Coming soon: House values re-assessed

In the near future all Hamtramck properties will be re-assessed.

By Charles Sercombe
Since the 1960s it appears there has never been a citywide re-assessment of Hamtramck property values.
There have been new assessments given as housing values fell and rose and improvements were made here and there.
But a comprehensive, street-by-street, study of each house has not been done.
It’ something city officials have talked about doing for the last three years.
But now the city will begin to move forward, said City Manager Katrina Powell. Just when the task will begin remains unknown.
Powell, who now speaks for all department heads when there are media inquiries — unless they are given specific permission to respond — says Assessor Jay Singh is taking the first steps toward a re-assessment.
Singh was given permission to answer questions posed by The Review.
He said there have been no re-assessments made yet, but the first ones he will look at are those houses and businesses that pulled construction permits within the last year.
At this point, he said, it’s too early to tell whether overall assessment values will go up or down. As for who will conduct the job of a citywide re-assessment, Singh said it will either be contracted out or additional staff will be hired.
One oddity that has been found, said Powell, is that some properties have not been assessed at all, possibly meaning they are not even paying taxes.
“It’s astonishing to me actually,” Powell said.
While The Review was unable to talk directly to Singh, former city Assessor Tony Fuoco said it’s unlikely that re-assessed house values will increase overall. He said that since most of the houses sit on 30-foot lots there is little room for expansion.
“How much could you do?” Fuoco said.
Generally speaking, when an addition is made to a house, its value increases.
About three years ago Fuoco proposed to re-assess the entire city for $80,000, which would have been completed in two years. However, city officials balked at the price and even feared that the re-assessment would result in lower house values and subsequently a significant drop in property tax collection.
Fuoco argued that the city was way past due according to state law, which requires a citywide re-assessment every five years. Fuoco also argued that since it is likely assessed values decreased, homeowners have a right to know.
“Shouldn’t everything be assessed fairly?” Fuoco said.
Following the housing market crash in 2008, housing values have climbed back up, not to the pre-2008 level, but up nonetheless.
City Councilmember Robert Zwolak admitted he was against a re-assessment a few years ago because he thought the city would end up losing tax revenue, but he is now comfortable with a re-assessment.
“We’re rebounding significantly,” Zwolak said.