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 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.
(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.
(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; P.A. 06-93, S. 15; 06-196, S. 46; P.A. 08-10, S. 1.)
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 20 to 40 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; P.A. 06-93 amended Subsec. (b) by removing
reference to repealed sections; P.A. 06-196 made technical changes in Subsec. (a), effective June 7, 2006; P.A. 08-10
amended Subsec. (a) to delete provision limiting payments to 40 consecutive fiscal years and amended Subsec. (b) to add
references to successor owner, effective July 1, 2008.
See Sec. 8-226 re use of prior bond proceeds for purposes of this section.
Cited. 206 C. 711.
Tax abatement constitutes a subsidy to landlord supporting conclusion that activities of landlord are "state action" re
federal constitution. 33 CS 15.
Subsec. (b):
Cited. 12 CA 499.