While rental properties are an important and necessary component of the Rye housing stock, some real estate companies may be taking advantage of zoning and assessment loopholes in ways that negatively impact the community.
For example, an Armonk based development company has amassed a significant rental home portfolio in the City of Rye. Currently this company is renting 20 family-purposed homes consisting of 66 bedrooms that can accommodate between thirty and forty school age children. This company pays approximately $125,891 dollars in RCSD school taxes annually, enough to cover only 5.7 children ( source: City of Rye Roll, egovlink.com, RCSD Budget, ryecityschools.schoolfusion.us).
The unrecovered cost of these twenty homes to the Rye City School District is approximately $640,000 annually. Furthermore, while the company is only paying a small share of taxes, it is able to charge premium rents (approximately $1.6 million annually) due, in part, to the outstanding reputation of the Rye schools (source: zillow.com). Taken together, the Armonk based development company is costing the Rye community $640,000 annually, while capitalizing on Rye’s outstanding reputation.
Looking forward, a master plan, improved zoning and revised assessment guidelines may help mitigate the current imbalance and better ensure a sustainable community going forward.