2005 Connecticut Code - Sec. 8-216. State reimbursement for tax abatements. Payment in lieu of taxes on housing authority or state land.
Sec. 8-216. State reimbursement for tax abatements. Payment in lieu of taxes
on housing authority or state land. (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 said 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, so 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.
(c) The state, after it has entered into a contract with a municipality for financial assistance under this section, shall have the right to appeal or make application for relief from any assessment of any real property with respect to which reimbursement for tax abatement or a payment in lieu of taxes is made, in the manner provided by sections 12-111 to 12-119, inclusive, and no increase in assessed valuation of such property after such contract has been entered into shall be binding upon the commissioner unless notice of such increase has been given to the commissioner in the manner provided for giving notice of such an increase to the owners of real property. In any such proceeding the state shall have the same procedural rights as the owner of such property and shall act in accordance with the procedures and rules of law applicable to such owner.
(d) The state, acting by and in the discretion of the Commissioner of Economic and Community Development, may enter into a contract with a municipality to make payments in lieu of taxes to the municipality on land and improvements owned or leased by said commissioner pursuant to chapter 129. 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 any payments by the state to the municipality under the provisions of a cooperation agreement between the municipality and said commissioner.
(e) The financial assistance authorized by subsection (a) of this section shall not be extended to assist housing sponsored by a profit-motivated sponsor, unless the commissioner, upon advice by the United States Department of Housing and Urban Development or the Connecticut Housing Finance Authority shall determine that the mortgage loan financing such housing would not be insurable or feasible in the absence of such assistance.
(f) The Commissioner of Economic and Community Development may amend any contracts entered into prior to October 1, 1969, under subsection (a) of this section, by increasing, up to a maximum of forty consecutive fiscal years of the municipality, the term of reimbursement for tax abatements provided for therein.
(1967, P.A. 522, S. 19; 1969, P.A. 137, S. 1, 2; 590; 683, S. 3; 808; P.A. 73-642, S. 2; P.A. 75-312, S. 1, 2; 75-465, S. 6, 7; P.A. 77-614, S. 296, 610; P.A. 79-598, S. 17; P.A. 93-309, S. 23, 29; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 97-244, S. 2, 13; May Sp. Sess. P.A. 04-2, S. 93.)
History: 1969 acts amended Subsec. (a) to allow reimbursement for tax abatements on apartment building of at least three stories under construction on July 1, 1967, and to change limit for payments from twenty to forty consecutive fiscal years, amended Subsec. (b) to delete references to state-owned or leased land and improvements and to state payments under Sec. 8-71, to provision of cooperative agreements between municipality and state or housing authority and to chapter 129 and restated uses to which waived payments shall be put and added Subsecs. (d) to (f), inclusive, concerning state-owned or leased property, profit-motivated sponsors of housing and contract amendments to increase term for reimbursement; P.A. 73-642 amended Subsec. (a) to include housing on property classified for use for low and moderate-income housing, to state that grants-in-aid not exceed amount of abatement rather than that they equal abatements and added proviso governing contracts on or after October 1, 1973; P.A. 75-312 amended Subsec. (e) to replace advice of Federal Housing Administration with advice of Department of Housing and Urban Development or Connecticut Housing Finance Authority and to allow assistance if financing not otherwise "feasible"; P.A. 75-465 amended Subsec. (b) to allow use of amount of waived payment for operating costs or for maintaining and improving property; P.A. 77-614 specified commissioner of economic development, previously "commissioner" applied to commissioner of community affairs, effective January 1, 1979; P.A. 79-598 substituted commissioner of housing for commissioner of economic development; P.A. 93-309 amended Subsec. (b) by adding provision authorizing payments on land or improvements leased or owned under the provision of Sec. 8-433 to 8-437, inclusive, effective July 1, 1993; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Housing with Commissioner and Department of Economic and Community Development; P.A. 97-244 amended Subsec. (b) to provide that time of the contract may include remaining years of operation of the project, effective July 1, 1997; May Sp. Sess. P.A. 04-2 amended Subsec. (b) by adding references to Connecticut Housing Finance Authority or subsidiary created by the authority under Sec. 8-242a or 8-244, effective May 12, 2004.
See Sec. 8-226 re use of prior bond proceeds for purposes of this section.
Cited. 206 C. 711, 726.
Tax abatement constitutes a subsidy to landlord supporting conclusion that activities of landlord are "state action" re federal constitution. 33 CS 15, 17.
Subsec. (b):
Cited. 12 CA 499, 506, 507.
