You don’t
Your controller raised your county tax rate
You need a reality check
UPMC is the largest real estate owner in Allegheny County
My real estate broker figured out that $315,000,000 in tax dollars are lost due to abandoned properties not paying tax.
I completely understand the upmc, non profit, etc thing.
Here is her letter she sent to Pgh council. This is reality.
How to create affordable housing opportunities in Allegheny County? Sell all of the tax delinquent abandoned properties for just the taxes owed. The purchaser will be responsible for quieting the title. This process will give the buyer good, clean title to the property. This process typically costs approximately $5,000. The buyer must be owner/occupant, or investor willing to buy, renovate and sell at price set by County. Low interest loans could be provided through URA and other avenues to aid people in purchasing these homes. Contractors and their bids must be approved by county selected appraisers. These appraisers will aid the purchaser to establish the cost of renovations.
The real estate agents at my company would be thrilled with the opportunity to create affordable housing. We would list the properties for sale via the multi-list system. This system makes them openly available to the public. It shares information to Zillow, Realtor.com, Redfin and every other real estate search engine. My agents would charge $2,350.00 as commission to the seller. This would be added to the sales price of the home. This commission would cover the agent for the seller and the agent for the buyer. This commission would be paid by the buyer.
For example, if taxes owed are $15,000, commission $2,350, transfer tax $150, and quiet title $5,000. The property could be purchased for $22,500.00. Depending on how much work the home needs to be livable, the total package would be less than $200,000, and could be less than $125,000.
If the County has 100,000 tax delinquent properties, this would pay off taxes, give money to municipalities, schools and the county. It would also put these properties back on the tax rolls and they would be productive again. So, 100,000 properties assessed at $100,000 would create revenue of at least $2,500 for city of Pittsburgh, $3,800 for many other municipalities, split between the school county and municipality, library and parks. This would bring in increased revenue. Hopefully enough so that the school boards will back off wanting a county wide reassessment and the county will not need to raise its millage. These properties could bring in approximately $315,000,000 per year in tax revenue every year.
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A county wide reassessment will cause financial harm to the most vulnerable of populations, the elderly and fixed income. Interest rates at 3% caused housing inflation. Routinely houses in Lawrenceville sell at $600,000. Using those prices to reassess other properties, will dramatically raise taxes on people who have owned their homes for many years. Assessments use number of rooms and size of home based on square feet. They do not take into account the condition of the home, that one has been renovated and one that has never been renovated. This means people who have owned their homes for over 20 years could face huge increases in valuation due to the over inflated value of real estate and huge increases in their real estate taxes. The elderly and those on fixed income, and others may not be able to afford to stay in their homes.
Landlords who rent at affordable rental rates facing these huge tax increases will have to pass along those increases to their tenants. They will not be able to keep rents affordable. I know many landlords who try to keep rents below $1200 per month. With the much higher taxes, they will not be able to do so. As there are so many costs involved, from mortgage payments, taxes, insurance, water, repairs.
I would be very happy to meet to discuss my proposal to help the county turn tax delinquent, abandoned properties into useful, affordable housing that produces revenue for the county, and schools municipalities. Homes sales help to drive the economy as people hire contractors and buy materials to do the renovations. You may reach me at (redacted for privacy)