OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www. cga. ct. gov/ofa

sSB-495

AN ACT CONCERNING THE PUBLIC HOUSING PILOT PROGRAM AND THE LOW AND MODERATE INCOME HOUSING TAX ABATEMENT.

As Amended by Senate "A" (LCO 3958)

Senate Calendar No. : 153

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 09 $

FY 10 $

Department of Economic & Community Development

GF - Cost

Potential

Potential

Note: GF=General Fund

Municipal Impact:

Municipalities

Effect

FY 09 $

FY 10 $

Various Municipalities

Revenue Impact

See Below

See Below

Explanation

The bill could result in a continuation of abatement costs by removing the forty year limit under which the Department of Economic and Community Development (DECD) can make a payment to certain municipalities for the property tax revenue they forgo. Fifty-seven existing contracts, receiving state reimbursements totaling $1. 7 million in FY 07, are set to expire between 2009 and 2017.

The bill also expands reimbursement eligibility to include successor owners, potentially continuing reimbursement costs. Successor owners are entities that own specific housing projects after they are revitalized according to a plan approved by the DECD commissioner.

Senate “A” removes the potential revenue loss to municipalities associated with refunding payments collected in FY 09 in lieu of the state reimbursement under the moderate rental housing Payment-in-Lieu-of-Taxes and the Tax Abatement programs.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose.