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Commissioners raise questions after modular Tenable Homes owners receive unexpected permit/invoice
Summary
Commissioners and staff discussed a parking-permit/invoice tied to modular/manufactured units in a Tenable Homes subdivision; staff said manufactured units are not assessed as real property and said they are investigating how the invoice was calculated and whether a state or local rule governs that charge.
Commissioners raised concerns Aug. 13 after Tenable Homes homeowners received an invoice described in the meeting as a monthly parking-permit fee calculated in a manner staff said mirrors property-tax methodology.
What commissioners heard: Commissioner Filipczak (who described the Tenable Homes development on Folsom Street) said homeowners were surprised to receive an invoice that appeared to be roughly $1,900 (the transcript indicates the $1,900 figure in the discussion). Staff responded that manufactured homes are not assessed the same way as conventional stick-built homes and that the city’s assessor treats the charge as an invoice rather than a conventional property-tax bill for the unit. Staff also said that if Tenable Homes (the developer) later subdivides and sells the lots and the homeowner gains ownership of lot plus improvement, the assessing office indicated the invoiced charge would likely revert to a standard property-tax assessment on the lot and improvement.
Why it matters: Commissioners said unexpected recurring invoices reduce affordability and can undercut small-scale or innovative housing projects the commission wants to encourage. Several members asked staff to investigate the legal source and administrative origin of the invoice and to report back.
Key points from the meeting
- Project background: Commissioner Filipczak said the Tenable Homes modular homes are being sold for under $200,000 in several models; financing and subdivision logistics have been a challenge for buyers.
- The invoice: The homeowners received an invoice described in the meeting as a monthly parking-permit fee; commissioners and staff discussed whether it functionally replaces a property-tax assessment on the manufactured unit. Staff said the city assessed the amount using the same formula as property tax in the absence of a conventional property assessment on the unit.
- Staff follow-up: City staff said they would investigate the administrative or statutory authority that resulted in this invoice and follow up with commissioners. Council members and commissioners agreed the issue should be clarified before similar projects proceed or before commission recommendations on manufactured-home strategies are finalized.
Ending
Staff indicated they would return with more information; several commissioners and a council member said they would support clarifying whether the charge is set by state statute or local administrative practice and whether it can be modified to avoid unexpected affordability impacts for buyers.
