[Adopted 10-16-1982 (Ch. 10, § 10-4, of the Town Code)]
As used in this article, the following terms shall have the meanings indicated:
LOW- AND MODERATE-INCOME HOUSING
Housing for the elderly, the construction or rehabilitation of which is aided or assisted in any way by any federal or state statute, which housing is subject to regulation or supervision of rents or charges and methods of operation by a governmental agency under a regulatory agreement or other instrument which restricts occupancy of such housing to elderly persons whose income does not exceed prescribed limits, and shall be deemed to include the property on which such housing is situated.
OWNER
A person or persons, partnership, joint venture, or corporation who or which has executed, or will execute, a regulatory agreement or other instrument with a governmental agency which limits occupancy to elderly persons whose income does not exceed prescribed limits.
PRESCRIBED LIMITS
The standards which the foregoing governmental agency will apply as the maximum income allowable for elderly persons who will occupy such housing, provided only that such standard is and remains acceptable to the state for purpose of reimbursement to the Town pursuant to C.G.S. § 8-216. Otherwise, "prescribed limits" shall mean that standard which the state will apply for purpose of eligibility for such reimbursement.
The Board of Selectmen may, by majority vote, enter into contracts for the Town with owners of low- and moderate-income housing granting abatement, in whole or in part, of the real property taxes on such housing, provided that such abatement need not be conditioned upon receipt of state reimbursement to the Town for such abatement; and further provided that each such contract shall require that the owner apply the money equivalent of the taxes so abated to one or more of the following specified purposes:
A. 
To reduce rents below the levels which would be achieved in the absence of abatement and to improve the quality and design of such housing;
B. 
To effect occupancy by elderly persons of varying income levels, within the prescribed limits; or
C. 
To provide necessary related facilities or services in such housing.
The abatement shall become effective on the date specified in the contract between the Town and the owner of the low- and moderate-income housing. The term of the abatement shall extend for the remainder of the fiscal year in which such abatement becomes effective and may continue for a period not to exceed 39 consecutive fiscal years thereafter or may continue for a period not to exceed 50 consecutive fiscal years thereafter, provided, in the latter case, that such contract is acceptable to the state for purpose of reimbursement pursuant to C.G.S. § 8-216 for the first 40 consecutive fiscal years thereof; provided, in either event, that such abatement shall terminate at any time when the real property for which the tax abatement had been granted is not used solely for low- and moderate-income housing.
For purposes of this article, the present true and actual value of low- and moderate-income housing on which rents and carrying charges are limited by regulatory agreement with, or otherwise regulated by, the federal or state government, or department or agency thereof, shall be based upon and shall not exceed the capitalized value of the net rental income of such housing. For purpose of this section, "net rental income" means gross income of such housing as limited by the schedule of rents or carrying charges, less reasonable operating expenses and property taxes.
A. 
In the instance of each such contract, the Board of Selectmen may, by majority vote:
(1) 
Determine the amount, to include any formula for arriving at such amount and any limitations thereon, of the abatement; and
(2) 
Reserve, in any such contract, the right to redetermine the amount of such abatement, on an annual basis, for the term of such contract.
B. 
The Board of Selectmen shall give due consideration to the purposes stated in § 218-6 hereof to which the money equivalent to the taxes so abated is to be applied.
The Town may, by a majority vote of the Board of Selectmen, enter into contracts with the state for financial assistance by the state in the form of reimbursement for all or any part of the tax abatement granted to an owner of low- and moderate-income housing in accordance with this article, but the entering into of such a contract for financial assistance need not be a condition of any tax abatement.