LCO No. 4076 1 of 3 General Assembly Committee Bill No. 6240 January Session, 2021 LCO No. 4076 Referred to Committee on HOUSING Introduced by: (HSG) AN ACT CONCERNING PA YMENT IN LIEU OF TAXES FOR STATE HOUSING AUTHORITY PROPERTIES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsection (b) of section 8-216 of the general statutes is 1 repealed and the following is substituted in lieu thereof (Effective October 2 1, 2021): 3 (b) The state, acting [by and in the discretion of] through the 4 Commissioner of Housing, [may] shall enter into a contract with a 5 municipality and the housing authority of the municipality or with the 6 Connecticut Housing Finance Authority or any subsidiary created by 7 the authority pursuant to section 8-242a or 8-244 or with a successor 8 owner to make payments in lieu of taxes to the municipality on land and 9 improvements owned or leased by the housing authority or the 10 Connecticut Housing Finance Authority or successor owner under the 11 provisions of part II of chapter 128. On and after July 1, 1997, the time 12 period of the contract may include the remaining years of operation of 13 the project. Such payments shall be made annually in an amount equal 14 to the taxes that would be paid on such property were the property not 15 exempt from taxation, and shall be calculated by multiplying the 16 Committee Bill No. 6240 LCO No. 4076 2 of 3 assessed value of such property, which shall be determined by the tax 17 assessor of such municipality in the manner used by such assessor for 18 assessing the value of other real property, by the applicable tax rate of 19 the municipality. Such contract shall provide that, in consideration of 20 such grant-in-aid, the municipality shall waive during the period of 21 such contract any payments by the housing authority or the Connecticut 22 Housing Finance Authority or successor owner to the municipality 23 under the provisions of section 8-71, and shall further provide that the 24 amount of the payments so waived shall be used by the housing 25 authority or the Connecticut Housing Finance Authority or successor 26 owner for a program of social and supplementary services to the 27 occupants or shall be applied to the operating costs or reserves of the 28 property, or shall be used to maintain or improve the physical quality 29 of the property. As used in this subsection, a "successor owner" means 30 an entity that owns a housing project developed pursuant to part II of 31 chapter 128 after the revitalization of such project pursuant to a plan 32 approved by the commissioner. 33 Sec. 2. Subsection (d) of section 8-216 of the general statutes is 34 repealed and the following is substituted in lieu thereof (Effective October 35 1, 2021): 36 (d) The state, acting [by and in the discretion of] through the 37 Commissioner of Housing, [may] shall enter into a contract with a 38 municipality to make payments in lieu of taxes to the municipality on 39 land and improvements owned or leased by said commissioner 40 pursuant to chapter 129. Such payments shall be made annually in an 41 amount equal to the taxes that would be paid on such property were the 42 property not exempt from taxation, and shall be calculated by 43 multiplying the assessed value of such property, which shall be 44 determined by the tax assessor of such municipality in the manner used 45 by such assessor for assessing the value of other real property, by the 46 applicable tax rate of the municipality. Such contract shall provide that, 47 in consideration of such grant-in-aid the municipality shall waive any 48 payments by the state to the municipality under the provisions of a 49 Committee Bill No. 6240 LCO No. 4076 3 of 3 cooperation agreement between the municipality and said 50 commissioner. 51 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2021 8-216(b) Sec. 2 October 1, 2021 8-216(d) Statement of Purpose: To provide municipalities with payment in lieu of taxes for state housing authority properties. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] Co-Sponsors: REP. JOHNSON, 49th Dist.; SEN. FLEXER, 29th Dist. REP. SMITH, 48th Dist.; REP. GODFREY, 110th Dist. REP. MICHEL, 146th Dist.; REP. HUGHES, 135th Dist. REP. GUCKER, 138th Dist.; REP. ELLIOTT, 88th Dist. REP. PORTER, 94th Dist. H.B. 6240