Assessment Review Board / Commission de révision de l’évaluation foncière
ISSUE DATE: May 15, 2020 FILE NO.: WR 164443
Assessed Person(s): Matthew Joseph Vasselin and Nicole Robin Jenkins Appellant(s): Matthew Vasselin and Nicole Jenkins Respondent(s): Municipal Property Assessment Corporation Region 19 Respondent(s): City of Hamilton Property Location(s): 189 Locke Street North Municipality(ies): City of Hamilton Roll Number(s): 2518-010-104-00702-0000 Appeal Number(s): 3384572 and 3408188 Taxation Year(s): 2019 and 2020 Hearing Event No.: 729784 Legislative Authority: Section 40 of the Assessment Act, R.S.O. 1990, c. A.31
| Parties | Representative |
|---|---|
| Matthew Vasselin and Nicole Jenkins | Matthew Vasselin |
| Municipal Property Assessment Corporation | Tim Oberle |
| City of Hamilton | No one appeared |
HEARD: March 24, 2020 by telephone conference call
ADJUDICATOR(S): Anthony LaRegina, Member
DECISION
OVERVIEW
1Matthew Vasselin and Nicole Jenkins (the “Appellants”) filed an appeal for the 2019 taxation year with the Assessment Review Board (the “Board”). It is the Appellants’ position that the Municipal Property Assessment Corporation’s (“MPAC”) current value assessment (“CVA”) of $542,000 is too high. Pursuant to s. 40(26) of the Assessment Act, R.S.O. 1990, c. A.31 (the “Act”), the Appellants are deemed to have brought the same appeal in respect of the 2020 taxation year. MPAC returned a CVA of $547,000 for the 2020 taxation year. The Appellants have taken the position that the assessed value of the subject property should be reduced to $400,000. At this hearing, MPAC takes the position that the CVA should be confirmed.
Background
2Tim Oberle, the assessor for MPAC, provided the Board with an estimate of current value at $691,000 based on the time adjusted sale values of the comparable properties in evidence. Mr. Oberle further submits that the current value requires no further adjustment in order to make it equitable with the assessment of similar properties in the vicinity. Mr. Oberle submits that MPAC is not seeking an increase in assessment and therefore requests that the assessment be confirmed at $542,000.
3Mr. Vasselin submits that he overpaid for the subject property when he purchased it December 15, 2017 for $650,000. He submits, that based on the comparable property sales and their assessed values that he has presented in evidence, the market value of his property should be $400,000 as of January 2016.
4As part of the preliminary matters, Mr. Vasselin submitted that he was disappointed that MPAC sent him its evidence package only one week before the hearing. When given the option to have additional time to prepare Mr. Vasselin declined and wanted to proceed with the hearing.
Issues for the Hearing
5The issues to be determined are:
- the correct current value of the subject property for the 2019 taxation year; and,
- is the current value equitable with the assessments of similar lands in the vicinity?
Result
6The Board finds the correct current value of the subject property for the 2019 taxation year is $608,000.
7The Board determines that the current value requires no further adjustment in order to make the assessment of the subject property equitable with the assessments of similar lands in the vicinity.
8The Board confirms the assessed value of $542,000 for the 2019 taxation year.
ANALYSIS
Description of the Subject Property
9The subject property is a residential single-family detached property located at 189 Locke Street North in the City of Hamilton. The subject property has a total building area of 2,371 square feet with 671 square feet on the first floor, 862 square feet on the second floor, 838 square feet on the third or upper floor and the basement has 744 square feet with no finished space. The structure also has an attached double garage with 266 square feet. The lot has an effective frontage of 25 feet and an effective depth of 101.34 feet resulting in an effective site area of 2,533.46 square feet or 0.06 acres. The home was built in 2017 and was purchased by the current owners December 15, 2017. The property has a returned value of $542,000 for the 2019 taxation year, based on a January 1, 2016 valuation day.
Issue 1 – Current Value
10In accordance with s. 44(3)(a) of the Act, the first mandate of the Board is to determine “the current value of the land”. Section 1 of the Act defines current value as “the amount of money the fee simple, if unencumbered, would realize if sold at arm’s length by a willing seller to a willing buyer”.
11For the 2019 taxation year, the Board must determine what the subject property would have sold for in an arm’s length transaction on the January 1, 2016 valuation day set by s. 19.2(1) of the Act.
12MPAC introduced eight proposed comparable sales of properties that sold in the same vicinity as the subject property (See Attachment 1 – MPAC’s Property and Sales Information).
13The eight property sales have similar lot sizes, building area, quality levels and are all single-family detached properties. MPAC adjusted each comparable property sale amount for time, number of bathrooms, garage, abutting industrial, abutting multi-residential, and for having a pool. The adjusted sale range per square foot for the eight comparable properties is between $224.11 and $321.51 with a median value of $291.55 and a mean value of 287.57. Applying the median value per square foot of $291.55 to the 2,371 square foot area of the subject property MPAC calculated the current value of the subject property to be $691,265 rounded to $691,000.
14MPAC also produced the sale of the subject property which sold for $650,000 December 15, 2017 arguing that the sale of the subject property further corroborates the current value of $691,000 based on sales of similar properties in the vicinity.
15The Appellants introduced four proposed comparable property sales in support of current value all of which are in the vicinity of the subject property. They are as follows:
Appellants’ Proposed Comparable Properties and Sales Information
| Property Address | 189 Locke St N (Subject) | 95 Inchbury Street | 87 Inchbury Street | 63 Crooks Street | 138 Inchbury Street |
|---|---|---|---|---|---|
| CVA | 542,000 | 352,000 | 345,000 | 497,000 | 382,000 |
| Sale Date | March 2020 | July 2019 | Feb 2019 | July 2019 | |
| Sale Value ($) | 650,000 | 730,000 | 800,000 | 715,000 | |
| Building Area (sq. ft.) | 2,371 | 1,537 | 1,793 | 1,959 | 1,950 |
| Eff. Site Area (sq. ft.) | 2,533 | 3,750 | 2,953 | 3,616 | |
| Year Built | 2017 | 1993 | 1876 | 1998 | 1885 |
| Quality | 6.5 | 6.0 | 6.0 | 6.5 C Reno 2017 | 6.0 |
16Mr. Vasselin submitted that these four properties are very similar to the subject property and therefore the current value of the subject property should be around $400,000 which is reflective of the assessed values of these four properties.
17During cross-examination Mr. Vasselin admitted that he made no time adjustment to the comparable properties for date of sale in relation to the January 1, 2016 valuation day or any other adjustments in relation to abutments, year built, etc.
18Mr. Vasselin requests the Board find the current value to be $400,000 for the 2019 taxation year.
Findings on Issue 1 – Current Value
19The Board has analysed the four proposed comparable sales submitted by the Appellants and concludes that these properties sold in 2019 and 2020 and therefore, without time adjustments bringing the sale values back to a January 1, 2016 valuation day, which was not presented as evidence, the Board considers these sales too far removed from the valuation day to establish the current value of the subject property. Furthermore, these four properties were built between 1876 and 1993 while the subject property was built in 2017; and the building areas range between 1,537 and 1,959 square feet while the subject property has a larger building area of 2,371 square feet. Based on these points of comparison, the Board does not consider the Appellants’ proposed comparable properties sufficiently similar to the subject property for the purposes of establishing the current value of the subject property.
20The Board has also analysed the eight comparable properties submitted by MPAC as well as MPAC’s approach to establishing the current value of the subject property, and the Board concludes that the best comparable property sales submitted by MPAC are Property 1, 54 Melbourne Street and Property 8, 340 Herkimer Street. These two properties are the two newest built in 2015 and 2014 and the building areas of these two are the largest at 2,175 and 2,875 square feet respectively. Since the subject property was built in 2017 and has a building area of 2,371 square feet, the Board finds that MPAC’s Properties 1 and 8 are the most similar and therefore the best comparable properties to establish the current value of the subject property.
21The adjusted sale values per square foot for both 54 Melbourne Street and 340 Herkimer Street are $288.94 and $224.11. Applying the average of these two values of $256.52 per square foot to the building area of the subject property of 2,371 square feet results in a current value of $608,221, rounded to $608,000 for the subject property.
22Based on the best available evidence, the subject property would have most likely sold for $608,000 on January 1, 2016, which is further supported by the Appellants’ purchase price of $650,000 in December 2017 considering the increased market values over time.
23The Board finds the correct current value of the subject property to be $608,000.
Issue 2 – Equity
24Section 44(3)(b) directs that, after determining current value, the Board shall have reference to the value at which similar lands in the vicinity are assessed and “adjust the assessment of the land to make it equitable with that of similar lands in the vicinity if such an adjustment would result in a reduction of the assessment of the land”.
25The Assessment to Sales Ratio (“ASR”) of a sample of sold properties is a tool often used to determine if a property in the vicinity is assessed below its current value. If any other property is assessed below its current value, a reduction in the assessment below current value is required to make the assessment equitable with the assessments of similar lands in the vicinity. The ASR is determined by comparing the assessment as returned to the time adjusted sale price, expressed as a mathematical ratio.
26MPAC presented an equity analysis of 13 property sales of detached residential properties that occurred from January 1, 2015 to December 31, 2016, located within 0.30 kilometres of the subject property, resulting in a median ASR of 0.976. Mr. Oberle submits that MPAC’s standards indicate that for residential property, the median ASR should fall between 0.95 and 1.05. If the median ratio falls within this range, this reveals that the CVAs are reflective of sales prices in the vicinity and therefore no further adjustment is required. In this case, the median ASR falls within the range at 0.976. Therefore, Mr. Oberle recommends no further downward adjustment to the current value of $691,000 proposed by MPAC.
27The Appellants introduce two additional properties in support of an equity argument. They are 35 Mountwood Avenue, which has a 2016 CVA of $371,000 and sold for $849,900 in January 2020; and 41 Chatham Street with a 2016 CVA of $434,000, which sold in August 2013 for $356,000 and again in January 2020 for $760,000. Mr. Vasselin requests that the Board consider these two properties in determining the assessed value of the subject property.
Findings on Issue 2 - Equity
28In this proceeding, the Board finds that the best evidence in relation to whether an equitable reduction of current value is required, is the sale and assessment evidence presented by MPAC with a sample of property sales that have all been time adjusted back to a January 1, 2016 valuation day.
29The Board has analysed the two properties submitted by the Appellants and finds that these property sales are too far removed from the January 1, 2016 valuation day and without proper time adjustments cannot not be added to the equity study. The properties submitted by MPAC have been properly time-adjusted and have sales that are closer to the valuation day.
30The Board has analysed MPAC’s equity study and has determined that the mean ASR of 0.955 is a better indicator of central tendency because it includes all the values in the data set and, in this case, a uniform data set with no outliers. An ASR of 0.955 indicates that similar properties in the vicinity are assessed within the acceptable range of 0.95 to 1.05 therefore, no downward adjustment should be made to the correct current value of the subject property in order to ensure it is equitable with the assessment of other properties in the vicinity.
ORDER
31The correct current value of the subject property is $608,000 for the 2019 taxation year. MPAC has not filed a notice of intention to seek a higher assessment, as required by Rule 40 of the Board’s Rules of Practice and Procedure. I therefore confirm the assessment at $542,000 for the 2019 taxation year.
32Pursuant to s. 40(26) of the Assessment Act, R.S.O. 1990, c. A.31, the Appellants are deemed to have brought the same appeal in respect of the 2020 taxation year. This decision applies also to the 2020 taxation year appeal. I therefore reduce the assessment from $547,000 to $542,000 for the 2020 taxation year.
“Anthony LaRegina”
ANTHONY LaREGINA MEMBER Assessment Review Board A constituent tribunal of Tribunals Ontario - Environment and Land Division Website: www.elto.gov.on.ca Telephone: 416-212-6349 Toll Free: 1-866-448-2248
ATTACHMENT 1
MPAC’s Property and Sales Information
| Subject Property | Property #1 | Property #2 | Property #3 | |
|---|---|---|---|---|
| Roll Number | 251801010400702 | 251801009157030 | 251802012503434 | 251802012601150 |
| Address | 189 LOCKE ST N | 54 MELBOURNE ST | 213 HESS ST N | 242 PARK ST N |
| Neighbourhood | H06 - 112 | H08 - 113 | H11 - 115 | H15 - 114 |
| Property Code & Desc. | (301) Single-Family Detached (Not On Water) | (301) Single-Family Detached (Not On Water) | (301) Single-Family Detached (Not On Water) | (301) Single-Family Detached (Not On Water) |
| Distance in km | 1.3334 | 0.5308 | 1.0618 | |
| Current Value Assessment | $542,000 | $612,000 | $431,000 | $396,000 |
| Sale Date | 20151019 | 20160601 | 20150731 | |
| Sale Amount | $593,500 | $547,000 | $450,000 | |
| Time Adjusted Sale Amount | $611,081 | $514,438 | $480,407 | |
| Effective Frontage (F) | 25 | 24.75 | 27.89 | 30 |
| Effective Depth (F) | 101.34 | 140 | 177.12 | 120 |
| Effective Site Area (Acres) | 0.06 | 0.08 | 0.11 | 0.08 |
| Actual Site Area (Acres) | 0.06 | 0.08 | 0.11 | 0.08 |
| Residential Structure | ||||
| Structure Code & Desc. | (301) Single Family Detached | (301) Single Family Detached | (301) Single Family Detached | (301) Single Family Detached |
| Year Built | 2017 | 2015 | 2006 | 2004 |
| Quality of Construction | 6.5 | 7 | 6.5 | 6.5 |
| Full Storeys | 3 storeys | 2 Storeys | 2 Storeys | 2 Storeys |
| Baths | 4.5 | 2.5 | 2.5 | 2.5 |
| Building Total Area (SF) | 2,371 | 2,175 | 1,931 | 1,809 |
| Secondary Structure(s) | ||||
| Structure Description | (116) Attached Garage | (116) Attached Garage | (116) Attached Garage | |
| Year Built | 2017 | 2006 | 2004 | |
| Building Total Area (SF) | 266 | 229 | 240 | |
| Quality of Construction | 3 | 3 | 3 | |
| Add for additional bathrooms | $14,000 | $14,000.00 | $14,000.00 | |
| Add for garage | $11,358.00 | |||
| Add for Abut Industrial +6% | $31,706.00 | |||
| Add for Abut Multi-Res +2% | $9,888.00 | |||
| subtract for Pool | $7,986.00 | |||
| Time of Sale Amount after adjustments | $628,453.00 | $560,144.00 | $504,295.00 | |
| CVA/sf | $228.60 | |||
| TAS/sf | $288.94 | $290.08 | $278.77 |
Page 1 of 3
ATTACHMENT 1
MPAC’s Property and Sales Information
| Subject Property | Property #4 | Property #5 | Property #6 | |
|---|---|---|---|---|
| Roll Number | 251801010400702 | 251802013030020 | 251801010501940 | 251801006302740 |
| Address | 189 LOCKE ST N | 275 QUEEN ST S | 69 RAY ST N | 52 LONGWOOD RD N |
| Neighbourhood | H06 - 112 | H08 - 113 | H05 - 112 | H04 - 111 |
| Property Code & Desc. | (301) Single-Family Detached (Not On Water) | (301) Single-Family Detached (Not On Water) | (301) Single-Family Detached (Not On Water) | (301) Single-Family Detached (Not On Water) |
| Distance in km | 1.8007 | 0.5432 | 1.4924 | |
| Current Value Assessment | $542,000 | $500,000 | $488,000 | $514,000 |
| Sale Date | 20160706 | 20160805 | 20160531 | |
| Sale Amount | $552,124 | $603,000 | $550,000 | |
| Time Adjusted Sale Amount | $513,697 | $555,089 | $522,919 | |
| Effective Frontage (F) | 25 | 26.94 | 32.91 | 30 |
| Effective Depth (F) | 101.34 | 129.99 | 133.83 | 109 |
| Effective Site Area (Acres) | 0.06 | 0.08 | 0.1 | 0.08 |
| Actual Site Area (Acres) | 0.06 | 0.08 | 0.1 | 0.08 |
| Residential Structure | ||||
| Structure Code & Desc. | (301) Single Family Detached | (301) Single Family Detached | (301) Single Family Detached | (301) Single Family Detached |
| Year Built | 2017 | 2016 | 2008 | 2011 |
| Quality of Construction | 6.5 | 6.5 | 6.5 | 6.5 |
| Full Storeys | 3 storeys | 2 Storeys | 2 Storeys | 2 Storeys |
| Baths | 4.5 | 3 | 1.5 | 2.5 |
| Building Total Area (SF) | 2,371 | 1,732 | 1,966 | 1,670 |
| Secondary Structure(s) | ||||
| Structure Description | (116) Attached Garage | (116) Attached Garage | (116) Attached Garage | |
| Year Built | 2017 | 2008 | 2011 | |
| Building Total Area (SF) | 266 | 284 | 272 | |
| Quality of Construction | 3 | 3 | 3 | |
| Add for additional bathrooms | $10,500.00 | $21,000.00 | $14,000.00 | |
| Add for garage | ||||
| Add for Abut Industrial +6% | ||||
| Add for Abut Multi-Res +2% | $10,483.00 | |||
| subtract for Pool | ||||
| Time of Sale Amount after adjustments | $534,680.00 | $576,089.00 | $536,919.00 | |
| CVA/sf | $228.60 | |||
| TAS/sf | $308.71 | $293.03 | $321.51 |
Page 2 of 3
ATTACHMENT 1
MPAC’s Property and Sales Information
| Subject Property | Property #7 | Property #8 | |
|---|---|---|---|
| Roll Number | 251801010400702 | 251801010550732 | 251801009251750 |
| Address | 189 LOCKE ST N | 90 CROOKS ST | 340 HERKIMER ST |
| Neighbourhood | H06 - 112 | H06 - 112 | H08 - 113 |
| Property Code & Desc. | (301) Single-Family Detached (Not On Water) | (301) Single-Family Detached (Not On Water) | (301) Single-Family Detached (Not On Water) |
| Distance in km | 0.1994 | 1.6541 | |
| Current Value Assessment | $542,000 | $439,000 | $726,000 |
| Sale Date | 20160310 | 20150918 | |
| Sale Amount | $549,900 | $600,885 | |
| Time Adjusted Sale Amount | $534,521 | $626,103 | |
| Effective Frontage (F) | 25 | 30 | 30.03 |
| Effective Depth (F) | 101.34 | 90 | 123.9 |
| Effective Site Area (Acres) | 0.06 | 0.06 | 0.09 |
| Actual Site Area (Acres) | 0.06 | 0.06 | 0.09 |
| Residential Structure | |||
| Structure Code & Desc. | (301) Single Family Detached | (301) Single Family Detached | (301) Single Family Detached |
| Year Built | 2017 | 2003 | 2014 |
| Quality of Construction | 6.5 | 6.5 | 7 |
| Full Storeys | 3 storeys | 2 Storeys | 2 1/2 Storeys |
| Baths | 4.5 | 2.5 | 3.5 |
| Building Total Area (SF) | 2,371 | 1,857 | 2,825 |
| Secondary Structure(s) | |||
| Structure Description | (116) Attached Garage | (116) Attached Garage | (101) Attached Garage |
| Year Built | 2017 | 2003 | 2014 |
| Building Total Area (SF) | 266 | 256 | 399 |
| Quality of Construction | 3 | 3 | 4 |
| Add for additional bathrooms | $14,000.00 | $7,000.00 | |
| Add for garage | |||
| Add for Abut Industrial +6% | |||
| Add for Abut Multi-Res +2% | |||
| subtract for Pool | |||
| Time of Sale Amount after adjustments | $548,521.00 | $633,103.00 | |
| CVA/sf | $228.60 | ||
| TAS/sf | $295.38 | $224.11 |
Median price per sq. ft. $291.55 x 2,371 sq. ft. = $691,265
Page 3 of 3 Average price per sq. ft. $287.57 x 2,371 sq. ft. = $681,828