CT HB05399

Municipalities may abate real property taxes on housing exclusively for low or moderate-income persons or families through municipal ordinance and contract with property owners.

Tax abatements must be used to reduce rents, improve housing quality and design, achieve mixed income occupancy levels, or provide related facilities and services.

Municipalities shall continue abating taxes on qualifying properties from July 1, 2016 through June 30, 2018, at levels not exceeding the abatement amount granted in fiscal year 2015, provided the housing still serves low or moderate-income residents.

Municipalities that received grant-in-aid funding in fiscal year 2015 must waive payments in lieu of taxes from July 1, 2016 through June 30, 2018, except when federal funding is available for such payments.

Housing authorities' annual payments to municipalities for moderate rental housing projects are capped at 12.5% of shelter rent per occupied unit, unless federal funds are available for higher payments.