Town of Simsbury, CT Article III Tax Abatement for Housing of Low- or Moderate-Income Persons

[Adopted 6-24-1991]

§ 141-5 Purpose.

Pursuant to Connecticut General Statutes Section 8-215, the Town of Simsbury is hereby authorized and empowered to abate, in part or in whole, the real property taxes on "housing solely for low- or moderate-income persons or families" as that phrase is defined in Connecticut General Statutes Section 8-202 (c) and as the same may be amended from time to time in accordance with the provisions of § 141-6 hereof.

§ 141-6 Contract requirements.

Such abatement shall be made pursuant to a contract between the Town acting by and through its Board of Selectmen, who are hereby authorized and empowered to negotiate and execute such contracts on behalf of the Town, and the owner of any such housing. The contract need not be conditioned upon state reimbursement to the Town for such abatement but shall provide:

A. The terms of such abatement;

B. That such abatement shall terminate at any time when such housing is not solely for low- or moderate-income persons or families as defined in § 141-5 hereof; and

C. That moneys equal to the amount of such abatement shall be used by said owner for one or more of the following purposes.

(1) 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;

(2) To effect occupancy of such housing by persons and families of varying income levels within limits determined by the Commissioner of the Connecticut Department of Housing by regulation; or

(3) To provide necessary related facilities or services in such housing.

§ 141-7 Classification of property.

Any property which is the subject of such a contract shall, for as long as the contract continues in effect, be classified for the purposes of this article III as property used for housing solely for low- or moderate-income persons or families as defined in § 141-5 hereof.

§ 141-8 Determination of property values.

The present true and actual value of the real property, classified as set forth in § 141-7 hereof, on which rents or 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 the housing project. For purposes of this article, such "net rental income" means the gross income of the project, as limited by the schedule of rents or carrying charges, less reasonable operating expenses and property taxes or such other definition of "net rental income" as may be provided in this article or in any other applicable law, regulation or ordinance from time to time.

§ 141-9 State reimbursement or payment.

The Town, acting by and through the Board of Selectmen, is hereby authorized and empowered to enter into agreements with respect to state reimbursement for tax abatements or state payment in lieu of taxes, as provided in Connecticut General Statutes Section 8-216, as the same may be amended from time to time.