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General Assembly

 

Substitute Bill No. 495

    February Session, 2008

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

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 such 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 Any such tax, assessment or charge already made shall be withdrawn or reversed, and any payment made by a housing authority pursuant to such tax, assessment or charge shall be refunded to the housing authority.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 Any such increase already approved or implemented shall be withdrawn or reversed to the extent based upon such tax, assessment or charge and any payments received shall be refunded or credited to the tenant.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 it owns that is subject to section 8-71 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, as amended by this act, 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 already implemented 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.

Sec. 3. Subsections (a) and (b) of section 8-216 of the general statutes are repealed and the following is substituted in lieu thereof (Effective July 1, 2008):

(a) The state, acting by and in the discretion of the Commissioner of Economic and Community Development, may enter into a contract with a municipality for state financial assistance for housing, or any part thereof, solely for low or moderate-income persons or families, or for housing or any part thereof, on property classified by the municipality pursuant to section 8-215, for use for housing solely for low or moderate-income persons or families, in the form of reimbursement for tax abatements under said section, provided the construction or rehabilitation of such housing shall have been commenced after July 1, 1967, or, in the case of apartment buildings containing three or more stories, under construction on July 1, 1967. Such contract shall provide for state financial assistance in the form of a state grant-in-aid to the municipality not to exceed the amount of taxes abated by the municipality pursuant to section 8-215, provided no payment shall be made to any municipality under any contract entered into on or after October 1, 1973, unless the assessment on such housing or part thereof is determined as provided in section 8-216a except when such contract is a modification, amendment, or replacement of a contract already in existence on or before October 1, 1973. In such contract, the commissioner may require assurances that the amount of tax abatement will be used for the purposes stated in section 8-215, and that the commissioner shall have the right of inspection to determine that such purposes are being achieved. With respect to housing for which tax abatement has been provided pursuant to said section 8-215, such grant-in-aid shall be paid to the municipality each year, in an amount not to exceed the tax abatement for such year, as long as the housing continues to fulfill the purposes stated in said section. [, but in no case shall payments of such state financial assistance continue for more than forty consecutive fiscal years of the municipality.]

(b) The state, acting by and in the discretion of the Commissioner of Economic and Community Development, may enter into a contract with a municipality and the housing authority of the municipality or with the Connecticut Housing Finance Authority or any subsidiary created by the authority pursuant to section 8-242a or 8-244 or with a successor owner to make payments in lieu of taxes to the municipality on land and improvements owned or leased by the housing authority or the Connecticut Housing Finance Authority or successor owner under the provisions of part II of chapter 128. On and after July 1, 1997, the time period of the contract may include the remaining years of operation of the project. Such payments shall be made annually in an amount equal to the taxes that would be paid on such property were the property not exempt from taxation, and shall be calculated by multiplying the assessed value of such property, which shall be determined by the tax assessor of such municipality in the manner used by such assessor for assessing the value of other real property, by the applicable tax rate of the municipality. Such contract shall provide that, in consideration of such grant-in-aid, the municipality shall waive during the period of such contract any payments by the housing authority or the Connecticut Housing Finance Authority or successor owner to the municipality under the provisions of section 8-71, and shall further provide that the amount of the payments so waived shall be used by the housing authority or the Connecticut Housing Finance Authority or successor owner for a program of social and supplementary services to the occupants or shall be applied to the operating costs or reserves of the property, or shall be used to maintain or improve the physical quality of the property. As used in this subsection, a "successor owner" means an entity that owns a housing project developed pursuant to part II of chapter 128 after the revitalization of such project pursuant to a plan approved by the commissioner.

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

New section

Sec. 2

from passage

New section

Sec. 3

July 1, 2008

8-216(a) and (b)

PD

Joint Favorable Subst.