Owners and assessor clash over valuation approach for two Sequim-area manufactured-home parks; examiners recommend sustaining assessor figures

Owners and representatives of two Sequim-area manufactured-home communities urged Clallam County hearing examiners to take an income-based approach and steep lease-up discounts when valuing unfinished parks, but the assessor's office defended a sales-driven mass-appraisal method and the examiners recommended sustaining the assessor's valuations.

Why it matters: the choice between a sales-per-site mass-appraisal approach and a fee/appraisal income approach with a lease-up discount can change assessed value materially for large parks; those changes affect future property tax revenues and the financial viability of owners and affordable-housing operators.

What appellants said: Michael Ryan (Ryan LLC) and Jake Bond presented for CC West Alder (52 pads) and Lavender Meadows (217 pads). They argued actual income and underwriting data should drive the valuation and that recent state rent-cap legislation would affect future buyers' expectations. Jake Bond gave an itemized account of site-improvement and permitting costs needed to make pads “foundation ready,” and singled out per-lot non-reimbursable permit and impact fees, which he said total roughly $24,491 per lot. He said some non-reimbursable site costs and city fees mean a buyer would discount the fully stabilized pad price heavily today.

What the assessor said: Assessor staff acknowledged lease-up discounts are appropriate for unfinished parks but said the office must use market sales and mass-appraisal checks where possible. The assessor described valuing leased sites at an estimated $130,000 per pad and applying discounts to unleased pads so the overall assessed value reflects both stabilized sales and the unleased position. The assessor also said the fee appraisal provided by the appellant appeared to reflect an enterprise or business valuation that a new market participant might not pay on the lien date.

Key numbers from the record (as presented during the hearing): - CC West Alder (file 2025-192): assessor's reported value in the record ~ $4,000,002.53; petitioner proposed an income-derived value near $3,828,200 using a 6% cap-rate (exhibits presented in packet). - Lavender Meadows (file 2025-193): assessor's reported value in the record ~ $16,000,002.74; appellant's as‑is appraisal (after lease-up discounting and costs) argued for a substantially lower as‑is value (~$8,000,000 in the submitted appraisal).

Representative quotes: - "We're requesting that the board give consideration to the actual income... using a 6% cap rate..." said Michael Ryan describing the appellants' income approach. - "These are the costs that anyone would have to incur..." Jake Bond said, listing excavation, electrical pedestal work, drainage, sewer and permitting that he said are required per lot. - "We valued sites leased at full value — $130,000 a pad — and then discount unleased pads for lease-up," an assessor representative said, explaining the mass-appraisal check used in county valuations.

Examiner recommendation: after hearing both sides and discussing appraisal methods, examiners announced a recommendation to sustain the assessor's valuations for both CC West Alder (2025-192) and CC Lavender Meadows (2025-193). The examiners told parties they will forward written recommendations to the Clallam County Commissioners, who will issue the final board orders.

What remains unresolved: the hearing record shows disagreement over whether the appellant's lease-up costs and chosen lease-up discount magnitude accurately reflect what a typical market buyer would pay on the lien date; the assessor asked for the appellants' income and underwriting documents to assess those claims. A potential appeal to the state Board of Tax Appeals remains an option once the county commissioners issue their orders.

Next steps: the hearing examiners will caucus and send formal recommendations to the county commissioners; petitioners should expect a mailed board order with instructions for further appeal.