"AN ACT CONCERNING HOUSING PRESERVATION. "

After the last section, add the following and renumber sections and internal references accordingly:

"Sec. 501. (NEW) (Effective October 1, 2006, and applicable to assessment years commencing on or after October 1, 2006) Notwithstanding the provisions of the general statutes, the present true and actual value of real property used for residential rental purposes, where at least thirty per cent of the residential units are subject to an agreement with a municipality, the state, the federal government or any instrumentality thereof restricting occupancy of such units to tenants who qualify in accordance with an income limitation test, shall equal the capitalized value of the actual net operating income of such real property after deducting reserves required pursuant to the federal, state or municipal program under which the agreement was entered. The valuation of such real property shall not take into account federal or state income tax credits, subsidized mortgage financing, project grants or other governmental assistance used to offset the development cost of such real property. As used in this section "net operating income" means the gross rental income of the property as limited by the schedule of rents or carrying charges, less all operating expenses and property taxes but without deducting mortgage debt service or depreciation. The capitalization rate to be applied to such net operating income for the purposes of determining the true and actual value shall be the rate generally applicable to commercial residential property that is not rent restricted or government subsidized. "