Demolitions Lead to Increased Property Taxes

On April 14, 2019, Bexar County Chief Appraiser, Michael Amezquita told the San Antonio Express News that the “biggest horror shows” when it comes to property tax increases are, “Anything within 3 miles of the Pearl.” Among many near-downtown neighborhoods, he specifically called out Tobin Hill North.

In 2016 a developer bought two older but structurally sound duplexes at 421 and 425 E. Mistletoe Ave. in Tobin Hill North. They obtained a demolition permit, cleared the land and built six two-story houses, facing a center drive. In some cities, they call these slot homes, and in 2018, Denver passed an ordinance which does not allow themto be built there any longer. The houses on Mistletoe were completed this spring and they sold for between $325,000 and $370,000 each. And they are driving our property taxes up.

Of course, most people will tell you is that these new, two-story houses will not be used as a comparable property with our older, single-story bungalows and cottages. They are right, the improvements portion of your tax valuation won’t use these new houses as comps. However, that only accounts for part of your tax valuation.

Between 2015 and 2017, the Bexar Appraisal District increased only the improvements portion of the appraisal by about $2000 on my house, which is across the street from the new Mistletoe development. In that same time, the land value went from $25,000 to $61,000. This is about a 144% increase in just two years. The 2019 valuation has now increased our land value to $177,290. It has nearly doubled again, a 369% increase over four years. 

Sometime between 2015 and now, the Appraisal District realized that the original house on each lot could be torn down and three could be built in its place. Try going to Bexar Appraisal District and arguing that your landis not worth what they say it is.

Since January 2019, the Office of Historic Preservation has received seven demolition applications for Tobin Hill. Of those, three have been approved, two are on hold for evaluation by the Historic Design Review Commission, and two, 430 and 434 E. Magnolia, are still awaiting a decision by OHP. 

Like the properties on Mistletoe, 430 and 434 E. Magnolia are on a quaint and quiet street on the northern end of Tobin Hill.  While this part of Tobin Hill is not currently designated as Historic, it is surrounded on all four sides by Historic Districts: Monte Vista to the north and west, River Road to the east, and the Tobin Hill Historic District to the south. These two homes would be contributing to structures to a future Historic District in this area which has been identified in the past as being eligible for Historic Designation. 

The applications for the demolition of these houses on E. Magnolia have generated a lot of neighborhood concern. OHP received 24 letters of opposition to the proposed demolition of these homes. This far exceeds what OHP’s Scout SA team typically receives for demolition applications. It was enough that Shanon Shea-Miller, Director of the City of San Antonio’s Office of Historic Preservation, requested a site meeting between Scout SA and the property owner. 

During the meeting with the property owner, we discovered that the owner believes he can get a better offer on the land if it is vacant. However, these houses are occupied and in good structural condition. Demolition should be a last resort, not a quick path to making a buck.  While the Appraisal District views the land as more valuable than the houses built on them, to the renters living there, this is home. 

When taxes go up, it makes it hard to stay in your home. This is how many homeowners go from living in housing that is affordable to becoming cost-burdened by their home. Landlords in my neighborhood, unable to get a homestead exemption on their rental properties, will need to raise rents to cover increased property taxes. Land values that have doubled, or in cases like mine, gone up 369% in just 4 years, mean that rents will rise to compensate for this increase. It is likely that many renters who could afford a place in Tobin Hill North in 2015 will soon be so cost-burdened they will have to find somewhere else to go.

430 and 434 E Magnolia are not stunning. They are not what some would consider worthy of a Landmark status. They are humble homes, and some of the last remaining affordable housing we have in Tobin Hill North. They are currently providing affordable housing in an area where finding an apartment or house to live in is becoming increasingly expensive.  The demolition of these homes, which are both currently occupied, and in sound structural condition, will cause the direct displacement of these residents. 

We need to focus on preserving the affordable housing that we already have. San Antonio’s Housing Policy Framework specifically calls for the preservation of naturally-occurring affordable housing, especially rental units, like the duplex at 430 E Magnolia and the home behind it at 434 E Magnolia.  The Policy calls for the prevention and mitigation of displacement, and the need to address the impact of rising property taxes on housing affordability. 

It is clear that in neighborhoods like Tobin Hill North, affordability is tied to the land valuation. Demolitions like the ones proposed on E. Magnolia should be vehemently opposed. Our city: Development Services, the Office of Historic Preservation, our City Council and our Mayor should be denying requests for demolitions on houses that are structurally sound, and especially those that are occupied. It is in the best interests of not only those currently in need of affordable housing, but also of those who live nearby, who don’t want to see exponential growth in their tax bill every year. 

430 and 434 E. Magnolia will go before the Historic Design Review Commission for consideration of Landmark Designation in order to prevent demolition on May 1 at 5:00pm. The Tobin Hill Community Association would appreciate letters in support of the Landmark Designation of 430 and 434 E. Magnolia. Statements can be emailed to jessica.anderson@sanantonio.gov

We are also asking for community support in attending the hearing and speaking in favor of the Landmark designation. If you intend to speak, please sign up in person at 1901 S. Alamo St. on the day of the hearing. You may sign up anytime between 2:30 and 5:00 PM before the cases are heard.