATELY AT

2:07:36THE TWO ENDS OF THE PRICE

2:07:38RANGE.

2:07:39ONE I THINK MIGHT HELP IS

2:07:41SPATIAL QUANTILE REGRESSION IN

2:07:43PLAIN TERMS.

2:07:44IT LETS A VALUATION MODEL WORK

2:07:46DIFFERENTLY FOR LOW PRICED AND

2:07:48HIGH PRICED HOMES AND FROM ONE

2:07:50LOCATION TO ANOTHER.

2:07:52A SECOND COULD BE INDEPENDENT

2:07:54AUTOMATED VALUATION MODELS.

2:07:56ONE OF THE KIND THE LENDERS USE

2:07:58MIGHT ALSO HELP AS A CHECK.

2:08:00I HAVE NOT TESTED WHETHER IT

2:08:02WOULD BE BETTER.

2:08:04THE THIRD IS BETTER INFORMATION

2:08:06ABOUT THE INSIDE AND CONDITION

2:08:08OF HOMES.

2:08:09NEW TOOLS SUCH AS STREET LEVEL

2:08:11AND AERIAL IMAGERY HELP WITH

2:08:12THE OUTSIDE.

2:08:14THE INSIDE IS COSTLY TO COLLECT

2:08:16AND IT DEPENDS ON OWNERS

2:08:17ALLOWING ACCESS.

2:08:20APPRAISERS ALREADY COLLECT THIS

2:08:21INFORMATION INCLUDING INTERIOR

2:08:23CONDITION.

2:08:24WHEN THEY APPRAISE HOMES FOR

2:08:25MORTGAGE LOANS, IF THE CITY CAN

2:08:28GET ACCESS TO THE DATA, IT CAN

2:08:30USE IT TO.

2:08:31THE FOURTH IS VERY TOP OF THE

2:08:33MARKET WHERE THERE ARE VERY FEW

2:08:35COMPARABLE SALES FOR THOSE

2:08:37HOMES.

2:08:37THE CITY COULD CONSIDER SENDING

2:08:39AN APPRAISER TO INSPECT THE

2:08:40HOUSE AS THE LENDER DOES BEFORE

2:08:43MAKING A MORTGAGE LOAN THAT

2:08:46WOULD NEED THE OWNER'S

2:08:46COOPERATION AND IT COSTS MORE

2:08:48FOR EACH HOME.

2:08:49BUT IT WOULD APPLY TO ONLY A

2:08:51SMALL NUMBER OF HOMES.

2:08:54MR RECORDS RESEARCH SUPPORTS UH

2:08:56THE FIRST THREE POINTS THAT I

2:08:57MADE AND NONE OF THIS IS A

2:09:00QUICK FIX.

2:09:00UH, IN THE MEANTIME, THE TIMELY

2:09:03ANSWER IS THE FLAT DOLLAR

2:09:05EXEMPTION BOSTON ALREADY HAS.

2:09:07SO A PRACTICAL STEP NOW IS

2:09:09MAKING SURE THAT EVERY ELIGIBLE

2:09:11OWNER ACTUALLY RECEIVES IT

2:09:13BECAUSE IT MUST BE APPLIED FOR.

2:09:16TO CONCLUDE A SMALL NUMBER

2:09:18OF PROPERTIES CANNOT TELL US

2:09:20HOW MORE THAN 100,000 UH

2:09:22ASSESSMENTS ARE WORKING.

2:09:24OVERALL, BOSTON'S ASSESSMENTS

2:09:25MEET PROFESSIONAL STANDARDS FOR

2:09:27TREATING LOW PRICED AND HIGH

2:09:28PRICED HOMES ALIKE.

2:09:30BUT OWNERS WHO LIVE IN THEIR

2:09:31HOMES AND APPLY FOR THE

2:09:33EXEMPTION THE EXEMPTION MORE

2:09:34THAN OFFSETS THE SMALL GAP THAT

2:09:36REMAIN WHEN INDIVIDUAL HOMES

2:09:39ARE MISSED.

2:09:40WE SHOULD FIX THEM.

2:09:41UH.

2:09:41THANK YOU.

2:09:42I'M HAPPY TO TAKE YOUR

2:09:43QUESTION.

2:09:44OKAY.

2:09:45>> THANK YOU VERY MUCH.

2:09:46UH, SO COUNCILOR CULPEPER, UH,

2:09:49I DON'T KNOW.

2:09:50I'M GOING TO SET THE TIMER AT

2:09:51SEVEN MINUTES AND THEN, UH, SEE

2:09:53WHERE WE'RE AT.

2:09:55THANK YOU, MR CHAIR.

2:09:57UM, PROFESSOR SINGH, WHAT

2:10:02RECOMMENDATIONS WOULD YOU HAVE

2:10:03OR DO YOU HAVE WITH REGARD TO

2:10:06WHAT YOU'VE SEEN IN THE

2:10:07ASSESSING AND SOME OF THE

2:10:11ISSUES THAT WE'VE BEEN

2:10:12DISCUSSING DURING THIS HEARING

2:10:14?

2:10:14WHAT DO YOU RECOMMEND?

2:10:17SO I WOULD START BY GOING BACK

2:10:19TO SOME OF THE QUESTIONS THAT

2:10:20YOU WERE ASKING EARLIER IN THE

2:10:22SENSE OF WHY DO WE HAVE SUCH

2:10:23HIGH DISCREPANCIES IN THESE

2:10:25HIGH PRICED PROPERTIES?

2:10:27SO WHEN WE ARE USING A MODEL

2:10:30WHAT IS HAPPENING IS WE TRYING

2:10:32TO COME UP WITH A VALUE OF HOW

2:10:35MUCH WOULD AN ADDITIONAL

2:10:35BEDROOM COST OR HOW MUCH WOULD

2:10:37AN ADDITIONAL BOX COST.

2:10:39AND WE APPLY THE SAME AVERAGE

2:10:42COST ESTIMATE FOR THIS

2:10:43ADDITIONAL BEDROOM A BATHROOM

2:10:44TO ALL THE HOUSES IN A

2:10:46PARTICULAR LOCATION BUT THAT'S

2:10:49DEFINITELY NOT TRUE.

2:10:50SO FOR HOUSES WHICH ARE

2:10:52EXPENSIVE, THE QUALITY OF THE

2:10:54BEDROOMS AND BATHROOMS WOULD BE

2:10:55MUCH BETTER.

2:10:56AND IT'S JUST HARDER TO ACCOUNT

2:10:59FOR GIVEN THE DATA THAT WE HAVE

2:11:02UM OR THE ASSESSOR'S OFFICE HAS

2:11:04BECAUSE IT JUST HARDER TO COME

2:11:06UP WITH HOW MUCH BETTER THIS

2:11:07BEDROOM IS OR HOW MUCH WITHOUT

2:11:09HAVING SOME STANDARD MEASURES.

2:11:12SO ONE IDEA COULD BE AS WE DO

2:11:16WHAT LENDERS DO WHEN THEY GET

2:11:17AN APPRAISAL DONE.

2:11:18SO WHEN WE ARE TRYING TO GET A

2:11:20HOME LOAN THEY ACTUALLY SEND IN

2:11:23AN APPRAISER TO VALUE THE HOUSE

2:11:25AND THEY USE THE SALES

2:11:27COMPARISON APPROACH.

2:11:28LOOK AT THREE OTHER VALUES AND

2:11:29OF COURSE THEY TAKE SUBJECTIVE

2:11:30CALLS OF WHAT THIS ADDITIONAL

2:11:32BEDROOM A BATHROOM WHICH WOULD

2:11:33COST AND PROBABLY WE COULD USE

2:11:35A SIMILAR METHOD FOR THE VERY

2:11:38HIGH END PROPERTIES WHERE WE

2:11:40DON'T HAVE ENOUGH COMPARABLE

2:11:43DATA, ENOUGH COMPARABLE SALES.

2:11:46UH THE OTHER WOULD BE USING

2:11:50AUTOMATED VALUATION MODELS.

2:11:51UH, NOW IT'S A PROBLEM IN USING

2:11:54AUTOMATED VALUATION MODELS

2:11:55BECAUSE IT'S MORE OF A BLACK

2:11:56BOX AND IT WOULD BE DIFFICULT

2:11:59TO EXPLAIN TO THE PUBLIC IN THE

2:12:01SENSE OF HOW THESE ASSESSED

2:12:02VALUES ARE REALLY BEING

2:12:04CALCULATED.

2:12:05UH, THAT COULD BE A SECOND

2:12:07APPROACH, BUT ONE WOULD NEED TO

2:12:08DO SOME TESTING BECAUSE I

2:12:09HAVEN'T TESTED IT MYSELF AS TO

2:12:11HOW MUCH BETTER IT DOES BECAUSE

2:12:12THE KEY UNDERLYING PROBLEM IS

2:12:15NOT HAVING GOOD QUALITY DATA

2:12:18FOR THESE VERY HIGH END

2:12:19PROPERTIES.

2:12:20AND THE THIRD COULD BE USING

2:12:21SOMETHING LIKE A SPATIAL

2:12:22QUANTILE REGRESSION MODEL WHICH

2:12:24WOULD TRY TO FIT A SLIGHTLY

2:12:27DIFFERENT KIND OF MODEL FOR THE

2:12:28HIGH END PROPERTIES COMPARED TO

2:12:31THOSE OF THE LOW END

2:12:32PROPERTIES.

2:12:34AND SO IS THAT SOMETHING YOU

2:12:37THINK THAT WE MIGHT NEED TO

2:12:41MAKE AS AN AMENDMENT TO AN

2:12:44ORDINANCE?

2:12:47I'M NOT REALLY SURE ABOUT THAT

2:12:50PORTION IN THE SENSE OF HOW THE

2:12:52LAW IS WRITTEN IN TERMS OF WHAT

2:12:54MODELS CAN BE USED.

2:12:55BUT OF COURSE THERE SHOULD BE

2:12:57SOME TESTING BEFORE IT'S

2:12:58IMPLEMENTED ON GROUND TO SEE

2:12:59WHETHER THIS REALLY MAKES A

2:13:00DIFFERENCE BECAUSE THIS IS JUST

2:13:03MY HYPOTHESIS.

2:13:05THANK YOU.

2:13:06>> UM.

2:13:10PROFESSOR LEHMAN, YOU WERE

2:13:12TALKING ABOUT THAT $82 MILLION.

2:13:15TALK ABOUT THAT A LITTLE BIT

2:13:17MORE THEN I WANT TO TALK A

2:13:18LITTLE BIT ABOUT THE BURDEN

2:13:21THAT RENTERS ARE FACING AS A

2:13:25RESULT OF THIS.

2:13:29ASSESSMENT SYSTEM.

2:13:31YEAH.

2:13:31>> THANK YOU.

2:13:32SO THE I THINK IT WAS MY

2:13:34IMPRESSION $83 MILLION IS THE

2:13:36JUST FOR THE TOP 20 PROPERTIES

2:13:38.

2:13:38THE DEGREE TO WHICH THAT THEIR

2:13:39VALUES WERE UNDER ASSESSED

2:13:40RELATIVE TO THE ACTUAL MARKET

2:13:42PRICES THAT WERE, YOU KNOW,

2:13:43ESTABLISHED BY THE SALES.

2:13:44UH, AND SO THAT IS A, YOU KNOW

2:13:46,PORTION OF THE CITY'S

2:13:47POTENTIAL PROPERTY TAX BASE

2:13:49THAT WAS JUST NOT TAXED.

2:13:50RIGHT.

2:13:51UM, AND SO, YOU KNOW, GIVEN THE

2:13:52PROJECTIONS THAT, YOU KNOW,

2:13:53VARIOUS GROUPS HAVE COME OUT

2:13:55WITH SHOWING THE POTENTIALLY

2:13:56FAIRLY SEVERE REVENUE

2:13:58SHORTFALLS THAT ARE FACING THE

2:13:59CITY RIGHT NOW TO BE IGNORING

2:14:01THAT KIND OF, YOU KNOW, PORTION

2:14:03OF THE TAX BASE.

2:14:05WHILE THAT'S NOT A MASSIVE

2:14:06PERCENTAGE OF THE TAX BASE, YOU

2:14:08PLAUSIBLY MIGHT ALSO INTERPRET

2:14:09IT DOWN TO, YOU KNOW, THE TOP

2:14:1140 TOP 50 PROPERTIES AND GET

2:14:13MORE OUT OF THAT.

2:14:14BUT ANY SOURCE OF REVENUE SEEMS

2:14:16WORTH GOING AFTER IN THIS CASE,

2:14:17ESPECIALLY WHERE IT'S

2:14:19CONSISTENT WITH HAVING A MORE

2:14:21EVEN RATE OF TAXATION ACROSS

2:14:23PROPERTIES IN THE CITY

2:14:24OF BOSTON.

2:14:24UM, THAT'S THE PIECE ON THE 83

2:14:27MILLION.

2:14:27THE OTHER QUESTION ABOUT THE

2:14:28IMPACT ON.

2:14:30>> THE 82 MILLION HOW MANY

2:14:31PROPERTIES WOULD THAT REPRESENT

2:14:33?

2:14:34SO SO THAT'S ONLY THE TOP 20

2:14:35RIGHT?

2:14:35THE TOP 22 2220 ALONE THAT.

2:14:38>> EVEN MILLION DOLLARS WAS

2:14:39JUST THE TOP.

2:14:4120 CORRECT?

2:14:41>> OKAY.

2:14:42YEAH.

2:14:44AND YOU WANT TO TALK ABOUT THE

2:14:46THE THE.

2:14:46>> THE EXEMPTION.

2:14:47YES.

2:14:47SO UH YOU KNOW MY MY

2:14:49UNDERSTANDING OF THE CITY'S TAX

2:14:52UH, PROCESS IS YOUR PROPERTY

2:14:54TAX PROCESS AT LEAST YOU HAVE

2:14:56TWO CATEGORIES, RIGHT?

2:14:57YOU HAVE THE COMMERCIAL

2:14:58PROPERTIES AND THE RESIDENTIAL

2:14:59PROPERTIES.

2:14:59YOU HAVE THE THE SPLIT UH

2:15:01OF THE ASSESSMENT THERE AND

2:15:02THAT RESULTS IN DIFFERENT

2:15:03MILLAGE RATES.

2:15:04AND THEN WITHIN RESIDENTIAL

2:15:06PROPERTIES THERE IS SOME THERE

2:15:08FOR SOME FIXED AMOUNT THAT'S

2:15:09BEEN DETERMINED BY THAT SPLIT

2:15:11BETWEEN RESIDENTIAL AND

2:15:12COMMERCIAL AND THAT HAS TO BE

2:15:14MADE UP BY THE OVERALL SET

2:15:16OF RESIDENTIAL PROPERTIES.

2:15:18UM WHAT'S DONE BY THE HOMESTEAD

2:15:20EXEMPTION IS TRANSFERRING A

2:15:22LARGE PORTION OF WHAT WOULD BE

2:15:24AN EVEN RATE OF YOU KNOW, LET'S

2:15:25SAY 1.24% ACROSS ALL THE

2:15:28RESIDENTIAL PROPERTIES AND

2:15:29TAKING THAT BURDEN OFF

2:15:31OF HOMEOWNERS AND PLACING IT

2:15:32ONTO RENTERS.

2:15:33RIGHT.

2:15:33IT'S THE SAME TOTAL AMOUNT

2:15:34OF MONEY BUT YOU'RE SHIFTING A

2:15:36LARGE CHUNK OF IT.

2:15:37I HAVEN'T DONE THE MATH ON THE

2:15:38AGGREGATE AGGREGATE AMOUNT BUT

2:15:39IT'S PRESUMABLY, YOU KNOW,

2:15:41HUNDREDS OF MILLIONS UH AND AND

2:15:43PUT OR MAYBE NOT THAT MUCH BUT

2:15:45QUITE A LARGE AMOUNT RIGHT 4000

2:15:46PER UNIT PER YEAR AND

2:15:48TRANSFERRING THAT OVER TO

2:15:51RENTERS AND RENTAL PROPERTY

2:15:51OWNERS.

2:15:53TO DO YOU THINK THE.

2:15:57THE ASSESSMENT IS ACCURATE?

2:16:01UH SO WELL THERE'S TWO

2:16:02DIFFERENT ISSUES RIGHT.

2:16:03ONE IS THE ASSESSMENT ISSUE

2:16:05WHERE IT SEEMS LIKE THE CITY IS

2:16:07DOING A PRETTY ACCURATE JOB

2:16:09OF ASSESSING THE VALUES

2:16:11OF RESIDENTIAL PROPERTIES AT

2:16:13THE LOW END RIGHT THAT THAT

2:16:14BOTTOM 20 THE THE ASSESSMENT IS

2:16:16PRETTY ACCURATE YOU KNOW

2:16:18AMAZING.

2:16:18YEAH.

2:16:19YEAH.

2:16:19UH YOU KNOW IT IS A MUCH LESS

2:16:21ACCURATE ASSESSMENT IT SEEMS AT

2:16:23THE TOP END BUT THIS IS A

2:16:24SEPARATE ISSUE.

2:16:25THIS IS ONCE WE'VE DETERMINED

2:16:26WHAT THOSE ASSESSMENTS ARE DO

2:16:29WE GIVE SPECIAL TAX BREAKS TO

2:16:31ONE CATEGORY OR ANOTHER.

2:16:32AND HERE IT'S BEEN DETERMINED

2:16:33THAT HOMEOWNERS ARE GOING TO

2:16:35GET UP TO $4.3 THOUSAND

2:16:37ANNUALLY TAKEN AWAY FROM THEIR

2:16:39TAX BILL WHICH IN MANY CASES IS

2:16:4090% OF THEIR ENTIRE TAX BILL.

2:16:42BUT THAT REVENUE STILL HAS TO

2:16:44COME FROM THE OTHER HALF OF OR

2:16:45MORE THAN HALF, RIGHT.

2:16:46BECAUSE RENTERS ARE ABOUT TWO

2:16:48THIRDS I THINK OF THE CITY THAT

2:16:50HAS TO COME FROM THE RENTAL

2:16:52PROPERTIES IN WHICH RENTAL IN

2:16:53WHICH RENTERS LIVE WHICH AGAIN

2:16:55STUDIES HAVE SHOWN THE COST IS

2:16:56PASSED ON TO THE RENTERS

2:16:57THEMSELVES.

2:16:59AND SO FOR THE WHAT DO YOU

2:17:04RECOMMEND WITH REGARD TO SO WE

2:17:07KNOW THE COSTS ARE BEING PASSED

2:17:09ON TO RENTAL INCOME PROPERTIES

2:17:11.

2:17:11WHAT'S YOUR RECOMMENDATION

2:17:13OF HOW TO FIX THIS?

2:17:14NOW LOOK YOU CAN'T SAY DO AWAY

2:17:18WITH THE EXEMPTION RIGHT

2:17:19BECAUSE WE'LL GET RUN OUT

2:17:21OF BOSTON IF WE START TALKING

2:17:23ABOUT THAT.

2:17:24WHAT DO YOU SAY?

2:17:26YEAH I MEAN THIS IS AN AREA

2:17:27WHERE MY MY EXPERTISE IS IN THE

2:17:30ECONOMICS OF IT AND THE

2:17:31FINANCES OF IT AND YOU KNOW,

2:17:33IT'S UP TO ELECTED OFFICIALS TO

2:17:34DETERMINE HOW THAT MEETS UP

2:17:35WITH THE POLITICAL REALITY.

2:17:37BUT BUT MY SUGGESTION HERE

2:17:38WOULD BE BECAUSE I I DON'T

2:17:40THINK THIS IS A SALIENT ISSUE

2:17:41ON THE TOP OF MOST RENTERS

2:17:42MINDS.

2:17:43RIGHT.

2:17:43MANY RENTERS PROBABLY DON'T

2:17:44KNOW THERE IS A HOMESTEAD

2:17:45EXEMPTION.

2:17:46I THINK IF MORE RENTERS WERE

2:17:47AWARE THAT THEY'RE BEING MADE

2:17:51TO INDIRECTLY BECAUSE OF COURSE

2:17:52THEY'RE NOT DIRECTLY PAYING IT,

2:17:53IT'S THE THEIR LANDLORDS WHO

2:17:54ARE DOING IT.

2:17:55THEY'RE BEING MADE TO

2:17:56INDIRECTLY PAY HIGHER TAXES

2:17:57BECAUSE OF THIS CITY POLICY.

2:17:59UM THAT CHANGES THE POLITICAL

2:18:00DYNAMIC RIGHT?

2:18:01HOMEOWNERS ARE ACUTELY AWARE

2:18:03OF IT BECAUSE THEY SEE IT TAKEN

2:18:04OUT OF THEIR TAX BILL EVERY

2:18:05YEAR.

2:18:05RENTERS JUST AREN'T THINKING

2:18:06ABOUT IT.

2:18:07UM, AND THERE ARE QUITE A FEW

2:18:09MORE UH, RENTERS THAN

2:18:10HOMEOWNERS IN THE CITY

2:18:11OF BOSTON.

2:18:12SO IF YOUR GOAL IS TO MAKE THAT

2:18:14PORTION OF THE SYSTEM MORE FAIR

2:18:15,MORE EQUITABLE, UH, I THINK

2:18:17RAISING AWARENESS WITH RENTERS

2:18:18WOULD BE THE PLACE YOU WOULD

2:18:20START AND THEN YOU COULD MOVE

2:18:21ON TO THE ACTUAL REFORM

2:18:23PROPOSALS.

2:18:23WELL, YOU KNOW, I JUST

2:18:24SUBMITTED A HEARING ORDER TO

2:18:28RELIEVE NONPROFITS FROM HAVING

2:18:31TO PAY PART OF THE TAXES THAT

2:18:34THEY'RE, UH THAT THE OWNER OF A

2:18:37BUILDING THAT THEY'RE BRINGING

2:18:39IN HAS TO PAY THEY ACTUALLY

2:18:41HAVE TO PAY PART OF THAT TAXES

2:18:43THE NON PROFITS.

2:18:44YEAH.

2:18:44SO I AT LEAST CARVED OUT

2:18:46NONPROFITS NOT ALL RENTERS BUT

2:18:49I CARVED OUT THE NONPROFITS

2:18:52BECAUSE THE IMPACT THAT IT HAS

2:18:53ON THEM.

2:18:56UM DETERMINES WHAT THEY CUT OUT

2:18:58FROM THEIR PROGRAMS.

2:18:59YEAH.

2:19:00>> SO UH AND IT'S TRUE THAT

2:19:01THAT WOULD.

2:19:02BENEFIT THE SUBSET OF RENTERS

2:19:03WHO ARE DIRECTLY AFFECTED

2:19:04THERE.

2:19:05MY GENERAL INCLINATION AS YOU

2:19:07KNOW, IN TERMS OF BROAD TOP

2:19:08LEVEL POLICY DESIGN PRINCIPLES

2:19:10IS TO HAVE A MORE EVEN AND

2:19:11BROADER BASE RATHER THAN

2:19:13CREATING LOTS OF SPECIFIC CARVE

2:19:14OUTS.

2:19:15OBVIOUSLY AGAIN, I UNDERSTAND

2:19:16THERE'S POLITICAL

2:19:17CONSIDERATIONS AROUND ALL

2:19:17OF THIS BUT YOU KNOW, THINKING

2:19:18ABOUT BOSTON'S TAX BASE WRIT

2:19:20LARGE, RIGHT?

2:19:21BOSTON HAS I DON'T KNOW,

2:19:22HUNDREDS.

2:19:23OF TENS HUNDREDS OF BILLIONS

2:19:25OF PROPERTY VALUE THAT ISN'T

2:19:26TAXED RIGHT BECAUSE IT'S HELD

2:19:28BY UNIVERSITIES, HOSPITALS,

2:19:29NONPROFITS ETC. UM, AND SO

2:19:31THAT'S YOU KNOW, BOSTON

2:19:33TAXPAYERS WOULD BE MUCH, MUCH

2:19:34HIGHER IF THAT WERE TAXED.

2:19:35AND SO.

2:19:35THE QUESTION OF WHETHER.

2:19:37TO CONTINUE DECREASING THE

2:19:39PERCENTAGE OF BOSTON'S PROPERTY

2:19:41VALUE THAT IS TAXED IS A

2:19:43COMPLEX ONE.

2:19:44THANK YOU THANK YOU, THANK YOU.

2:19:46OKAY.

2:19:47>> UH YEAH.

2:19:47THANK YOU.

2:19:48UM, JUST A FEW QUESTIONS, UH,

2:19:50FOR ME.

2:19:52SO I MEAN, I THINK WE HEARD

2:19:53FROM COMMISSIONER WONG LIKE THE

2:19:55THE ONE PROPERTY EVERYONE

2:19:56FOCUSES ON.

2:19:56IT WAS THE PROCESS TO 12 AND IT

2:19:59SOLD FOR 20.

2:20:00HE'S SAYING THAT IF YOU LOOK AT

2:20:02THE TWO FAMILY OR IN THAT AREA

2:20:04OR WHATEVER THAT UNIT WAS THAT

2:20:06THE THE SALES WERE FOR 13, 12,

2:20:0913 MILLION.

2:20:11SO YOU KNOW, I THINK HE'S

2:20:12SUGGESTING THAT THE ASSESSMENT

2:20:14WAS RIGHT AND THAT THERE WAS

2:20:16JUST A SALE THAT WENT FOR

2:20:18WHATEVER REASON WAY ABOVE WHAT

2:20:20THE MARKET WAS.

2:20:22UH, SO I GUESS WHAT'S YOUR

2:20:24RESPONSE TO THAT?

2:20:25YEAH.

2:20:26>> MY RESPONSE THERE IS THAT

2:20:26YOU KNOW, WE'RE LOOKING AT A

2:20:28LARGE NUMBER OF DIFFERENT

2:20:29ASSESSMENTS AND SO IF YOU WERE

2:20:30TO FIND ONE OUTLIER AMONG MANY,

2:20:32MANY ASSESSMENTS THAT WOULD BE,

2:20:34YOU KNOW, UNDERSTANDABLE.

2:20:35BUT YOU KNOW, WE WE SAW A LIST

2:20:37OF MANY, MANY PROPERTIES THAT

2:20:38HAVE THESE CHARACTERISTICS AND

2:20:40UH, YOU KNOW, IT SUGGESTS TO

2:20:41ME THAT.

2:20:42YOU KNOW, YOU DESCRIBED A FEW.

2:20:44>> DIFFERENT ELEMENTS OF HIS

2:20:45MODELING PROCESS, RIGHT?

2:20:46FIRST THERE IS A LINEAR

2:20:48REGRESSION RIGHT WHERE YOU

2:20:49KNOW, YOU DRAW THE BEST FIT

2:20:50LINE THROUGH ALL THESE DOTS.

2:20:52UM.

2:20:52>> BUT IT'S NOT.

2:20:53STRICTLY A LINEAR REGRESSION,

2:20:54RIGHT?

2:20:54HE'S ELIMINATING CERTAIN DOTS

2:20:56IN ORDER TO CALCULATE THAT LINE

2:20:58SO THOSE DOTS DON'T PLAY INTO

2:20:59THE VALUATION.

2:21:00THOSE DOTS ARE THOSE OUTLIERS

2:21:02AT THE TOP.

2:21:02SO THE.

2:21:04>> OF THE LINE.

2:21:04IS GOING.

2:21:05>> TO BE DIFFERENT.

2:21:06IT'S GOING TO BE FLATTER AND

2:21:07THEREFORE HAVE LOWER

2:21:09ASSESSMENTS FOR HIGH END

2:21:10PROPERTIES HIGHER ASSESSMENT

2:21:10FOR LOW END PROPERTIES BECAUSE

2:21:12YOU'RE ELIMINATING.

2:21:13THOSE PIECES OF DATA FROM THE

2:21:15CORRELATION.

2:21:16UM SECONDLY THERE'S A QUESTION

2:21:17ABOUT YOU KNOW.

2:21:17IS A LINEAR FIT ACTUALLY THE

2:21:19BEST ANSWER RIGHT A LINEAR FIT

2:21:20IS THE SIMPLEST FIT IT'S

2:21:21EASIEST TO.

2:21:22>> DO THE MATH ON.

2:21:23>> BUT YOU KNOW LOOKING AT THE.

2:21:24PLOT THAT.

2:21:25>> HE PUT UP.

2:21:25>> THERE IT LOOKED CLOSER TO

2:21:26YOU KNOW.

2:21:27QUADRATIC FIT RIGHT?

2:21:28IT'S UPWARD CURVING AS OPPOSED

2:21:29TO A.

2:21:30FLAT.

2:21:31UM THERE.

2:21:32ARE LOTS OF DIFFERENT WAYS YOU

2:21:33COULD MODEL IT MATHEMATICALLY

2:21:34RIGHT A USE A QUADRATIC IS IT

2:21:35SOME KIND OF PIECEWISE FUNCTION

2:21:37?

2:21:37BUT UH.

2:21:38>> YOU KNOW, I.

2:21:39GUESS IF.

2:21:39>> WE'RE THINKING.

2:21:40>> ABOUT LIKE BROAD TRENDS IN

2:21:41THE ECONOMY THESE DAYS.

2:21:42>> PEOPLE.

2:21:42TALK ABOUT.

2:21:43>> THE K-SHAPED.

2:21:43ECONOMY, RIGHT?

2:21:44YOU HAVE DRAMATICALLY DIFFERENT

2:21:45TRENDS THAT ARE AFFECTING

2:21:46PEOPLE'S WILLINGNESS TO PAY FOR

2:21:48GOODS, SERVICES, HOUSING ETC.

2:21:50UM, AT THE HIGH AND LOW END AND

2:21:53UH.

2:21:53>> YOU KNOW, IT'S ABSOLUTELY

2:21:54PLAUSIBLE.

2:21:55THAT IF YOU'RE TRYING TO USE

2:21:56ONE FITTING METHOD FOR THE

2:21:58ENTIRE DATA SET OR ESPECIALLY

2:22:00THE.

2:22:00KIND OF SIMPLEST.

2:22:01LINEAR FITTING METHOD FOR THE

2:22:02ENTIRE DATA SET THAT.

2:22:03>> IT'S MISSING A.

2:22:04LOT OF IMPORTANT NUANCE IN THE

2:22:06TRENDS THAT ARE ACTUALLY

2:22:07SHAPING HOW PROPERTIES ARE

2:22:09VALUED AND.

2:22:09SOLD IN THE ECONOMY.

2:22:10OKAY.

2:22:11>> BUT I I THOUGHT YOUR

2:22:12ANALYSIS WAS UM, PICKING 20 AT

2:22:14THE BOTTOM AND 20 AT THE TOP.

2:22:16SO YEAH, I MEAN ISN'T THAT

2:22:19CHERRY PICKING?

2:22:20UH WELL I MEAN IT'S NOT LIKE.

2:22:22>> AN ARBITRARILY SELECTED SET

2:22:23RIGHT?

2:22:24IT IS.

2:22:25A YOU.

2:22:25>> KNOW.

2:22:26PREDEFINED SET AND THEN YOU

2:22:27LOOK AT IT WITHIN THAT SAMPLE.

2:22:29IF I WERE CHERRY PICKING SAY

2:22:31JUST THE PROPERTIES THAT HAVE

2:22:32THE HIGHEST RATIO OF VALUATION

2:22:36TO SALE PRICE THAT WOULD.

2:22:37BE CHERRY PICKING.

2:22:38INSTEAD WE'RE LOOKING AT TWO

2:22:40DIFFERENT SEGMENTS PREDEFINED

2:22:42RIGHT.

2:22:42SIMILARLY HOW HE'S DESCRIBING

2:22:44THEY LOOK AT PROPERTIES IN

2:22:45DIFFERENT QUARTILES RIGHT.

2:22:46YOU DEFINE.

2:22:47UPFRONT WHAT THE SEGMENT.

2:22:49IS BASED ON.

2:22:49IT'S YOU KNOW PERCENTILES THAT

2:22:51IT MAKES UP OF THE.

2:22:52DISTRIBUTION AND YOU CAN DO.

2:22:53ANALYSIS ON THAT IN.

2:22:55>> A YOU KNOW INTELLECTUALLY.

2:22:56FAIR WAY.

2:22:57>> OKAY I GUESS PROFESSOR SINGH

2:22:58WHY DO WE USE UH LINEAR

2:23:01ANALYSIS OR YOU KNOW, IT'S

2:23:04REGRESSIVE AND NOT, YOU KNOW, A

2:23:07DIFFERENT KIND, YOU KNOW,

2:23:09WHATEVER THAT WAS.

2:23:09UH.

2:23:10SO I THINK MOST ASSESSOR'S

2:23:12OFFICE USE THE LINEAR KIND AND

2:23:15MY UNDERSTANDING FROM SPEAKING

2:23:17TO DIFFERENT ASSESSORS IS IS

2:23:18EASIER TO EXPLAIN AND EASIER TO

2:23:20UNDERSTAND THE OTHER MODELS

2:23:22THERE ARE SOME CITIES WHICH USE

2:23:23OTHER MODELS LIKE THE SPATIAL

2:23:25QUANTILES REGRESSIONS WHICH ARE

2:23:27SLIGHTLY MORE UH COMPLICATED UH

2:23:31BUT YEAH THE LINEAR MODEL WOULD

2:23:32HAVE THAT ISSUE OF MISSING THE

2:23:34TWO TAILS OF THE DISTRIBUTION

2:23:36AND ESPECIALLY IF YOU START

2:23:37LOOKING AT THE BOTTOM 20 AND

2:23:39TOP 20 OR YOU KNOW THE BOTTOM

2:23:4250 BECAUSE THE BOTTOM 20 OF THE

2:23:43TOP 20 IS A VERY SMALL SHARE

2:23:46OF ALL THE ASSESSMENTS THAT ARE

2:23:47TAKING PLACE IN BOSTON IN A.

2:23:49PARTICULAR YEAR.

2:23:50AND THEY WOULD BE OFF ON THOSE

2:23:52TWO TAILS.

2:23:53OKAY.

2:23:54>> AND THEN THE THE LINCOLN UH

2:23:56WHEN THEY'RE GOING TO MISS THIS

2:23:57UM, INSTITUTE OF LAND POLICIES

2:24:00A VERSATILE UH VERTICAL EQUITY

2:24:02APP DOES THAT AGAIN JUST DRAW A

2:24:04LINE ACROSS OR OR THE I KNOW

2:24:07THERE'S DIFFERENT TESTS THAT

2:24:08THEY'RE USING DOES THAT.

2:24:09YEAH IT'S DIFFERENT USE THE

2:24:11DIFFERENT UH USING DIFFERENT UH

2:24:14TESTS AND IF I EVEN DO IT MUCH

2:24:16FINER SO RATHER THAN DOING THE

2:24:18QUARTILES IF I IF I DIVIDE THE

2:24:20WHOLE DISTRIBUTION INTO TEN

2:24:21DIFFERENT PIECES, THE DISTANCE

2:24:24IN THE ASSESSMENT RATIO WHICH

2:24:26IS JUST ASSESSED VALUES DIVIDED

2:24:28BY C AND PRICES IS VERY SIMILAR

2:24:31OR WITHIN ONE PERCENTAGE POINT

2:24:33DIFFERENCE FOR THE LOWEST 10TH

2:24:35OF THE DISTRIBUTION AND THE

2:24:36HIGHEST 10TH OF THE

2:24:37DISTRIBUTION.

2:24:39UH BUT IF YOU START CUTTING IT

2:24:40FINER AND FINER INSTEAD

2:24:42OF SAYING 10TH IF YOU SAY 0.5

2:24:44PERCENT OF THE DISTRIBUTION

2:24:45WATER 1.5% OF THE TOP THE GAP

2:24:48WOULD START TO WIDEN.

2:24:50OKAY.

2:24:51>> AND THEN I GUESS YOU KNOW,

2:24:52HAVING LOOKED IN OTHER CITIES

2:24:54AND WHEN YOU LOOK AT THE I MEAN

2:24:57AS AS AS UH COUNCILOR CULPEPER

2:25:00COMMISSIONER COUNCIL PRESIDENT

2:25:01CULPEPER HAS HIGHLIGHTED YOU

2:25:02KNOW, IN THE TOP 20 IN THE

2:25:04BOTTOM 20 YOU MEAN IN THOSE YOU

2:25:06DO SEE A PATTERN OF, YOU KNOW,

2:25:08MORE ACCURATE ASSESSMENTS AT

2:25:10THE LOWER VALUE YOU.

2:25:12>> WOULD.

2:25:13YOU WOULD WHAT WHAT DO YOU

2:25:14THINK.

2:25:15YOU KNOW NOW YOU WOULD SEE A.

2:25:16SIMILAR PATTERN FOR MOST OF THE

2:25:19CITIES UH IN THE COUNTRY AND UH

2:25:24MOST OF THE OTHER CITIES WOULD

2:25:25BE MUCH MORE REGRESSIVE ON THE

2:25:27TAX BILL.

2:25:28UH, BOSTON TURNS OUT TO BE MUCH

2:25:30MORE PROGRESSIVE ON THE TAX

2:25:33BILL.

2:25:33UH, GIVEN THE RESIDENTIAL

2:25:35EXEMPTION THAT'S THERE WHICH IS

2:25:36REALLY ON THE HIGHER END UM,

2:25:40WHEN YOU COMPARE IT ACROSS

2:25:41DIFFERENT CITIES IN THE

2:25:42COUNTRY.

2:25:44UM, OKAY.

2:25:45AND THEN JUST AT THAT TOP END

2:25:46WHERE IT SEEMS LIKE, YOU KNOW,

2:25:49WE'RE JUST MISSING THIS UH, AT

2:25:51THE AT THE VERY YOU KNOW, THE

2:25:52TOP 20 MAYBE IT'S TOP 100, YOU

2:25:54KNOW, UH, LIKE UH WHAT HE I

2:25:57GUESS YOU MENTIONED

2:25:59COUNCILOR CULPEPER ASKED YOU,

2:26:00UH, HAVING A SORT OF MORE ON

2:26:03SITE VIEWING BUT LIKE, YOU

2:26:05KNOW, IF THERE'S UH IF AS

2:26:08COMMISSIONER WANG SAID IS

2:26:09CORRECT LIKE SOMEBODY JUST

2:26:10COMES IN AND THROWS AN

2:26:12INCREDIBLY HIGH NUMBER I DON'T

2:26:14KNOW, LIKE IS THERE ANYTHING

2:26:15ELSE IN ADDITION TO WHAT YOU

2:26:17SUGGESTED THAT WE SHOULD BE

2:26:18DOING?

2:26:19WELL, I THINK GETTING MORE DATA

2:26:22ON THE INTERIOR QUALITY AND I'M

2:26:24NOT.

2:26:25VERY SURE AS TO HOW BOSTON DOES

2:26:27IT.

2:26:27SO WE NEED MORE INFORMATION

2:26:29THAN JUST WHETHER IT'S ONE

2:26:31BEDROOM AND ONE BATHROOM.

2:26:32WE COULD WE NEED INDICATORS

2:26:34OF ONE BEDROOM WHICH IS BETTER

2:26:35THAN THE AVERAGE BEDROOM IN

2:26:37THIS PRICE IN THIS NEIGHBORHOOD

2:26:40OR WORSE THAN YOU KNOW THE

2:26:42AVERAGE.

2:26:42SO WE NEED SOME SORT OF A.

2:26:44QUALITATIVE VARIABLE TO

2:26:46MEASURE.

2:26:47IT AND EVEN THEN IT WOULD BE

2:26:48DIFFICULT BUT AT LEAST IT WOULD

2:26:50GET US SOMETHING CLOSER UH, FOR

2:26:52THOSE HIGH END PROPERTIES

2:26:53BECAUSE UH, I DON'T KNOW.

2:26:57TO WHAT.

2:26:58>> EXTENT WE ARE UM, YOU KNOW.

2:27:01CONTROLLING FOR THE.

2:27:02INTERIOR QUALITY OF THESE

2:27:04HOUSES.

2:27:04BUT HAVING SAID THAT, I DO

2:27:06AGREE THAT IT'S A VERY

2:27:07DIFFICULT TASK TO DO BECAUSE

2:27:09THEN SUBJECTIVE ASSESSMENTS

2:27:10COME INTO PLACE.

2:27:12YEAH.

2:27:12>> I MEAN I GUESS IT'S JUST A

2:27:14COMMENT AND TO SOME EXTENT I

2:27:16FEEL LIKE THERE THE THERE'S TO

2:27:19THE EXTENT THAT THERE'S TWO

2:27:21SIDES THERE'S SORT OF TALKING

2:27:22PAST EACH OTHER I HEAR YOU KNOW

2:27:25RON ROCO YOU KNOW COMMISSIONER

2:27:26WONG TO SOME EXTENT YOU

2:27:28PROFESSOR SAYING SAYING LOOK IF

2:27:29YOU DO THE THE THE STATISTICS

2:27:31AND THE MATH ANALYSIS THIS IS

2:27:34THIS IS NOT UH REGRESSIVE WHICH

2:27:36IS THE THING YOU'D BE WORRIED

2:27:37ABOUT.

2:27:38IN FACT THE IF YOU LOOK AT THE

2:27:39BILLS IT'S PROGRESSIVE BUT THEN

2:27:41YOU YOU AT THE SAME TIME YOU

2:27:42CAN HOLD UP PLENTY OF EXAMPLES

2:27:44YOU KNOW THAT THAT SHOW THAT

2:27:46THAT IT'S NOT WORKING AS

2:27:48INTENDED.

2:27:49YOU KNOW SORT OF AND I ASSUME

2:27:50THOSE ARE ON THE THE EDGES.

2:27:52SO I JUST IT'S UH LIKE I GUESS

2:27:55I JUST ONE LAST COMMENT FROM

2:27:57YOU PROFESSOR SAYING ABOUT YOU

2:27:59KNOW, WHAT DO WE DO?

2:28:01WE JUST LOOK AT THAT AND SAY

2:28:02OKAY LIKE THERE'S ALWAYS GOING

2:28:03TO BE OUTLIERS.

2:28:04CAN BOTH THINGS BE TRUE THAT

2:28:06THAT WE THAT WE CAN LOOK AT THE

2:28:08TOP 20 BOTTOM 20 AND SEE THIS

2:28:10PATTERN YET WHEN YOU LOOK AT

2:28:11THE OVERALL LIKE HOW DO WE HOW

2:28:14DO THE NON STATISTICAL MINDED

2:28:16PEOPLE PROCESS THAT SORT.

2:28:19>> OF YOU KNOW THAT'S.

2:28:19>> A GREAT QUESTION.

2:28:22UH YEAH.

2:28:23SO ON AVERAGE.

2:28:24IT'S IT'S DOING A GOOD JOB BUT

2:28:26IT IS MISSING THE TWO DAYS NOW

2:28:28AS THE CALCULATIONS SHOW THE

2:28:30WHAT WAS OKAY.

2:28:31SHOULD WE LEAVE $83 MILLION ON

2:28:33THE TABLE?

2:28:34PROBABLY NOT.

2:28:35UH, BUT WE MAYBE YOU KNOW, WE

2:28:39COULD USE MORE COMPLICATED

2:28:40MODELS OR, UH, DO SOMETHING

2:28:42DIFFERENT FOR THESE VERY HIGH

2:28:44END, UH, PROPERTIES.

2:28:46UH, YEAH.

2:28:47OKAY.

2:28:48>> OKAY.

2:28:49>> THANK YOU.

2:28:50COUNCIL COPE EVERYONE GOOD.

2:28:52OKAY I'LL I'LL TAKE IT.

2:28:53UH, ACTUALLY I JUST UH OKAY.

2:28:57I JUST WANTED TO THANK YOU, UH,

2:28:58FOR ITS LONG WAIT.

2:29:00GET UP HERE.

2:29:01UM, I WANT TO THANK YOU,

2:29:02PROFESSOR SINGH.

2:29:03UH, MR LEHMAN FOR BEING HERE.

2:29:05UH, I JUST WANT TO THANK

2:29:06COUNCILOR COPPER FOR FILING

2:29:07THIS REALLY FOR ME EDUCATIONAL

2:29:09,UH, HEARING.

2:29:11UM, AND I WANT TO THANK

2:29:13EVERYONE FOR LISTENING AND AND

2:29:14LOOK FORWARD TO THE

2:29:16CONVERSATION.

2:29:16UM, WITH THAT SAID, UH, THIS

2:29:19HEARING IS NOW ADJOURNED.

2:29:20THANK YOU.

2:29:21>> THANK YOU.

2:29:40>>