Delhi Estates, Ltd. v. Hamilton Cty. Bd. of Revision, 92-1367

• Decision Date: 02 February 1994
• Docket Number: No. 92-1367,92-1367
• Citation: 625 N.E.2d 594,68 Ohio St.3d 192
• Parties: DELHI ESTATES, LTD., Appellant, v. HAMILTON COUNTY BOARD OF REVISION et al., Appellees.
• Court: Ohio Supreme Court

Page 192

68 Ohio St.3d 192

625 N.E.2d 594

DELHI ESTATES, LTD., Appellant, v. HAMILTON COUNTY BOARD OF REVISION et al., Appellees.

No. 92-1367.

Supreme Court of Ohio.

Submitted March 19, 1993.

Decided Feb. 2, 1994.

Appellant, Delhi Estates, Ltd. ("Delhi"), operates Delhi Estates, a subsidized apartment complex for the elderly, located at 5320 Delhi Pike, Cincinnati, Ohio. The property is a three-story brick veneer apartment building containing sixty-five one-bedroom units, eight one-bedroom handicap units and one two-bedroom unit, on a 5.269-acre tract. For tax year 1987, the Hamilton County Auditor ("auditor") determined the true value of the subject property to be $2,086,690. That value was affirmed by the Hamilton County Board of Revision ("board of revision") and Delhi appealed to the Board of Tax Appeals ("BTA").

Delhi relied upon the appraisal evidence of an expert appraiser, John Garvin, and the board of revision presented the testimony of Marlene McDaniel, the auditor's senior appraiser. Both appraisers used multiple approaches to value. Both relied in the main on the income approach to value and estimated the true or fair market value to be $1,030,000 and $2,100,000, respectively.

The BTA criticized Delhi's evidence because its appraiser used "comparables that vary substantially from the subject property," and because the operating expenses he used were based on actual operating statements. Thus, the BTA found Delhi did not sustain its burden of proving its right to a reduction in value.

The cause is now before this court upon an appeal as of right.

Arter & Hadden and Karen H. Bauernschmidt, Cleveland, for appellant.

Joseph T. Deters, Hamilton County Pros. Atty., and Thomas J. Scheve, Asst. Pros. Atty., for appellees.

PER CURIAM.

This is another appeal involving the determination of the true value of subsidized real property. We affirm the decision of the BTA.

The parties to the appeal apparently concede the applicability of Alliance Towers, Ltd. v. Stark Cty. Bd. of Revision (1988), 37 Ohio St.3d 16, 523 N.E.2d 826, and related cases, but each levels criticism at the opponent's appraisal.

The BTA stated: "[T]he income approach is the most appropriate method of valuation to use in the calculation of value on an income-producing property."

The BTA found:

"Specifically, with regard to valuation of subsidized housing, the Supreme Court held that when employing the income approach, 'economic rent is a proper consideration in a situation in which contract rent is not truly reflective of true value in money,' e.g., subsidized housing, Canton Towers, Ltd. v. [Stark Cty.] Bd. of Revision (1983), 3 Ohio St.3d 4 [3 OBR 302, 444 N.E.2d 1027]."

That sets the proper focus for our review of the BTA decision. Delhi disputed the BTA's valuation, and, as we stated in Crow v. Cuyahoga Cty. Bd. of Revision (1990), 50 Ohio St.3d 55, 57, 552 N.E.2d 892, 893: "Appellant ha[s] the duty to prove his right to a reduction in value * * *." See, also, W. Industries, Inc. v. Hamilton Cty. Bd. of Revision (1960), 170 Ohio St. 340, 10 O.O.2d 427, 164 N.E.2d 741.

While the BTA rejected Delhi's appraisal "as being non-reflective of the subject property," it likewise, but without comment, did not accept the second appraisal submitted by the board of revision. Instead, the BTA stated "the values assessed by the auditor and affirmed by the board of revision most accurately reflect the fair market value of the subject property" and found the true value of the property for 1987 to be $2,086,690. We cannot say that the decision of the BTA, in ratifying the original true value determination of the board of revision, was unreasonable or unlawful.

That should end the matter, but, because the primary issue has been presented to us repeatedly, our specific holding will be restated. We confirm the test set forth in Alliance Towers, supra. To determine the true value of federally subsidized housing under R.C. 5713.03, "[...