Harris County Appraisal District (HCAD) is over-taxing flooded property owners by 50 to 100%.
HCAD is NOT valuing these flooded properties accurately.
They are not following mandatory requirements of the Tax Code and the Texas Department of Licensing and Regulation.
HCAD and the Appraisal Review Board (ARB) are not considering market evidence in valuing flooded homes, grossly overtaxing Texans at their time of greatest need.
Both HCAD and the ARB are overtly ignoring the law. HCAD appraisers are testifying that the HCAD has not developed an opinion of market value. Despite evidence from the HCAD appraiser that their valuation does not meet basic requirements, ARB panels are ratifying the HCAD value in a breath-taking display of raw power and force.
The appraisal district and the ARB appear to be ignoring all evidence at hearings. In our opinion, it is clear the process is a sham after 1 or 2 hearings.
The ARB has also imposed a rule they will not consider any evidence of market value unless the property owner provides bids of repair costs.
This requirement violates the law and is denying owners of flooded properties a fair hearing.
Over the past 2 days, Patrick O’Connor, President of O’Connor, attended the HCAD disaster reappraisals on behalf of some of our clients alongside our team of tax agents. He was there to testify as an appraiser as well as act as an agent. We filmed at least 15 hearings believing upfront (and as it turned out, correctly) that HCAD would not act according to the law. The recording of one of the hearings is available for you here.
Ten plus O’Connor team members have attended the disaster reappraisal hearings, and to a person, each is stunned HCAD and the ARB are so boldly ignoring the law, and over-taxing flooded property owners by 50 to 100%. If HCAD were a private business, this would be price gouging.
For your reference, Texas Tax Code Sec. 23.02. REAPPRAISAL OF PROPERTY DAMAGED IN DISASTER AREA. (a) The governing body of a taxing unit that is located partly or entirely inside an area declared to be a disaster area by the governor may authorize reappraisal of all property damaged in the disaster at its market value immediately after the disaster.
Pay also special attention to Sections 23.01 APPRAISALS GENERALLY; Sec. 23.0101. CONSIDERATION OF ALTERNATE APPRAISAL METHODS; and Sec. 23.001 COST METHOD OF APPRAISAL.
HCAD’s position is to take the property value as of January 1, 2017 less the costs to repair. They are not using a recognized method to value flooded properties.
Tax Code Sec. 23.001 COST METHOD OF APPRAISAL, requires the appraisal district (CAD) shall (emphasis added) make any appropriate adjustment for physical, functional, or economic obsolescence. Economic obsolescence occurs when the value of a property decreases due to external factors in the neighborhood or immediate area.
Wouldn’t you consider the flooding of thousands of homes and parts of town to be economic obsolescence?
The comparable sales of flooded properties in those areas certainly support economic obsolescence, yet HCAD is absolutely ignoring that factor.
Comment below and let us know what you think. Are you as outraged as we are?
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How can the value if my property be the same or more after my house and belongings washed away in Harvey flood waters. My property, almost 1 year later has scars of the aftermath of Harvey.
I now have to carry the burden of rebuilding my property BACK to the standard of which you had it appraised. This is not and will not be something that happens overnight, especially since I did not have flood insurance.
Not being realistic as to the true values after Harvey, and blatantly lying should be grounds for a criminal investigation on all persons or parties involved.
We are so sorry you are going through that Gary!! We do have something in the works for our clients where were are coordinating judicial appeals. If you are not a client currently but you were flooded you can call our customer service line at 713-290-9700 to join! Outside of that, you would just need to contact Governor Abbott to voice your complaints and call for ARB reform. There is a form to fill out here: gov.texas.gov/apps/contact/opinion.aspx . You can also call them directly at (512) 463-1782.
Market value of houses that flooded dropped dramatically because of the flooding.
The market values are much lower than fair market value before the flood minus repair costs.
Buyers will not pay close to fair market value before the flood minus repair costs.
An honest, fair appraisal must include the actual market price drop.
Agreed!
I am amazed with many laws that my CAD appears to disregard. But I need to know how to file a complaint or how to express my concerns. Who oversees these boards?
Hi Michael! What we suggest is contacting Gov. Abbott directly and call for ARB reform. There is a form to fill out here: gov.texas.gov/apps/contact/opinion.aspx . You can also call them directly at (512) 463-1782.
We that oppose the out of control government, are the true patriots, nothing else, government always gets out of control when we the people don’t stay active in controlling them.
Their socialist leanings work well for them, until they run out of the other people’s money, which in this case is our money. When this type of dictatorship gets successful, we can only hope that they get the elevator shaft treatment that Sadam got.
Many of the ARB members ‘claim’ they too were business owners – obviously not successful though – no sane person would sacrifice the freedom, independence, and sense of accomplishment for the chicken coop style life of a government worker.
thanks for this opportunity
You are very welcome Norvin! We wanted to show what it was really like facing off against them. We couldnt believe how they were acting!
faa.gov/about/initiatives/plain_language/articles/mandatory/
The word means they can if they want to, and they didn’t want to apply the statue. If the law said they MUST , then they would have to apply the law. Contact your legislators.
Hi Tim! You are right! There are many things that they CAN do but choose not to do it. Its a shame really.
Outraged! HCAD and ATB need to follow the law! And due process!
Is this a political or partisan issue?
Hope not, see you at the voting Booth!!
Yes! Contact Greg Abbott either through this form gov.texas.gov/apps/contact/opinion.aspx or by calling (512) 463-1782. ASK FOR ARB REFORM! Also come November VOTE!
faa.gov/about/initiatives/plain_language/articles/mandatory/
The word means they can if they want to, and they didn’t want to apply the statue. If the law said they MUST , then they would have to apply the law. Contact your legislators.
May means they are allowed to do something, not required to do it.
Tim Holt
You are right Tim! There are many things that they CAN do for flooded homeowners. They just DONT want to do anything outside of their normal rubber stamp.
We need to know from you or other political parties that how we can penalize HCAD and ARB as hurt overtaxed property owners unite.
Hi Chia-Chung! We do have something in the works for our clients where were are coordinating judicial appeals. If you are not a client currently but you were flooded you can call our customer service line at 713-290-9700 to join! Outside of that, you would just need to contact Governor Abbott to voice your complaints and call for ARB reform. There is a form to fill out here: gov.texas.gov/apps/contact/opinion.aspx . You can also call them directly at (512) 463-1782.
What legal action is available against HCAD?
Hi David! We do have something in the works for our clients where were are coordinating judicial appeals. If you are not a client currently but you were flooded you can call our customer service line at 713-290-9700 to join! Outside of that, you would just need to contact Governor Abbott to voice your complaints and call for ARB reform. There is a form to fill out here: gov.texas.gov/apps/contact/opinion.aspx . You can also call them directly at (512) 463-1782.
OK, so what can be done about it? Can a law suit be filed with the state attorney general?
Hi James! We do have something in the works for our clients where were are coordinating judicial appeals. If you are not a client currently but you were flooded you can call our customer service line at 713-290-9700 to join! Outside of that, you would just need to contact Governor Abbott to voice your complaints and call for ARB reform. There is a form to fill out here: gov.texas.gov/apps/contact/opinion.aspx . You can also call them directly at (512) 463-1782.
I believe we are being unfairly taxed. What would really help us as homeowners is if your firm gives us options on how we can fight back – whether it is writing to our state representatives, city council members, or even if we need to form a class-action lawsuit. Thanks!
Hi Tony! Outside of protesting, contacting your local representatives, attending meetings, and voting are the biggest ways to let the higher ups know about your dissatisfaction in the process and the rates.
The tax rate is ridiculous, especially for those of us who are retired and have no income to speak of.
What can we do about this!?
Hi Linda! When you are over 65, you can apply for the over 65 exemption which will freeze your school taxes at the current rate. Other than that, besides protesting every year, the only other option would be deferment which isnt right for everyone and every situation. We agree that seniors are some of the hardest hit in the property tax world and many things need to be done in order to change this.
great job
Thanks August!
outlaws all!! Glad I have O’Conner fighting for me.
keep up the fight!!!
Thanks James!! We are trying to expose how it really is to go against this districts! Its amazing the way they are treating people!
I agree. The process is a sham. What is the next step. Should it be bought up to our law makers, governor, or go straight to the court.
The next step if we didnt agree with the process would be a more formal level of protesting that only a few cases actually qualify for. Notifying your local officials and voicing your displeasure in the process would be a huge help.
Good grief. Take them to court and LOCK THEM UP!
We were so taken aback by the treatment! If they were treating a president of a property tax company like that, how are they going to be treating the homeowner? Such a shame!
These people are dangerous. I had over five
feet of water in my home and they set my home value only five thousand dollars less
than the prior year taxed value. Absurd!!!
Where do they find these people?
So sorry to hear that William! We were outraged at the way they were talking about people that lost everything. To be an Appraisal Review Board member, you just have to have a bachelors degree. YOU DONT EVEN NEED TO BE IN REAL ESTATE! Isnt that just crazy!?
I filed a Fair & Equal Protest on my own years ago.
After the third time I responded to the board “the burden is on the District to present evidence showing it is fair and equal” the district representative said, “it’s not going to be fair and equal, if it was we would not have a job”.
At that point I stated the board must rule in my favor as the District said they would not do what the law required. The board quickly huddled, found for the district and said I could appeal, which I could not at that time on a fair and equal protest. I requested each one’s name and filed a lawsuit which they settled out of court.
Can an ARB board member be held personally accountable for not following the law?
Hi there! Unfortunately you cannot come after the individual ARB member. We are asking people to contact Governor Abbott to voice your complaints and call for ARB reform. There is a form to fill out here: gov.texas.gov/apps/contact/opinion.aspx . You can also call them directly at (512) 463-1782.
All the houses on my block got substantial reductions on a general reappraisal by HCAD because of Hurricane Harvey flooding
–EXCEPT MINE- not one penny of reduction.
Oh, and except the one 2005 house that was Not flooded because it was on a raised foundation.
But just being in the area, its value is impacted, but my guess is that HCAD was trying to make excuses why mine was not lowered?
A “like” home, in age and size, is now reappraised at $150,000 less than mine.
A much newer, and larger home is reappraised $100,000 less than mine. It is now totally remodeled, as is all the houses on my block. The owner happens to brag how he was instrumental in re-electing the Mayor of Bellaire
I did not have flood insurance. I am a 67 year old widow, living alone. I repaired the 1991 era house- I could not afford a “remodel”.
HCAD always reappraised for remodels. But it does not take an untrained eye to figure that a 1990s home inside looks very 2018.
An HCAD appraiser never contacted me as so stated in the letter I received. That means this reappraisal was not down on site.
These houses did not need to put on any proof for this “reappraisal”. I do not think this is arbitrary and capricious.
Oh, and one more, HCAD is falsely listing the “like” property next door to mine as unchanged even though it was demolished in January 2018. That property was not reduced. It also does not exist.
I called the Governor’s office at the number you provided. The answer was contact your state senator, the Governor has no jurisdiction. I told her that the state senator I contacted listened to me but has done nothing.
Her next comment was “hire a lawyer”. After I told the “answer desk lady”, thank you for no assistance, she told me she would note my phone call and “have a nice day”.
My house, in Southdale-Bellaire was flooded by Harvey. This comes after a $40M bond referendum “Rebuild Bellaire” resulted in anti-flood infrastructure sewer and drainage project that lasted 2 years.
Yet, other parts of Bellaire did not flood. The Mayor’s house which is situated near a street that always floods did not flood. But his property tax value was lowered regardless. When Chevron occupied its space, it did not flood. Now that it has vacated, the water now flows to that area: hence water there on July 4th.
The City Manager was allowed to purchase his residence outside Bellaire-because he claimed financial hardship. In 2014, upon hiring, his base salary was $155,000 His City of Houston $540,000 house did not flood.
As we speak, The City Manager and Mayor and City Council are pushing for 8 ft wide concrete pathways all through Bellaire replacing vegetation, including mature trees, with impervious materials. They took a survey of 2% of the population. That survey hand-picked residents that wanted the sidewalks so they could push their baby-buggies on scorching humid days and give them heat-stroke
Bellaire’s obsession with it’s Evelyn’s Park is purely monetary. There are no trees. Just Food Trucks that kick-back revenue to the City. Bellaire pushed through a liquor license for the restaurant that held them hostage on that demand despite it is a place for children. Terrible food, Terrible prices and Terrible service. Yet I am amazed that the residents really did stop coming–even that 2%. Without fighting the breach of contract, Bellaire allowed the owners to leave owing money to the vendors and the City.
So you see, the 8 foot “Pathways” are not about the children. Not when $60,000, post-flood, goes to change the City logo that nobody looks at or cares about. It is about $$$$$.
I have been proactive against the City Manager that has been allowed to use the tax coffers like his personal piggy-bank. The City Manager has gotten Bellaire property taxes raised through to pay the interest debt on his ongoing bond referendums. It also has raised the City Utility Bills and added curb re-cycle costs when it had its own recycle center–which he promptly tore down so no turning back.
All these “governments” that the Governor states he has no “jurisdiction” over.
Is HCAD “in” with Bellaire Government in choosing who gets a reduction? Yes, definitely in cahoots. Those that oppose the Mayor and his City Manager go punished. HCAD threw in a few others on my block just to make it look legit.
Hi Carol! We are so sorry you are going through that! Could you send me an email at fchiaravallo@poconnor.com? I would love to learn more about your story! Thanks!