Hundreds of houses that still have to be built in the townships Liberty and Berlin will be equipped with something special.
Delaware County Commissioners have approved petitions submitted by developers to create new municipal authorities for two residential and mixed-use projects: the Berlin Meadows in the Berlin community and the Liberty Grand in Liberty Township.
The New Community Authorities (NCAs) are raising property tax costs for those who buy homes in the NCA areas by additional millage. The petitions say the millage would be used to pay off the debt for infrastructure costs such as roads required to complete the developments.
According to the Liberty Grand petition, the development spans 288 acres south of Hyatts Road, west of Sawmill Parkway, and east of Steitz Road, and would include up to 489 single-family homes.
The Berlin Meadows petition concerns a development that will include up to 336 single-family homes on 280.22 hectares. The sections are south of Peachblow Road and north and south of Cheshire Road.
Jane Hawes, county director of communications, said the commissioners approved the petitions as the townships are not involved in the formation of the NCAs. By comparison, the Delaware City Council approves all NCAs formed in the city.
The Liberty and Berlin petitions do not include millage amounts for either NCA.
Bob Lamb, the county’s director of economic development, said the Berlin Meadows Millage was 10.25 mills. The petition said the Millage collection would start in 2024 and continue until at least 2053.
Mike Schuiling, Liberty Township administrator, said the Liberty Grand NCA rating was 3.5 mills.
“The duration of the fee is not set at this point as the fee will be terminated after the cost of the infrastructure has been paid back,” he said.
Berlin Community Trustee Ron Bullard said existing homes in the community are not affected by the NCA, which only covers future homes to be built in the Berlin Meadows development.
Bullard said buyers must do due diligence before buying a home to make sure they know what their property taxes would be.
By using Millage to fund infrastructure, new homes in NCAs often have a lower comparable asking price, Bullard said.
In areas without an NCA, the infrastructure costs are often integrated into the asking price of a house.
“What happens is the houses seem less costly because you are paying for the house direct, but the (NCA-Millage) will hit you on the other side that no one ever needs to look at. You will find them when they Get her tax bill, “said Bullard.
The Berlin Meadows and Liberty Grand petitions contain no indication of how home buyers should be informed about the NCAs.
State law requires the community development fee to be included in affected home purchase agreements, said Mike Ringle, the county’s assistant principal auditor.
Lee Yoakum, community affairs coordinator in Delaware, said the city council has passed guidelines on how to inform home buyers about NCAs in the city.
“Legally, the existence of an NCA must be disclosed in graduation documents,” said Yoakum. “The city requires that an NCA be highlighted to prospective tenants, property owners, and others involved in the charges. We will occasionally hear from homeowners who were unaware.” But overall, the developer community seems to have done a pretty good job of alerting property owners to an NCA fee. “
“Once they buy this house, no one can change where they are,” said Bullard.
New local authorities will be established in accordance with Chapter 349 of the revised Code. NCAs have the authority to charge a community development charge, Ringle said.
He said state law allows options for community development fees. Millage based on estimated value – similar to property tax levies – is an option and was chosen for both NCAs. The valued values are 35% of the actual (market) value.
For the Berlin Meadows NCA, the annual cost would be $ 358.76 per $ 100,000 home value. For the Liberty Grand NCA, the cost would be $ 122.50.
Other options include a fee similar to a sales tax, a flat fee per package, or any combination of the three, Ringle said.
For Millage, an NCA can certify the community development fee to the auditor’s office, and all fees are entered as a special valuation on the tax list and duplicates for the appropriate packages, he said.
The fees would be included on property tax bills, he said.
While the fees are being collected, the auditor and treasurer determine the overall collection that is paid to the NCA, Ringle said.
An NCA is led by a board of trustees composed initially of residents, a representative from the local government, and representatives from the developer, he said.
The NCA’s board of directors is making loan payments or other expenses in line with the development plan, he said.
Petitions filed by developers routinely describe the proposed community development fee, Ringle said.
According to state law, the millage for voting taxes is reduced if the overall valuation of the properties in the affected municipality increases. In this scenario, the NCA millage is not reduced, he said.
“The community development fee is technically not a tax, so if the fee is based on estimated value, the fee may fluctuate with each increase or decrease in estimated value,” said Ringle.
“If the millage is based on the estimated value, the new homeowner could be billed more if the house is subsequently evaluated at a higher value,” he said.
editorial@thisweeknews.com
@ThisWeekNews