Article III Tax Assessment for Elderly Housing Projects Limited by Federal or State Regulatory Agreements
[Adopted 8-1-2000 (Sec. 15-32 of the 1996 Code); amended in its entirety 4-6-2004]
For so long as the United States department now entitled "Housing and Urban Development" operates its HUD 202 PRAC (Project Rental Assistance Contract) or other similar programs or for so long as the State of Connecticut operates its programs through the Connecticut Housing Finance Authority (“CHFA”) for the development of housing for elderly persons age 55 or older with low or moderate incomes as determined by HUD or CHFA, from time to time, or for projects that exist as originally planned and funded under said programs, the Town of Manchester may assess property taxes for property used for housing solely for low- or moderate-income elderly persons on which rents or carrying charges are limited by regulatory agreements with, or otherwise regulated, by HUD or CHFA within the Town of Manchester according to Connecticut General Statutes § 8-216a, using the capitalized value of net rental income basis for property valuation.
Therefore, the Director of Assessment of the Town of Manchester may determine the value of said projects for which rents or carrying charges are limited by regulatory agreements for property tax purposes based upon, and shall not exceed, the capitalized value of the net rental income of the housing project. Such net rental income means the gross income of the project as limited by the HUD 202 PRAC or similar programs or by a CHFA schedule of rents or carrying charges, less reasonable operating expenses and property taxes. Any valuation for assessment purposes calculated pursuant to this article shall only be in effect while the project is directly receiving HUD 202 PRAC or similar funding provided in § 285-27 above or is subject to a CHFA regulatory agreement.
The Director of Assessment shall not implement any such valuation pursuant to this article without a written agreement executed between the Town of Manchester and the taxpaying entity owning such a project, which agreement shall include guidelines to determine net rental income for purposes of § 285-28 herein.