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Substitute House Bill No. 5031

Special Act No. 08-1

AN ACT CONCERNING PAYMENT IN LIEU OF TAXES FOR PUBLIC HOUSING AND THE LOW AND MODERATE INCOME TAX ABATEMENT PROGRAM.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (Effective from passage) (a) Notwithstanding the provisions of section 8-71 of the general statutes, for the one-year period ending June 30, 2008, no payment otherwise due to any municipality under said section 8-71 shall be due from any housing authority. No municipality may impose or collect any tax, assessment or charge in lieu of any payment otherwise due to the municipality under said section for such period. Any such tax, assessment or charge already made shall be withdrawn or reversed, and any payment made by a housing authority pursuant to such tax, assessment or charge shall be refunded to the housing authority.

(b) Notwithstanding the provisions of the general statutes or any public or special act, for the one-year period ending June 30, 2008, no housing authority shall increase the base or percentage rent of any tenant based upon the actual or anticipated tax, assessment or charge described in subsection (a) of this section and the Connecticut Housing Finance Authority or the Commissioner of Economic and Community Development shall not approve any such increase. Any such increase approved or implemented on or before the effective date of this section shall be withdrawn or reversed to the extent based upon such tax, assessment or charge and any payments received shall be refunded or credited to the tenant.

(c) For the purposes of this section, the Connecticut Housing Finance Authority shall be deemed to be a housing authority in relation to any property owned by the authority that is subject to section 8-71 of the general statutes.

(d) The provisions of this section shall not apply unless for the one-year period ending June 30, 2008, an amount in excess of two million dollars has been appropriated to the Department of Economic and Community Development for the purpose of carrying out the provisions of the public housing payment in lieu of taxes program established under subsection (b) of section 8-216 of the general statutes.

Sec. 2. (Effective from passage) (a) Notwithstanding the provisions of the general statutes or any public or special act, for the one-year period ending June 30, 2008, no municipality that, for the fiscal year ending June 30, 2007, received payment pursuant to subsection (a) of section 8-216 of the general statutes, shall impose or collect any tax, assessment or charge in lieu of payment pursuant to such subsection (a) on the owner of any housing for which payments would have been made during the one-year period ending June 30, 2008, but for which no appropriations were made available in public act 07-1 of the June special session. Any such tax, assessment or charge made shall be withdrawn or reversed, and any payment made by such owner pursuant to such tax, assessment or charge shall be refunded to owner.

(b) Notwithstanding the provisions of the general statutes or any public or special act, for the one-year period ending June 30, 2008, no owner of housing described in subsection (a) of this section shall increase the rent of any tenant based upon the actual or anticipated tax, assessment or charge described in subsection (a) of this section. Any such increase implemented on or before the effective date of this section shall be withdrawn or reversed to the extent based upon such tax, assessment or charge and any payments received shall be refunded or credited to the tenant.

(c) The provisions of this section shall not apply unless for the one-year period ending June 30, 2008, an amount in excess of one million three hundred thousand dollars has been appropriated to the Department of Economic and Community Development for the purpose of carrying out the provisions of the low and moderate income tax abatement program established under subsection (a) of section 8-216 of the general statutes.

Sec. 3. (Effective from passage) The sum of two million two hundred four thousand dollars appropriated to the Department of Social Services in section 1 of public act 07-1 of the June special session, for Housing/Homeless Services, is transferred to the Department of Economic and Community Development, for the fiscal year ending June 30, 2008, for Payment in Lieu of Taxes, for the program established under subsection (b) of section 8-216 of the general statutes.

Sec. 4. (Effective from passage) The sum of one million seven hundred four thousand eight hundred ninety dollars appropriated to the Department of Social Services in section 1 of public act 07-1 of the June special session, for Housing/Homeless Services, is transferred to the Department of Economic and Community Development, for the fiscal year ending June 30, 2008, for Tax Abatement, for the program established under subsection (a) of section 8-216 of the general statutes.

Approved April 4, 2008