MPAC assessments leaving some Ottawa residents confused

Check your mailbox — you may be in for a surprise about the value of your house. That's especially true in the wards of Kitchissippi and Rideau-Goulbourn, which have seen the city's biggest increases in property values.

The Municipal Property Assessment Corporation, or MPAC, assessments are starting to arrive. And they're leaving some people with a lot of questions. 

We were assessed at about $60,000 more than what an attached house sold for just a few months ago.- Glebe resident Mark Blevis

At least one homeowner is appealing his assessment because he thinks it's more than he could actually get if he sold it. 

Mark Blevis's rowhouse in the Glebe went up 12 per cent in value from his last assessment in 2012.

He says it doesn't match his neighbour's experience on the housing market.

"We were assessed at about $60,000 more than what an attached house sold for just a few months ago," says Blevis.

According to MPAC numbers, property values rose 3.6 per cent on average in Ottawa since the last assessment. That's a less dramatic jump than last time around when the city-wide average was more than 25 per cent.

On average, Kitchissippi residents face the steepest increase in assessments. The average in the ward is seven per cent, but some hikes are much higher. Neighbourhoods like Hintonburg in particular are seeing above-average increases in the order of 14 and 15 per cent.

Property tax worries

Kitchissippi Ward Coun. Jeff Leiper wants targeted tax relief for people on fixed incomes. Otherwise he says the character of his ward could change.

"I'm not sure that the city is going to be able to help a lot. There are going to be some hard realities about whether or not people are going to be able to stay in their homes."

Rideau-Goulbourn had the second highest jump in property values at about five per cent.

That's because of development in Richmond and Manotick and speculation about what's to come. Much of Rideau-Goulbourn is expected to be developed in the coming years.

While the full impact of MPAC on property taxes isn't going to be known until the fall, Coun. Scott Moffat says it's a reminder of the need for discipline on part of City Hall. 

In December, Ottawa city council approved a 2016 budget that capped an increase in the city's residential property tax rate at two per cent.

"These types of things make it more incumbent on us to stick to a commitment of two per cent because if we increase it to four or five per cent it's an even harder increase on those that are impacted negatively by the assessments," says Moffat.

Fourteen of the city's 23 wards saw increases less than the Ottawa average. The downtown Somerset Ward's average property assessments actually decreased by 0.2 per cent, largely due to the stagnant condo market.

Time to appeal

Ilia Fabbri, a real estate agent with Royal LePage Performance Realty, said if you feel your assessment is out of line with your property's actual value, be sure to appeal before the deadline printed on your notice. And if you think your house is undervalued ahead of a possible sale, talk to a professional, she added.

"The Ottawa real estate market has changed since the last municipal assessments in 2012. Condo sales are struggling, but the million dollar home in Ottawa is no longer a rarity and these factors will impact the valuations of thousands of properties," says Fabbri.

MPAC values Ontario properties every four years for municipal tax purposes. The agency looks at five criteria: location; lot size; amount of living space, age of home and quality of construction. However the single largest factor in assessing a home is the recent selling prices of nearby real estate.

"It is important for homeowners to understand the MPAC assessment does not necessarily reflect the market value of their home. That is to say, what a potential buyer would pay for it," says Fabbri.