Sec. 12-65e. Agreements to fix assessments during, and defer increases following, rehabilitation or construction. Required provisions.
Sec. 12-65e. Agreements to fix assessments during, and defer increases following, rehabilitation or construction. Required provisions. Any municipality which
has adopted a resolution, in accordance with the provisions of section 12-65d, designating such municipality or any part thereof as a rehabilitation area, may, upon application
of the owner of any real property located in such area who agrees to rehabilitate such
property or construct new multifamily rental housing or cooperative housing on such
property, enter into an agreement to fix the assessment of the property, during the period
of rehabilitation or construction, as of the date of the agreement, but for not longer than
seven years, and upon completion of such rehabilitation or construction, to defer any
increase in assessment attributable to such rehabilitation or construction for a period
not to exceed eleven years, contingent upon the continued use of the property for the
purposes specified in the agreement, provided such property meets the criteria established by such municipality in accordance with section 12-65d and provided further
such deferral shall be determined as follows: For the first year following completion of
such rehabilitation or construction, the entire increase shall be deferred; thereafter a
minimum of ten per cent of the increase shall be assessed against the property each year
until one hundred per cent of such increase has been so assessed. The agreement shall
provide that, in the event of a general revaluation by the municipality in the year in
which such rehabilitation or construction is completed resulting in any increase in the
assessment on such property, only that portion of the increase resulting from such rehabilitation or construction shall be deferred; and in the event of a general revaluation in
any year after the year in which such rehabilitation or construction is completed, such
deferred assessment shall be increased or decreased in proportion to the increase or
decrease in the total assessment on such property as a result of such general revaluation.
Such agreement shall further provide that such rehabilitation or construction shall be
completed by a date fixed by the municipality and that the completed rehabilitation or
construction shall be subject to inspection and certification by the local building official
as being in conformance with the criteria established under section 12-65d and such
provisions of the state building and health codes and the local housing code as may
apply. Any such tax deferral shall be contingent upon the continued use of the property
for those purposes specified in the agreement creating such deferral and such deferral
shall cease upon the sale or transfer of the property for any other purpose unless the
municipality shall have consented thereto.
(P.A. 73-588, S. 3; P.A. 74-190, S. 2, 3; P.A. 79-607, S. 19, 22.)
History: P.A. 74-190 specified that deferrals for rehabilitation are contingent upon continued use for purposes specified
in agreement and provided that deferral cease upon sale or transfer of property unless consent of municipality obtained,
previously deferral ceased without exception; P.A. 79-607 included construction of new multifamily rental housing or
cooperative housing.
Cited. 17 CA 166.