OLR Bill Analysis
sSB 495 (File 177, as amended by Senate “A”)*
AN ACT CONCERNING THE PUBLIC HOUSING PILOT PROGRAM AND THE LOW AND MODERATE INCOME HOUSING TAX ABATEMENT.
This bill allows the economic and community development commissioner to continue reimbursing towns for property tax exemptions granted to moderate rental housing projects under two statutory programs.
One program allows towns to abate the property taxes on privately-owned multifamily housing if the owner agrees to keep the rents affordable to low- and moderate-income people. It also allows the commissioner to reimburse the towns that choose to do so for the revenue they forgo. Current law limits the reimbursement period to 40 consecutive fiscal years. This bill eliminates this sunset.
The other program exempts public housing authorities (PHA) from paying property taxes on moderate rental housing projects they developed with state funds and reimburses towns for the revenue loss. The bill allows the commissioner to continue reimbursing them when a private entity acquires and redevelops a project with her approval.
*Senate Amendment “A” drops provisions prohibiting towns, PHAs, and private owners from taking specified actions that could increase rents in public and privately owned low- and moderate-income housing. (These provisions were added to sHB 5031, which was enacted by the legislature and signed by the governor. )
EFFECTIVE DATE: July 1, 2008
Planning and Development Committee
Joint Favorable Substitute