Twilight Zoning in Bellingham: Are Rooming Houses Lowering Your Property Values? Appeal Your Real Estate Valuation.

Sunday, September 30, 2007

Are Rooming Houses Lowering Your Property Values? Appeal Your Real Estate Valuation.

If those rooming houses on your street are ruining your quality of life, chances are they are also lowering your property values. Hulk vehicles, trash, poor maintenance, loud parties, public urination and public intoxication can be reasons you can use to challenge the assessed value of your property. I recently spoke to a homeowner on 34^th Street who had more than $20,000 shaved off her home valuation by the Whatcom County Board of Equalization based on the increased number of illegal and unmaintained rooming houses. She will see a reduction in her real estate taxes and the local governments will see a decrease in revenue. It is time to hit ‘em where it hurts, in the pocketbook. Perhaps then those responsible for non-enforcement of single family zoning will wake up and smell the coffee.

From the Whatcom County website: “The Board [of Equalization is wholly separate and apart from the Assessor's Office. They are comprised of three County residents appointed by the Whatcom County Council to three year terms. Board members are selected for their knowledge of real estate values and each member is required by law to attend an intensive five day course on the valuation of real property. Board members are salaried while they are in session and receive yearly continuing education from the Washington State Department of Revenue. The Board is directed by state law (Revised Code of Washington, RCW, and Washington Administrative Code, WAC). A list of Whatcom County's current Board members is available upon request.”

To appeal the assessed value of your home, go to the Whatcom County website (click here) It is a simple process as I was told by the homeowner above. The website provides a form (click here) . With your appeal, include photos of the rooming houses showing the trash, poor maintenance, etc. Include copies of police reports on noise violations or disorderly conduct. Copies of letters or other communication you may have had with the landlord may also be helpful.

If you had to sell your home tomorrow, would you receive top dollar or would prospective buyers ignore your home because of the adverse impact of rooming houses on your street?

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The Rationale for Rental Licensing

There is the definitive experience of cities that have already adopted rental licensing and inspections in the face of exactly the same opposition as we saw in Bellingham over the last decade. Ultimately, each of these cities was proven correct in its resolve to move ahead to protect the safety and health of the renters. We already know that the city of Pasco, WA found that 15% of the units inspected under their program had serious life/safety issues. 10% had mold problems. A full 85% had problems of varying degrees. The city of Gresham, OR performed over 1600 inspections in 2009 and issued, as a result, over 4,000 citations. Lexington, KY performed inspections of units near the University of Kentucky and found that 50% had life/safety issues. Sacramento, CA began an inspection program during which one third of the units inspected had serious safety and health issues. The question why does anyone believe that the condition of rental housing here in Bellingham does not mirror that which is found in cities that have the statistics to show that time and time again the condition of rentals in our cities is problematic? All we have had to date from those who oppose licensing are broad statements by the landlords and their paladins that are completely and utterly unsubstantiated. The Zonemaven has searched in vain for the horror stories that these opponents of licensing and inspections have predicted. On the other hand, The Zonemaven did find over 100 cities that have licensing AND inspections without the catastrophic effect for the rental markets that the landlords would have you believe. (See this blog's sidebar at bottom left for list)

One Reason Illegal Rooming Houses Do Not Work

The limit for unrelated persons at a single family home rental is three residents. Leases are signed by three people who then invite additional renters to join them to lower per capita rental rates. The perverse effect is that rental rates tend to rise under these circumstances making it difficult for single families to rent single family homes. Some local rental agencies facilitate this practice.

"To say that a family is so equivalent to a ragtag collection of college roommates as to require identical treatment in zoning decisions defies the reality of the place of the family in American society, despite any changes that institution has undergone in recent years. Only the most cynical among us would say that the American family has devolved to the point of no greater importance or consideration in governmental decision making than a group of college roommates." (Stegeman v. City of Ann Arbor)

That being said, accommodation ought to be made for protected classes, especially non-traditional unions and group houses for the disabled. These classes are laid out in federal and Washington State law.