COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Counsel

DATE:

March 4, 2010

BOARD MEETING DATE:

March 23. 2010

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

County Counsel

SUBJECT:

Correction of Property Tax Roll:

APN 039-351-250; 2901 El Camino Real, San Mateo

MP San Mateo Transit Associates: Housing Welfare Exemption

RECOMMENDATION:

Approve a correction to the 2009 property tax rolls to correct for a welfare exemption related to APN 039-351-250, located at 2901 El Camino Real, San Mateo (the “Property”).

BACKGROUND:

Revenue and Taxation Code sections 4831, et seq., allow for the correction of tax roll errors due to incorrect information or mistaken entries. The errors may be caused by defects or delays in information or descriptions provided by assessees, unknown economic or historical information, duplication of assessments or simple clerical or mathematical errors by the assessee or the Assessor, or both. It is not uncommon for new or corrected information, including exemption applications and approvals, to be presented or provided to the Assessor after values have been enrolled. Corrections, cancellations or refunds of ad valorem property taxes above $50,000 require Board approval.

DISCUSSION:

MP San Mateo Transit Associates (the “Developer”) purchased the Property on November 30, 2006, in connection with the development of a mixed use low-income family apartment project commonly known as Peninsula Station. Construction began at the Property on March 19, 2009 and the project is still under construction. On January 19, 2010, Mid-Peninsula Greenridge, Inc. and MP San Mateo Transit Associates LP (the general partner and the limited partner, respectively, of the Developer) applied for the low-income housing welfare exemption pursuant to section 214 of the Revenue and Taxation Code.

After review of the welfare claim, the Assessor has found that all requirements for the low-income housing welfare exemption have been met and approval of the roll correction for the 2009 annual tax rolls is requested. This action approving the roll correction allows for the correction of the tax roll to reflect the exemption. Authorizing this correction of the property tax roll will contribute to the Shared Vision 2025 outcome of collaborative community by demonstrating fiscal accountability.

FISCAL IMPACT:

The fiscal impact of this roll correction is a $5,514,120 decrease in the 2009 tax roll, and an associated refund of $60,583.62, plus interest, to MP San Mateo Transit.