The Housing Authority of Warren County's financial difficulties at Canterbury Court just got slightly easier to bear, but overall, the property is still losing money.
Following an appeals hearing on March 4, the site's taxes will be assessed based on a slightly lower appraisal, but one that is still substantially higher than just a few years ago.
In 2011, Canterbury Court had an appraised value of $630,000 for tax purposes. In 2012, a new appraisal by Warren County estimated the building's value at $1,122,030, which is an increase of nearly $500,000.
The associated increase in taxes, coupled with an approximately $20,000 per month mortgage payment, led Canterbury Court to run a significant loss in 2012.
The combination of rent and housing subsidies at the building total approximately $780 per month gross income from each unit. The figure does not cover costs to operate the building, pay taxes and cover the mortgage.
The authority hired an independent appraiser to re-evaluate the figures and was able to return to the Warren County Tax Appeals Board with a figure just over $900,000.
After some negotiation, the authority and the Tax Appeals Board agreed on a new appraised value of $919,340.
While an approximately $200,000 reduction in appraised value as a basis for tax assessment purposes will reduce the losses the site incurs, it won't turn around building finances alone.
According to authority staff, they are pursuing refinancing the building's mortgage to help balance finances.
Additionally, the authority is planning to pursue property tax exempt status at the site as a non-profit entity.