Board of Aldermen 11-27-2018 Page 8
| think when you look at the history of the last ten years, we came out of 2008 which was a nightmare,
had to be a nightmare for all assessing offices. The crash of the real estate market was tremendously
difficult; and in 2010 they did a reassessment that was not an easy task; 2013 they did a reassessment.
My observation of that, because it is on the data cards is that we over-corrected, heavily. | know in my
neighborhood, they cut houses $100,000.00 which was in some instances 25%, it was just so steep,
when the equalized ratio in 2010 was 1.1.
So | noticed we went up streets and gave $30,000.00 discounts to every home, whether it was worth
$200,000.00 or it was worth $300,000.00, it wasn’t percentage based. It was just a single swoop cut
and | think that led to part of the problem in this assessment cycle. We found condo units that had
been dropped from $120,000.00 to $70,000.00 in 2013 that are now up to $130,000.00 from KRT
coming in 2018. So it was a total boomerang process for the people in those communities. | am
disappointed that the assessing office and our chair or our manager didn’t say, “Hey we need to get a
report. Give us the distributions.” That KRT data base is listed by Ward, every Alderman could have
had a Ward report, really simple to run, to Know what happened in my Ward? What was the increase,
where are the problem areas? Who might | be hearing from? How simple would that be?
And then we would get to work in the communities and neighborhoods that are messed up and we
would be putting some extra focus time into those areas to correct it, because there is a lot corrective
work that needs to be done. | was out in my neighborhood today walking a dog and got stopped from
two people from the other end that had gotten their tax bills and one guy put the spread sheet together.
He knew | was the person being public and he was like, “Oh my god, what happened to my house, how
did this happen, how did | go from the 300’s to the upper 500’s, what happened in a week when all this
changed over”. It is hard for people to understand. And then they say, “Well | looked down the street
and there are a whole bunch of houses in the 300’s, we are all over the map over here, what
happened”. | know, yes | understand that, it is a problem. It all has to do, | did meet with the Board of
Assessors, it was a good meeting. It has to do with how we capture our permits and how we handle
our MLS data in-between assessing cycles.
It is abundantly clear to me that we do not value renovations and home improvements the way that the
sales market tells you we should value it. We are undervaluing grossly, | mean it is ridiculous. All
assessors, all good assessors will tell you, it is all about the sales data. This business is about the
sales data and that is why when we abate, we only allow people to come in, working off of sales data.
We don’t allow them to use comps that are not sales based because the sales data is the hard data. It
makes perfect sense, | understand that. But the assessors should be operating on that sales data too.
Every time they look at a property they need to be asking themselves, what will this property bring in a
market sale? What would it bring when they look at these improvements. | am finding lots of permits
for home renovations, major home renovations, that bring $10, $15, $20, $30K to the property when
they assess it.
Then when | look at the sales data and | looked at substantial homes that sold — when you look at a
house that undergoes a home renovation, you are getting between, in neighborhoods all over Nashua,
especially for the homes in the high 200’s or 300 range, when they completely renovate that house |
could show you 10 sales that the house popped $180,000.00 to $200,000 to $225,000.00. They are
hot and they go and there’s a lot of data to support that. It is right in our neighborhood and that is one
the reasons when | looked at your permit that | was concerned, Mr. Mayor, because it was so under-
valued for the work done and any other house, there are three or four houses right around your
neighborhood that when they did that level of work, their homes sold for $150, $200,000.00 more. They
really get that pop.
| feel that we are just not principled in the office down there, that we just don’t have practices in place. |
was very clear with the Board of Assessors that | felt policy needed to be created. | told them that it
says in the mission statement that their role is to review and make certain that the Assessing Office is
compliant with their policies. Well there appear to be none, so | encourage them to perhaps encourage