[Adopted 12-21-1977 (Ord. No. 47A); amended 8-16-1978]
For the purpose of this article, the following
terms shall have the meanings indicated:
Housing, 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, charges or sales
prices and methods of operation by a governmental agency under a regulatory
agreement or other instrument which restricts occupancy of such housing
to persons or families whose incomes do not exceed prescribed limits,
and shall be deemed to include the property on which such housing
is situated.
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
of the low- and moderate-income housing owned or to be owned by such
person or persons, partnership, joint venture or corporation to persons
or families whose incomes do not exceed prescribed limits.
The Legislative Council, after review and approval
of contracts, may, by a majority vote, authorize the Board of Selectmen
to 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 may, at the election
of the Legislative Council, be conditioned upon receipt of state reimbursement
to the Town for such abatement; and provided, further, 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:
(i) to reduce rents below the levels which would be achieved in the
absence of abatement; (ii) to improve housing quality and design;
(iii) to effect occupancy by persons and families of varying income
levels, within prescribed limits; or (iv) to provide necessary related
facilities. The amount of such abatement shall be established in each
such contract, giving due consideration to the purpose or purposes
to which the money equivalent of the taxes so abated is to be applied.
The abatement shall become effective on the
date specified in the contract between the Town and the owner of 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; provided that such abatement shall terminate
at any time when the property for which tax abatement had been granted
is not used solely for low- and moderate-income housing. Such abatement
may also be terminated at the election of the Legislative Council
at any time when reimbursement by the State of Connecticut in full
for the taxes lost through such abatement ceases.
For the purposes of determining the amount of
taxes to be abated as aforesaid, 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 value computed by the capitalization of income method;
provided that for the purposes of this section, "income" shall mean
gross income as limited by the schedule of rents or carrying charges,
less reasonable operating expenses and property taxes.
The Town of Newtown may, by a majority vote
of the Legislative Council, 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.
