| Property address | Current county valuation | Taxpayer proposed valuation | Disputed amount | Percent difference in current proposed vs. county valuation | Percent difference in original proposed vs. county valuation |
|---|---|---|---|---|---|
| 8031 8317 Mount Everest | $3,800,640 | Withdrawn | -59% | ||
| 5201 Taylorsville Rd | $316,160 | $254,000 | -$62,160 | -20% | -78% |
| 5602 5628 Troy Villa Blvd | $1,011,600 | $943,000 | -$68,600 | -7% | -63% |
| 5550 Huber Rd (Company headquarters) | $973,700 | $614,000 | -$359,700 | -37% | -87% |
| 5602 5728 Troy Villa Blvd | $1,256,210 | $1,034,000 | -$222,210 | -18% | -70% |
| 5722 5728 Troy Villa Blvd | $134,780 | $130,000 | -$4,780 | -4% | -61% |
| 5550 Taylorsville Rd | $2,151,520 | $1,312,700 | -$838,820 | -39% | -81% |
| Total for 6 amended cases | $5,843,970 | $4,287,700 | -$1,556,270 | -27% | -76% |
| Overview of all cases | |||||
| Total open appeals - 484 | $49,759,000 | $39,265,510 | -$10,493,490 | -21% | n/a |
| Total original appeals - 818* | $91,329,500 | $45,970,946 | -$45,358,554 | n/a | -50% |
| *Company later withdrew 258 and amended others. County has decided 76. | |||||
| Source: Montgomery County Auditor | |||||
An Illinois hedge fund that bought 1,900 rental units — mostly in Huber Heights — slightly scaled back its request for property tax relief during appeals hearings held this week, but that did not ease fears about the scope of the company’s request.
“I am taken aback at the possibilities of negative consequences that will likely occur now that the Huber real estate is now owned by an out-of-town investment fund,” said Steve Naas, president of County Corp, a nonprofit housing and economic development corporation in Montgomery County.
The Montgomery County Board of Revision on Monday heard the final seven of the original 818 requests for property revaluation sought by Magnetar Capital LLC of Evanston, Ill.
Funds managed by Magnetar are the main investors in the January purchase of Huber Investment Corp. and related companies owned by Teresa Huber. The terms of the sale were confidential, but documents filed in February with the U.S. Securities and Exchange Commission show Magnetar raised $71 million in a private placement for Huber Funding LLC. Magnetar operates the new company as Huber Home Rentals.
On Monday, the company withdrew its request that the county cut in half the value of a $3.8 million apartment complex on Mt. Everest Street in Huber Heights.
The company also asked that six properties be reduced in value by nearly 27 percent percent to $4.3 million. It had originally sought a 76 percent reduction on those six properties, which include the 5550 Huber Road corporate headquarters. After initially asking for an 87 percent value reduction on the headquarters, the company now seeks a 37 percent cut to $359,700.
The company had already withdrawn or amended hundreds of cases that were originally filed in March, when it asked the county to cut in half the valuation of property the county valued at $91.3 million. Montgomery County Auditor Karl Keith said the original 818 appeals covered most or all of the 1,580 units the company owns in Montgomery County.
The board of revision last week ruled on 76 cases — reducing them in value by 49 percent. That leaves decisions pending on the remaining 484 open appeals, for which the company now seeks a 21 percent reduction in valuation to nearly $39.3 million.
If approved, the appeals would cut the company’s property taxes and would require the return of as much as $524,668 in 2012 tax revenues already paid to Huber Heights Schools, the city, Sinclair Community College, human services agencies and Dayton Metro Library. After that one-time loss, the law requires that the auditor adjust tax rates countywide and spread the burden of Magnetar’s tax cut to all taxpayers, Keith said.
Huber Heights officials have decried the proposal, which will hit the school district hardest, saying they cannot afford additional lost funding in a time when they are taking revenue hits from all sides.
There also is concern about a larger effect if Huber Homes Rentals — now the third largest non-governmental property owner in the county — succeeds in cutting the valuation of its property. Naas said his research shows the Magnetar properties are valued at close to the market value of neighboring properties.
“What may happen is other property owners will pursue a reduction if Magnetar is successful. The domino effect would be devastating,” Naas said.
In an interview last week, Magnetar Chief Operating Officer Mike Carter said property owners have a right to seek an accurate valuation for property. The company plans to spend $2 million by the end of 2014 to upgrade the properties and will improve them at “approximately three times the pace of the prior ownership,” said company spokeswoman Melinda McMullen.
“A pledge by the company to invest a total of over $2 million into these 1,900 units in a two-year period is less than impressive, equating to just about $1,000 per unit,” Naas said. “Imagine what kind of improvements you can do to a home for $1,000. Not much.”
Dan Bathon Jr., chief executive of Huber Home Rentals and VineBrook Homes Ohio, said it is “miscounting” to apply the $2 million to all 1,900 properties.
“It’s not going to be applied to 1,900 properties,” Bathon said. “It’s going to be applied to 300-400 properties. It’s substantial.”
VineBrook Homes of Ohio is an investor and manages the properties located in Huber Heights, Trotwood, Miamisburg, Columbus, Cincinnati, Indianapolis and Atlanta.
“As a long-term investment these are short-term actions that will lead to very long-term improvements in the community,” Bathon said.
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