Compromise sought on tax breaks for patio homes
Groups hold meeting to tackle problem
Many suburban dwellers and town leaders used to take a live-and-let- live approach to condominium owners who got tax breaks.
Then came patio homes.
Suddenly, the idea that a condominium could look identical to a single- family home, sell for half-a-million dollars and get a 40 percent property tax break seemed downright appalling. People from Amherst, Lancaster, Elma and beyond demanded restrictions, while condo developers protested in an escalating war of words.
On Wednesday, town assessors from Erie County sat at the same table for the first time with builders and home sales representatives to try to resolve their differences.
“We do see a need for compromise,” said Dan Locche, government affairs director for the Buffalo Niagara Association of Realtors.
At the morning meeting in the Amherst Pepsi Center, about 20 people representing local governments and private industry agreed to develop a more “fair and equitable” taxing solution for patio home developments.
While the meeting was contentious at times, those present seemed willing to hunt for common ground by the end of the discussion.
Most could agree it’s not fair to require patio home owners to pay as much in taxes as single-family homeowners because patio home developments are completely private and use fewer town services. But they also agreed that a 40 percent to 50 percent tax cut is unjustifiable.
Patio homes represent the newest generation of condominium ownership. These ranch-style homes aren’t attached to other housing units. They have their own garages and yard space.
But they line private roads, and homeowners pay into an association to have someone else take care of their lawns, landscaping, snowplowing and private water and sewer lines.
In the past five years, Amherst has seen the construction or approval of more patio homes than single-family homes. Most other area suburbs have also seen major patio home growth, with recent developments of more than 100 units sprouting up in Lancaster and Elma.
Patio homes offer a single-family home lifestyle to people who no longer want the maintenance hassle associated with big homes and big yards. They are wildly popular with older suburbanites and sell at a premium.
But they also stand in the cross-hairs of town officials who resent the ability of these upscale properties—a few of which could break the $1 million mark — to evade market value tax assessments because of their condominium status.
Restrictive condominium resolutions have begun popping up on town board agendas, and rezoning requests for new patio home developments are receiving closer scrutiny, being held up or denied. Several towns also support a bill by State Sen. William Stabchowski that would allow local governments to ban new condominium construction.
Amherst Deputy Supervisor Shelly Schratz, who organized Wednesday’s meeting, said any solution for Western New York should start with buy-in from all stakeholders.
“We all agree that the state does not work quick enough on our behalf,” Schratz said. “We can do it ourselves. Government, business, developers, the community — we can come up with compromises we can all benefit from because we all live here.”
Group members tossed out a number of potential compromises Wednesday. Some suggested patio homes could be assessed at full market value but still receive some limited tax exemptions or tax credits. Others recommended the creation of a special town fee specific to patio homes.
The group agreed to create a subcommittee, spearheaded by Lancaster Assessor Dave Marrano, that will work on a report to better determine services that patio home owners pay for privately versus those they use publicly.
That’s the first step in creating a compromise policy, group members said.
Representatives for the Buffalo Niagara Builders Association also agreed to bring back a list of compromise suggestions including those considered at Wednesday’s meeting.
And representatives with the Buffalo Niagara Realtors Association agreed to investigate how communities elsewhere have tackled condo tax inequities.
The group will meet to share its findings on Aug. 20.
