A move to jump-start El Dorado County's housing market by offering a tax break to seniors moving from other counties has drawn fire from residents who characterized the plan as a gift to developers.
"Once again, the board is selecting one particular group to benefit from this decision at the cost to the community as a whole," Camino resident Sue Taylor said last week, urging the Board of Supervisors not to pursue an ordinance that would implement Propositions 90 and 110.
The measures, passed by California voters in 1988 and 1992, respectively, give counties discretion to allow transfer of low property assessments from another county, based on age or disability.
At the urging of real estate agents and developers, the board last month called for an ordinance that would implement the measures for a two-year pilot period. But staff members learned that, under state law, the programs would have to be available for at least five years.
The propositions were intended to make it attractive for homeowners whose children were grown to downsize, freeing up larger houses for families.
El Dorado would be the only rural county to offer the tax break, and members of the El Dorado County Association of Realtors said that could give the county an edge in attracting well-heeled, active seniors who are looking for a place to retire.
Real estate broker Ken Calhoon said about 600 homes are vacant in El Dorado County. About 200, he said, have been repossessed by lenders and 330 face short sales.
The Proposition 90 tax break likely would attract retiring baby boomers, he said.
Calhoon characterized these prospective homebuyers as people whose children are grown, so they would not impact local schools. With substantial retirement income and health insurance, they would be a boon, not a burden, to the county and the local economy, he argued.
Some residents, however, fear the tax break would encourage more development of the county's rural areas while failing to provide adequate property tax revenue.
John McCoy, a member of the Affordable Housing Coalition of El Dorado County, said members of the group were prepared to make concessions to secure affordable housing, whether it meant accepting apartments in their neighborhoods or giving up a little tax money.
"But this is a big giveaway," McCoy said.
He suggested limiting the tax break to buyers of existing homes – to reduce the number of vacant houses and foreclosures – and not extending it to new development. But the county counsel said the law does not allow such distinctions.
The proposed ordinance would implement the state measures as passed by voters.
The board directed staff members to draft an ordinance to establish a five-year program and to seek comment from the approximately 70 special districts and other agencies that would be affected.
Supervisor Norma Santiago said she favored bringing an ordinance to the board for a hearing, but stressed that she was not committing to support it.
Call The Bee's Cathy Locke, (916) 773-6866.
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