REAL ESTATE TAX RELIEF WORKING GROUP
2100 Washington Blvd., Lower Level Auditorium
Meeting Minutes
October 24, 2016

REAL ESTATE TAX RELIEF WORKING GROUP MEMBERS PRESENT: Paul Holland, Pam Juhl, Edith Gravely, Kathryn Scruggs, Carolyn Day, Patty Sullivan, Evelyn Gee, Prentiss de Jesus, Jill Herndon, Pat Findikoglu, Peggy Jones
REAL ESTATE TAX RELIEF WORKING GROUP MEMBERS EXCUSED: Bill Staderman
STAFF: Anita Friedman (Director, Department of Human Services), Carla de la Pava (Treasurer), Jeanne Booth (Chief, Economic Independence Division), Caitlin Hutchison (Assistant Director, Department of Human Services), Kim Rucker (Chief Deputy Treasurer, Treasurer’s Office), Kasey Liedtke (Management and Budget Specialist, Department of Community Planning, Housing, and Development), David Remick (Alexandria/Arlington Regional Workforce Council Executive Director), Aaron McCready (Management Analyst, Community Assistance Bureau)

  1. Call to Orderat 6:06 p.m.

The meeting of the Real Estate Tax Relief (RETR) Working Group was called to order by Paul Holland, Working Group Chair.

  1. Announcements and Introductions
  2. Mr. Holland pointed out the materials in the packets that were distributed to attendees:
  3. FY 2018 Budget Guidance to the County Manager – instructs the Manager to provide recommendations for consideration for changes to the RETR Program based on the RETR Working Group’s feedback;
  4. Proposed Constitutional Amendment to be voted on in Virginia in the November 8th election – asks if the Constitution of Virginia should be amended to allow localities to exempt from taxation the real property of the surviving spouse of certain emergency services providers;
  5. Subgroup Assignments – assigned everyone to their first or second choice;
  6. Updated Contact List; and
  7. Declaration of Personal Interest form – needs to be completed by any Working Group members who are participating in, or are eligible to participate in, the Real Estate Tax Relief Program. Working Group members who fall into this category must also identify themselves as such at the beginning of each meeting. This eliminates any apparent conflict of interest by being transparent, but does not prevent anyone from participating in discussions or votes.
  8. Attendees introduced themselves, with Ms. Day, Ms. Herndon, and Ms. Juhl identifying themselves as participants in the Real Estate Tax Relief Program.
  9. Approval of October 3, 2016 Meeting Minutes
  10. Ms. Juhl proposed two changes to the October 3, 2016 meeting minutes:
  11. In Section IV.a.i.4, change to read that although Virginia state code specifically prohibits instituting any sort of length of residency requirement, section 43-4.A of Arlington County Code Chapter 43 does require that the title of the property is held, or partially held, on January 1 of the taxable year for which exemption and/or deferral is being claimed.
  12. In Section IV.a.ii.5, change to indicate that advertisements for the RETR Program are already sent out with assessments.
  13. Ms. Juhl also made two additional points:
  14. Section 43-4.C of the Arlington County Code Chapter 43 specifies that income limits shall be adjusted annually, but have not been adjusted for quite some time.
  15. The Arlington County Code Chapter 43 references net worth, so why isn’t Arlington deducting certain liabilities from participants’ assets?
  16. Ms. Hutchison said that she will send copies of the relevant Virginia Code to the Working Group.
  17. Ms. Sullivan moved to approve the amended October 3, 2016 meeting minutes, and Ms.Herndon seconded the motion.
  18. The amended October 3, 2016 meeting minutes were unanimously approved by the Working Group.
  1. Mission Moment – Kim Rucker
  2. Ms. Rucker, the County’s Chief Deputy Treasurer, discussed her experience working with the RETR Program.
  3. She explained that the Treasurer’s Office deals primarily with hardship cases, which often include ownership issues:
  4. For example, if a couple owns a home and then one passes away, the home needs to be re-deeded, and this has to happen before the surviving spouse can receive tax relief.
  5. Another example involved siblings who co-owned home; when one sibling passed away without a will, it was unclear who the heirs were. Then, when a handwritten will was discovered, the Treasurer’s Office worked with DHS and a local attorney to file it.
  6. Issues can take years to resolve; the Treasurer’s Office will often put owners on payment plans while awaiting resolution, but in the meantime there may be one or more years of unpaid taxes that accrue.
  7. The RETR Program doesn’t currently have a mechanism for providing retroactive relief.
  8. Ms. Rucker and Ms. de la Pava, the County’s Treasurer, explained that they don’t support providing retroactive relief in all situations, but do feel it would be appropriate in situations where there is real hardship, especially when people are dealing with a loss.
  9. Other examples in which the Treasurer’s Office gets involved is when longtime RETR participants forget to apply for RETR for some reason. There was a homeowner who had participated in the RETR Program since 2007, for example, who forgot to apply due to a traumatic brain injury.
  10. In situations such as this, a later deadline would be advantageous, since it would make it easier for the Treasurer’s Office to catch those past participants who didn’t reapply but should have.
  11. Ms. Friedman pointed out that DHS is in the process of working with the County Attorney to develop a process for considering extensions in situations where a mental or physical impairment prevented the participant from applying on time.
  12. One attendee asked about a situation discussed in a previous RETR meeting: if a parent passed away and previously received a deferral, but had a dependent adult child living with them and wanted them to remain in the family home after their death, what would the Treasurer’s Office do about the amount owed due to the deferral (assuming the dependent adult child couldn’t pay it back when the home was transferred to them). Ms. Rucker explained that they could set up a payment plan or a life estate of some sort.
  13. One attendee asked how many “challenging cases” the Treasurer’s Office sees each year. Ms. Rucker reported that there are a few each year.
  14. One attendee asked how many homeowners who are delinquent on their taxes might be helped by RETR. Ms. Rucker explained that it’s hard to know for sure, but the Treasurer’s Office reaches out to everyone who is delinquent, by mail and/or by telephone.
  15. One attendee commended the Treasurer’s Office for their help in working with her bank when the bank refused to accept her deferral because a deferral establishes a lien on a home that takes priority over the mortgage when a house is sold. Ms. de la Pava explained that she called the bank and asked them to consider revising their policy on deferrals, especially in light of Arlington’s robust real estate market. Eventually the bank allowed the homeowner to manage their own taxes, so long as the Treasurer periodically provides the bank with a letter stating that the homeowner is in good standing with her taxes.
  1. Community Meeting
  2. Ms. Sullivanbriefly discussed the RETR Community Meeting:
  3. Given the holiday season and Inauguration, the Working Group will aim to schedule the meeting for the week of January 23, 2017.
  4. The Working Group should think about the best location; somewhere other than the Department of Human Services, metro-accessible, and available free of charge. Possibilities include Central Library, George Mason, and NRECA.
  1. Real Estate Tax Relief Subgroups – Breakout Sessions

The members of the Working Group met in their three Subgroups (Outreach and Application Process, Eligibility Criteria, and Program Alternatives) to work on developing recommendations.

  1. Adjournment

The meeting concluded at 8:05 p.m.

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