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Politics & Government

Assessor: County's Real Estate Market in `Fragile' Recovery

County Assessor-Clerk-Recorder says the local real estate is slowly recovering

Riverside County Assessor-Clerk-Recorder Larry Ward told the Board of Supervisors today that the local real estate market is "slowly being nursed back to health,'' with the property tax assessment roll declining less than expected in the current fiscal year, though uncertainties remain.

"Unfortunately, for an unprecedented fourth straight year, the assessment roll is showing a negative number. But it is substantially less than our earlier projections of 2 to 2.5 percent,'' Ward said during a presentation at the outset of the supervisors' weekly meeting.

"Hopefully, the flat assessment roll is an indication we've bottomed out from the worst real estate crash since the Great Depression and will begin the long, slow process of recovery,'' he added.

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The Assessor-Clerk-Recorder's 2012-13 fiscal year figures on the county
property tax assessment roll estimate the composite value of all commercial and
residential real estate in Riverside County to be $204.8 billion, compared to
$205.1 billion in 2011-12. That's less than a quarter-percent decline.

The roll fell from $208.2 billion between 2010 and 2011, a drop of around 1.5 percent. Values are based on properties' estimated worth as of January of each year.

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"The market is slowly being nursed back to health, thanks to low interest rates and a modestly growing economy,'' Ward said. "Clearly, any recovery in the real estate market is fragile.''

The assessor's original tentative projection of a 2-2.5 percent loss in the value of the assessment roll would have translated to a roughly $10 million loss in revenue to the county, which derives more than 80 percent of its discretionary general fund income from property tax receipts.  Because the drop in value amounted to .15 percent, the revenue loss will be just under $1 million, according to Ward.

Supervisor John Benoit was encouraged.

"It doesn't solve our problems, but at least we're moving in the right
direction,'' Benoit said.

Ward said 53 percent of the county's residential properties were devalued this year.

Bright spots in the assessor's report included a major slowdown in foreclosure activity and a slight jump in commercial property values, including apartment complexes, hotels and mega-warehouses. Ward cautioned, however, that
more than 17,000 assessment appeals on commercial properties have yet to be
adjudicated.

A total of 515,114 single-family homes, 63,723 condominiums and 64,933
mobile homes countywide were included in the residential assessment. The roll
counted 27,099 commercial properties.

According to assessor's office spokeswoman Michelle Martinez-Barrera,
adjustments were made to 337,000 residential properties, and most of those
modifications were in the form of a reduction.

Assessed valuations by city showed that Coachella recorded the largest
decline in value -- 4.92 percent. The largest gain was in the city of Eastvale,
at 3.29 percent.

Jurupa Valley's conversion to a municipality resulted in double-digit declines in several unincorporated communities. The largest increase among unincorporated areas was in Desert Center, where the net aggregate taxable value of properties jumped 102 percent thanks to several solar energy projects reaching the development stage.

Starting July 15, property owners can view their valuations online at
www.riversideacr.com. Paper copies must be requested.

Owners who wish to dispute their assessments have until Sept. 4 to file
Proposition 8 decline-in-value applications, which will be reviewed by an
assessment appeals officer, or one of the county's three appeals boards.

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