CT SB00897

Effective July 1, 2015, residential care homes with accumulated fair rent reimbursement for real property and land below $3.10 per day shall be reimbursed at the $3.10 per day minimum rate.

Removes previous language allowing property additions placed in service during or after cost year ending September 30, 1996 to receive separate fair rent allowances above the $3.10 per day baseline.

Establishes that costs under $10,000 for land, building, or nonmovable equipment repairs or improvements shall not be capitalized for more than five years for rate-setting purposes beginning fiscal year ending June 30, 2015.

Grants the Commissioner of Social Services discretionary authority beginning fiscal year ending June 30, 2015 to increase inflation cost limitations up to 5%, establish minimum 5% rate of return on real property, and waive standard rate of return for certain ownership changes and health/safety improvements.

Permits the Commissioner to allow actual debt service on Connecticut Housing Finance Authority loans in lieu of standard allowed property costs if the loan is reasonable relative to useful life and property cost allowances.