Friday, November 12, 2010

Property Taxes Too Taxing for H Street?

Many of you have probably already read the letter in the new edition of the mail railing against the tax hit taken by H Street businesses. One of the signatories on the letter is Anwar Saleem of Hair Rage, and H Street Main Street. Recall that there was legislation passed (Tommy Wells initiated) that postponed property taxes for H Street property owners to help alleviated the negative business impact of all the construction. Here's a list of stuff that went to the tax sale. Many of these owners have totally paid up by now, so don't freak out if you see a familiar address.



JEMAL'S ULINE LLC 0000 3RD ST NE $12,159.94
JEMAL'S ULINE LLC 1132 3RD ST NE $172,393.48
THE NEW YORKER, LLC 0300 L ST NE $76,006.88
THE NEW YORKER, LLC 1100 ABBEY PL NE $6,493.18
THE NEW YORKER LLC 0000 ABBEY PL NE $8,022.66
THE NEW YORKER, LLC 1111 3RD ST NE $3,538.93
337 H ST NE $8,302.30
410 H ST NE $6,979.38
411 H ST NE $12,677.50
415 H ST NE $49,352.31
417 H ST NE $6,586.43
418 H ST NE $853.92
421 H ST NE $5,251.28
517 H ST NE $9,821.88
523 H ST NE $31,363.57
644 H ST NE $7,178.12
1000 H ST NE $7,355.03
1005 H ST NE $11,134.10
1010 H ST NE $2,757.64
1014 H ST NE $4,500.64
1012 H ST NE $4,184.72
1017 H ST NE $8,477.90
GEORGES PLACE LTD 0000 H ST NE $9,566.42
1214 H ST NE $24,942.91
1220 H ST NE $2,619.55
1224 H ST NE $4,231.60
1230 H ST NE $4,564.56
1242 H ST NE $14,157.29
1360 H ST NE $2,242.54
1362 H ST NE $6,242.58
816 14TH ST NE $5,150.20
0000 H ST NE $700.78
1381 H ST NE $178.16
0000 H ST NE $2,686.50
1417 H ST NE $768.00
1423 H ST NE $9,353.99
1431 H ST NE $4,711.66

9 comments:

Kenny G said...

A few questions:

1. Did all of these properties actually get put up for auction at the 9/20 tax sale?

2. Can anyone elaborate on:

a. What was sold?
b. How much lead time was given to delinquent businesses?
c. How long overdue did payments need to put someone on the list?

Anonymous said...

Several of these were legitimate SNAFUs. The owners had used the tax deferral that Wells had passed through Council but OTR seemed totally oblivious to it. They were charged penalties and interest for "late payments." If you've ever gotten into a battle with them, you know it's like falling down The Rabbit Hole. Those properties were cleared and not auctioned.
Many other owners simply paid up.
The majority of the properties were two or more years in arrears and had already accrued penalties and interest. The owners were not unaware of their delinquent status nor that their properties would be auctioned if they did not settle their tax debts.

Some of the properties are vacant. The blight of H Street with owners unwilling to lease or sell. Or unwilling to lease or sell at reasonable prices. In some cases, the properties are leased and the tenants are paying the taxes - to the landlord who does not remit the tax payments to the city. In others, long-time owners are operating businesses but fail to pay their taxes.

Anwar Saleem has two properties on this list. He redeemed his beauty salon, Hair Rage, at 1017 but 1005, the former Will Power, was auctioned. The taxes had gone unpaid for at least two years.

inked said...

Kenny G,
everything 2:38 said was legit. OTR really did screw up some stuff. As for what sold, I haven't seen a list. Even after a property sells the original owner can redeem the property by paying the amount owed plus interest. Essentially the bidder at a tax sale is buying the debt. If no payment is forthcoming the aspiring owner brings a quiet title case in court, and can eventually get the property that way. But it can take a while.

oboe said...

everything 2:38 said was legit. OTR really did screw up some stuff. As for what sold, I haven't seen a list...

Obviously, like anything else, some of this stuff gets complicated. But, like with home foreclosure, *everybody* has got a story about why their case should be an exception.

You have to pay your property taxes. If you're sitting on a blighted and/or vacant structure, the only leverage the city has to make you become a contributing member of society is through its tax rate. It *has* to have teeth. If you have a legitimate case to make an exception, you take it up with OTR and your councilmember's office.

But those storefronts have been rotting for decades, and the owners have made the conscious decision to let them rot. The idea that this is primarily fallout from H Street construction is laughable on its face.

Kenny G said...

Thanks 2:38:00 AM. Get some sleep!

Anonymous said...

Which ones have paid up?

This piece is outrageous. How does this guy get a government funded job as head of H Street Main Street, not pay his taxes for two years, and then blame Tommy Wells when the city takes action to collect on the unpaid taxes? Here's an idea: pay your taxes and stop being a deadbeat or consider yourself lucky you still collect a taxpayer funded salary.

Anonymous said...

My heart isn't bleeding.
Here's details of a loan on the property at 523 H, the corner bar under renovation at 6th and H, that owed $31,363.57. http://www.futuregenco.net/images/DC_2010-101_Offering_Sheet_on_H_Street.pdf

The owner shows a net worth of about $3 million and secured the loan with a second trust on other property he owns at 425-427 8th Street, SE, on Barracks Row.
This is NOT a poor man. He just didn't pay his taxes for a long time and the city had to threaten to sell at auction to get him to cough up.
He probably redeemed it.

Anonymous said...

The New Yorker (300 L St NE) is a real eye sore.

Someone needs to build some condos kitty-corner from the Loree Grand.

The Grinch who stole H Street said...

Tax relief for a wig shop only means it will end up going out of business two years from now instead of today.