Real Estate – Page 4 – Truxton Is In Shaw

Affordable Chapman Stables?

Screen Capture of http://opendata.dc.gov/ data set of Affordable Housing

I started searching because the Open Data DC.gov site has a map so you can find affordable housing projects in the District. So I went to the side and drilled down to Truxton Circle.

So I saw Chapman Stables was in there and there are supposed to be 11 affordable unit of the 100 plus units. Six units are at 31%-50% AMI and 5 units at 61%-80% AMI.

But then I wondered. Wait. Condos have condo fees. These fees can start off reasonable and then if something happens creep or jump up. Then I wondered what do these affordable units look like? Are they segregated from the other units, like some apartment buildings?

So I went a looking at the DC property sales database to look at what sold below the $300K advertized basement price. This is public information, but I’m not going to use names or unit numbers. I found 5 units, they are not all on the same level, and they are not all studios. The first was sold on October 9th for $237,400 is a corner two bedroom unit. I noticed several of these affordable units share a wall with some common space things, like stairwells. Three units were sold for $114,600 in 2018. Two of those are one bedrooms and one is a studio. The one bedrooms share a wall with a common space thing and the studio is well, a studio. And lastly a one bedroom unit sold for $214,300.00 on October 16, 2018, and it only shares walls with other units.

The monthly condo fee for a one bedroom is $362. The fee for a typical studio is less than $300, and for a two bedroom in the $600 range. Remember kids, the condo fee is in addition to the mortgage and real estate taxes. I don’t know if the buyers of the affordable units get to pay a reduced fee or must pay the same rate as the market rate buyers, because everyone must contribute to the maintenance, trash, and all that other good stuff.

Also, let’s look at the categories of 31% to 50% AMI and 61% to 80% AMI. This is more about the buyer of the unit than the unit. Six units are for 31-50% AMI. According to the Department of Housing and Community Development’s chart that’s an income ceiling of $41,000 for a single person and $46,900 for a household of two. On the off chance the two bedroom was available for this category, a household of four’s limit is $58,600. There is nothing for the 51-60% AMI group. Five units were set aside for the 61-80% AMI group and the ceilings are $65,650, $75,000, $84,400 and $93,750 for households of one, two, three and four persons.

There is another condo in Truxton that is not yet completed, which has just 2 affordable units for 61-80% AMI, and that is Compass’ Five Points Flats. I have no clue as to what the condo fees for this thing will be.

It is easy for me to imagine single teachers, non-profit workers, civil servants, or savvy retirees, being able to fit into these income categories AND keep up with the HOA/condo fees. What I cannot see is how people who are in those AMI groups find out the availability and price of these units. As I see with Chapman Stables, they did manage to find those units.

Church spot gone condo: Scripture Cathedral

Looking at the 1957 Northwest Church Survey, Scripture Cathedral did not exist. It would have been at 9th and O Streets Northwest. But the only thing on that block was a storefront church called Christ’s United Baptist Church at 1329 9th St NW, now an outreach center. So historically, in my opinion, this means it can’t claim a rich history with the neighborhood. And I don’t feel like researching it to see if this was a post riot church. Looking at the website for Scripture Cathedral, currently in PG County, they don’t provide a useful history, or details.

The website for the condo building replacing it has plenty of details about the condos, ranging from $600K to $2 million.

The usual narrative would be Black church replaced by rich (let’s just assume) white condo owners, and then we are supposed to feel bad about losing people who park poorly in the neighborhood. Instead let’s go with ‘yay, new neighbors who may be overpaying for their home.’ Seriously, people still get shot a block or so away on 7th Street, and they can come home from the Mt. Vernon metro assaulted by the smell of K2 in the air.

Looking at the whole volume of the October 1957 Northwest Church Survey, there are plenty of churches that no longer exist. Churches that may have left because they ended their normal church lifecycle. Churches that picked up and moved before and after the riots, and before and after ‘gentrification.’ Neighborhoods change.

319 R Street the plan

Okey dokey. The fugly, and I’m gonna call it fugly, ’cause it was a plan of ugly of freaking magnitude, plan of replacing the top level of 319 R St NW with a meh 3rd floor and an out of proportion dunce hat is no more. The Historic Landmark application, killed that.

So the developers played chicken, lost and looks like they’re gonna try to recoup their money by selling it, unimproved, for $1.05 million. Unimproved. I don’t think the plans are worth hundreds of thousands of dollars. But that’s just my opinion.

So what’s the plan? Go down.

There will be three floors but you’ll have to go down, into the basement. Have they dug the basement? I don’t think so, so there is no guarantee of anything. If they haven’t, you could hit water. Anywho. The top floor is a rooftop deck of sorts, because you can’t change the top anymore. Because of historic stuff. If they just left the damned turret alone, like 210 P Street NW, they would have had more freedom to put on a 3rd floor.

210 P St NW Open House — Turret on 210 P St NW.

But, noooooo. They had to plan to destroy the original turret or threaten to tear down the building. Now they expect someone to pay over a million dollars for the mess they made.

319 R St NW

I ran into a neighbor who apparently went to the last BACA meeting. I stayed home because of a sick kid. He’s fine now, thanks for asking. Anyway, she informed me of what is going on with 319 R Street NW.

For those of you new to the story, here is the Cliff Notes version of the 319 R Street NW saga. The property was sold by a Korean Presbyterian church to a developer. The developer wanted to chop off the roof and turret and make a fugly building. There was some pushback by neighbors and the developers threatened to demolish the building as a matter of right. The developers, and other people, forgot that 319 was on a block built by celebrated developer Harry Wardman and a majority of the structures on the block were Harry Wardman originals. When it looked like the developers were going to be able to get their fugly building with a dunce hat of a turret, someone submitted a historic landmark application for the whole damned block. The submission and the approval meant no changes could be made, so no ugly 3rd floor or dunce hat, but unfortunately a bunch of innocent homeowners got caught up in it like dolphins in a tuna net.

Anyway……

The developers got permits to make changes (but not the fugly building) and plan to sell 319 R with the approved permits. They played chicken and they lost. Depending on how much they sell the building, a talented developer like Ditto could turn it into a two unit, million+ property.

Some DC Homeowner Tax Hacks

Yes, I know it is a click-baity title but bear with me, I got some good stuff.

1- Get your property taxes deferred. Single? Do you make less than $50K a year? Then you may be able to get a deferment. Unfortunately this doesn’t look like the same deferment I had. Those were 5 wonderful years of not paying any property tax, then one year, I made about $500 too much, and that was the end of that. It looks like you fill out the second (1st half is for old people) part of form FP-110.

2- Are you 65 years or older OR do you receive SSDI? Pay less on your property taxes than those suckers with just a Homestead Deduction. Go to the forms page, fill out FP-100.

3- Did you for some odd reason not take the $5000 if you bought during or before 2011, the 1st time homeowner tax credit? Really? That was just free money. Since there can’t be too many people that qualify for this, I’m going to move on.

4- Do you make $20K or less? You don’t have to be a homeowner for this, renters can qualify. On your DC state income tax, fill out Schedule H, you’ll get a credit.

Should Your Property Taxes Go Up 50%+ a Year? Because, Racism

Once upon a time in DC parts of the city experienced gentrification. Homeowners who had lived in the city through the crack years, the control board, or got in before the house prices went to crazy town began to experience unpleasant surprises year after year. Say their home that they may have bought for $75K was being assessed at $100K one year, then about $300K the next when the owners did not do any improvements to their home. I remember neighbors who bought their home for something around $200K , later got an assessment of $500K. Of course, people freaked the hell out, because their property taxes kept jumping up and up, near 50%. Some going from several hundred one year to several thousand dollars a few years later. If you’re a lower or low middle income homeowner, this is a very good reason to freak the hell out.

A tool to stop the freaking out and accusations that the city was trying to push out long time homeowners with high property taxes was the 10% cap. A DC homeowner’s taxes cannot go higher than 10% each year, regardless of how much the city thinks their house is worth.

So the DC Policy Center is saying the 10% cap is wrong and possibly racist. It seems to defy logic. They attacked the homestead deduction and failed to show how these things directly related to racism.

There also is some misleading language. In DC there is a homestead deduction, in some other places such a thing is called a homestead exemption, usually it’s a discount off the full tax bill for resident homeowners. Exemption does not mean no taxes are paid, the report seems to hint that it is in not being clear. Another word, “elude” or “eludes”, which according the the dictionary means, “evade or escape from (a danger, enemy, or pursuer), typically in a skillful or cunning way; (of an idea or fact) fail to be grasped or remembered by (someone); (of an achievement, or something desired or pursued) fail to be attained by (someone).”. The claim, “Home ownership and the wealth associated with it eludes communities of color, ” irritated me. I totally acknowledge home ownership is challenging, but DC is frickin’ filled with opportunities for those who are first time home owners that other places don’t have, so much that it is worth another post to go through them.

Will Buy Your House For CA$H

It was something from a DCist post about the Hillcrest neighborhood I noticed. It seems the people of Hillcrest have been peppered with offers to sell their homes to developers. If those offers come in the form of post cards and yellow letters like the ones below, they aren’t special. I get these offers almost every week. Sometimes I get phone calls.

I have two rentals, bought for the price of a new car, in addition to our primary home. So every week, I will get some letter or postcard asking if I want to sell. These things are called yellow letters. Note, they are yellow. They come from people looking to buy houses for developer investors. Most are not a scam, but they aren’t going to offer you the amount of money you’d probably get if you were to sell with a Realtor. They are for people who want to sell a house quickly without doing anything (fixing things).

I don’t feel pestered by these mail in inquires. They are like any other service being offered that I don’t want. Don’t want a credit card. Don’t want your cable package. When it is an offer on my primary residence, I do feel slightly insulted, because, yes, the outside could use some sprucing up. I think they figured I’d want to sell because I haven’t gotten to fixing some things. Those things are on the 2019 docket of expensive house crap to do. I replaced the roof this year so the 2018 budget is blown.

So say you’ve gotten several of these yellow letters, what do you do? Are they serious offers? Well if you have no desire to sell, toss them in recycling and give it nary a thought. If you’re thinking about selling, but you want top dollar and you have time and are willing to repair and repaint, toss them in the recycling bin and hire a Realtor. But if you just want to get rid of it (bad tenants, repairs you can’t afford, desperately need to fund your mother in law’s stay in a nursing home) sure give the number on the letter or post card you got a call. Just be aware you’re going to be offered a price below market. It doesn’t matter that the house next door to you sold for a million dollars, the people offering to buy your house are not going to offer a million dollars.

Death and Taxes – In Shaw – Mari in the Citi

Back in 2013 I wrote about my dead Aunt G. who despite being very dead was still getting the Senior Citizen Homestead Deduction. I chose not to out my dead aunt because I wanted to give whomever I was related to enough time to probate the will and get auntie’s estate all straightened out. I figured I’d wait 5 years after her death for her estate to clear everything up, but due to a few things that have happened I’m gonna have to air this out earlier than planned.
I’d been keeping the voice mail where one of my relatives informed me of Aunt Geraldine’s death back in January of 2012. Well apparently voice mails have a shelf life and somehow it did not get saved in a backup. It was my reminder when looking at my list of voicemails to every so often to check and see if she was listed as the owner of her house in SE.
And recently I was speaking with another relative about the situation. I mentioned that the property was still in Aunt Geraldine’s name and the relative mentioned that her will was probated sometime ago.
I’ve held off long enough.
Uncle Randolph (pictured sitting on the right) has been dead since the late 80s
and after his death, her health went south. Her last years were spent in a nursing home somewhere in Maryland. She hadn’t lived in the house since the mid to late 2000s.
Before her death, she paid $570, and $635 in property taxes in 2010 and 2011. She died January 13, 2012, that year she paid $925 in property taxes, but they went down in 2013 to $799, $786 in 2014, and $865 in 2015. This year it appears her tax bill is $626. The house is valued by the city to be worth $220,810 (2016 assessment), but despite being very dead she (or whomever is running her estate) is getting the benefit of her (and my late uncle’s) tenure in the house, with the 10% cap on how high taxes can go up and double bonus points of the Senior Citizen Homestead Deduction.
It is great that DC has the deduction for seniors. However, the city does a poor job of checking up on seniors to see if they are still alive and kicking. I can’t judge them too harshly with Aunt Geraldine because she still does not appear in the Social Security Death Index. However, she’s not the only dead person in DC paying real property taxes with the Senior Citizen Homestead Deduction.
Mrs. Geraldine Lewis is very dead, laid to rest in a Maryland grave and should be free of the burden of taxes.

The Last Roommate

The Last Roommate By Mari on August 30, 2010 1:45 PM

Well this weekend my last roommate moved in. After the Help and I get hitched (when he actually has a legal right to all that equity I’ve built up) he’ll move in and I’ll no longer be renting out the extra room. This house is way too small for 3 adults. So in thinking about 9 years worth of roommates and the whole renting your room out, here’s what I’ve learned:

Let the market determine the rent- not your mortgage

I think I charged by first roommate Belinda $500 in 2001. I can’t remember if I included utilities. I probably did. My mortgage was a little below $600. This was pre-renovation. I had the kitchen counter-space of a Ouija board and crappy cheap carpet. I also had active drug traffic on my corner and back then Cindy the Crackho was actively working (now it seems she’s retired) so I couldn’t really demand a high rent. But neither was I going to charge ½ of my mortgage, I had to make it worth my privacy. Then came the kitchen renovation and the whole house renovations and the second mortgages that followed. The kitchen renovation had no impact on what I was charging for rent as it had no impact on having drug dealers on the corner. Strangely, neither does having a new kitchen reduce gunfire heard at night, which really allowed for raising the rent. (more after the jump)

I did increase the rent from the $500-$550 range to $700 and above after the huge renovation in 2007 when my mortgage total went into the land of $1600 a month. I was charging less than ½ my mortgage and including utilities. In 2007-08 a renovation at that time made sense. The drug dealers were decreasing their hours. Other houses on the street were getting renovated so I wouldn’t be overbuilding, and I was finally making enough money to support a bigger second mortgage. After the renovation, I checked Craigslist and the City Paper to get a sense of what to charge for a room. Then I would post an ad for a certain amount and depending on if I got any real bites, I found out if I was asking too much.

Do a thorough interview and follow up on references

One reason I hear people say no to roommates is that they’ve had a bad experience with a past roommate. Of my worst roommates since leaving my parents home they’ve been people I didn’t choose (dorm situations) . It helps to pick people based on something in addition to their ability to pay rent on time. I’ve always required references and I interview those references, over the phone, before offering the room. I demand an in-person interview with the applicant. In the beginning it was to make sure the person was ok with the neighborhood. It was also to make sure they were the kind of person I could get on well enough with for the next 3 to 6 months. Yes, even though I do short term rentals I did the big interview, check your references, confirm employment dance.

The questions I would ask references were roommate, temperament questions. How are they about cleaning up behind themselves? Does So-in-So smoke? How does s/he handle conflict when a problem arises? Would you describe So-in-So as dependable/responsible? And general descriptions of the person. These interviews have been helpful in adjusting how I related to the roommate and made me aware of things I’d have to be sensitive to as well. And I made sure they were not all email references and I called the employer (or former employer in some cases.)

Know your market, know yourself

As I mentioned, I do short term rentals. Mainly because I get bored with people and sometimes I just want my house back. That was the know yourself part. So, who would I rent to? Well in the summer there are interns. I’ve had a law firm intern, and international org intern, and some educational non-profit intern. Because of all the non-profit think tanks and other research institutions there are also fellows, who are like interns, but older and definitely paid better. Some fellows I got from friends who were searching for housing for their research fellows who were going to be in DC for 4-6 months. Other types of people who needed the short term stays were people who were hired on a trial basis, a commuter and someone here for a short detail at the home agency.

My preferred roommate was someone with a life elsewhere. My commuter, lived with her partner on weekends. The person on detail had an apartment back on the west coast she was returning to. The law intern was a homeowner in Philly. And to accommodate them I would provide a furnished room, and provide kitchen wares so all they had to bring was their suitcase.

Ect

Sometime this year I contacted DCRA about the legality of renting out my extra bedroom and was told by Michael Rupert, Communications Manager, that I could have up to 5 unrelated people living together in a home – as long as they share kitchen and living spaces – without having to get any license and it’s perfectly ok in terms of zoning regulations.

I also reported the income on my taxes taking out the expenses associated (utilities, the odd time I paid the WP for an ad) and it has been good income. If you pick the right roommate (lives elsewhere on weekends, workaholic, never cooks) it can be the easiest $600-$700 bucks a month.

Do a thorough interview and follow up on references

Know your market, know yourself

Ect

Fugly Pop-ups for Sale

I have a theory, ugly is a big enough negative to negate any investment in increasing square footage. The reason behind my theory is that the ugly 2000 sq ft house is competing against the nicer looking 2000 sq ft house, not the surrounding nicer looking 1000 sq ft houses. There are two examples.

First is 26 P St NE. If you notice on the Redfin site the complete ugly of it is not revealed. I noticed the exterior photo stops so you don’t really see the 3 story popup that the builders threw up on it. The asking price is $799K. I say it is worth $400K on a good day and that’s just thinking about how much it is going to cost to hire an architect who can design something that can redeem the property. This has been on the market for nearly a month. I’m guessing it’s going to be a long time and several price reductions before this monstrosity sells.

Is next, and the best proof of my theory, 1522 3rd St. NW.

This puppy has been pretty empty of real tenants for years. That pop up has been on top of that house for at least 3 years if not more. Check out the link above and scroll down to the property history and the number of times it was bought and sold over and over again. It looks fishy, but that’s the bank’s problem. As I can remember it was never sold to real people, just investors. Also not how the price keeps going down. It began as $349K, then delisted and relisted at $335K, and since then has been slowly going down and is now at $245K.

Let me say that the 1500 block of 3rd St is awesome, minus the feral children at the corner of Bates and 3rd. There are a great set of involved neighbors and somewhere over there I think is where ANC Anita Bonds resides. If the house gets down to say $220K, buy it, redo the popup (move it to the rear, turn it into a covered roof deck, tear it off) and if you plan to stick around for 5-7 years it would be totally worth it.