[Adopted 2-7-2022]
As used in this article, the following terms shall have the
meanings indicated:
A dwelling unit for persons and families whose income does
not exceed 80% of the median income for the area, adjusted for family
size, ("AMI") as determined by the United States Department of Housing
and Urban Development (H.U.D.) and can be sold or rented, as applicable,
at the following prices: in the case of rentals, a mean monthly contract
rent, including utilities, that does not exceed 30% of the income
of a family whose income is at 80% of AMI or, in the case of homeownership,
monthly housing expenses (as defined below) that do not exceed 30%
of the income of a family whose income is at 80% of AMI. Title to
any project or property receiving a tax abatement under this article
shall be subject to deed covenants or restrictions in such form as
provided by the Connecticut Department of Housing or other applicable
regulatory authority, as may be amended from time to time, which shall
prescribe a satisfactory method of future enforcement and shall require
that such affordability restrictions shall be maintained for at least
40 years after the initial occupation of a proposed rental development
or, in the case of a homeownership project, for a period of 40 years
or such lesser affordability period as may be required by the Connecticut
Department of Housing, H.U.D. or other applicable regulatory authority.
A.
Classification; authorization for abatement contract.
(1)
Upon the written request of any not-for-profit entity recognized as exempt from taxation under the Internal Revenue Code or any governmental entity or quasi-governmental entity that is a developer or owner of property used solely for 1) rental housing that meets the definition of "affordable housing units" in § 247-45, above, or 2) affordable housing units as set forth in § 247-45, above, to be purchased and occupied by low- or moderate-income persons or families, the Town, by majority vote of its Board of Selectmen, may classify such property as "property used solely for low- or moderate-income persons or families" (the "property") and may authorize a contract for the abatement, in whole or in part, of real property taxes for such property, all in accordance with the provisions of Sections 8-215 et seq. and 8-30g et seq. of the Connecticut General Statutes as may be amended from time to time (the "abatement contract").
(2)
Prior to requesting such classification and abatement, the developer
and/or owner must obtain all necessary approvals from the Planning
and Zoning Commission and other Town Boards and Commissions as applicable.
(3)
Any such classification and abatement shall be conditioned on any
prior conditions placed on the development by any Town board or commission
approval and/or any conditions of state and/or federal financing approval
relating to affordability.
(4)
The property shall comply in all respects with applicable housing
and/or building codes and all applicable Connecticut and federal statutes
and/or regulations;
(5)
The developer and/or owner shall provide a certification with its/their
request itemizing the difference between the real property taxes on
the property without an abatement and the real property taxes with
the abatement and shall further certify that the savings provided
by the abatement shall be used for one or more of the following purposes:
(a)
To reduce rents below the levels which would be achieved in
the absence of such abatement and to improve the quality and design
of such housing;
(b)
To effect occupancy of such housing by persons and families
of varying income levels within limits determined by the Commissioner
of Housing by regulation; or
(c)
To provide necessary related facilities or services in such
housing.
(6)
Monthly housing expenses shall include mortgage principal and interest,
real property taxes; real property insurance, any required common
interest ownership fees and heat and utility costs, excluding television,
telecommunications and information technology services.
B.
Required contract terms.
(1)
The abatement contract shall provide 1) the terms of such abatement, 2) that monies equal to the amount of such abatement shall be used for any one or more of the purposes stated in Subsection A(5), above, and 3) that such abatement shall terminate at any time when such housing is not used solely for low- or moderate-income persons or families.
(2)
Additional terms.
(a)
The abatement contract shall further provide that:
[1]
Such housing is built with financial subsidies from state or
federal housing programs; and
[2]
Such housing is used solely for persons or families of low-
or moderate-income, as defined by regulations issued by the state
(including DOH), H.U.D. or other applicable regulatory authority;
and
[3]
The eligibility determinations and income assessments shall
be handled and approved as required by DOH, H.U.D or other applicable
regulatory authority; and
[4]
The term of abatements may continue for a period not to exceed
20 consecutive fiscal years, except that longer periods may be agreed
upon if extended opportunities for reimbursement to the Town by the
state or by the United States are made available pursuant to law.
(b)
In those instances where the Town, as a condition precedent
to granting tax abatement, will be seeking reimbursement in the form
of grant-in-aid by the state, pursuant to C.G.S. Sections 8-215 et
seq., as may be amended from time to time, the terms of the abatement
contract shall be conditioned upon its approval by the Commissioner
of the Department of Housing.
(c)
Throughout the term of the abatement contract, the developer/owner
shall cooperate with the Town in connection with any Town application
for reimbursement from the state.
(3)
The owner shall permit the Town to inspect the property for any reasonable purpose, including determining that the property and the savings are being used for the purposes stated in Subsection A(5) of this section and stated in Connecticut General Statutes Sections 8-215 et seq., as may be amended from time to time.
(4)
The real property taxes that would be levied against the property
in the absence of the abatement shall continue to be calculated on
an annual basis by the Assessor.
(5)
The abatement contract shall be assignable to all successors and
assigns of the developers or owners, provided that 1) all conditions
of this section have been, and continue to be met, 2) the successor
or assignee is a nonprofit entity recognized as exempt from taxation
under the Internal Revenue Code or is a governmental or quasi-governmental
entity that is a developer or owner of property, and 3) notice of
any change in ownership of the property is properly filed with the
Town Clerk and on Town land records.
(6)
The failure of a developer or owner or any of its successors or assigns
to construct the affordable housing units or to maintain the affordable
housing units in accordance with all terms and conditions of the abatement
contract shall constitute reason not to commence, to temporarily or
permanently cease, and/or to obtain reimbursement from the developer
or owner for any or all of the proceeds and/or savings realized under
the abatement contract.
