LCO No. 2725 1 of 2 General Assembly Raised Bill No. 880 January Session, 2021 LCO No. 2725 Referred to Committee on HOUSING Introduced by: (HSG) AN ACT CONCERNING PA YMENTS IN LIEU OF TAXES TO MUNICIPALITIES FOR HOUSING AUTHORITIES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective October 1, 2021) (a) As used in this section, 1 "housing authority" means any of the public corporations created by 2 section 8-40 of the general statutes, and the State Housing Authority 3 when exercising the rights, powers, duties or privileges of, or subject to 4 the immunities or limitations of, housing authorities pursuant to section 5 8-121 of the general statutes, the property of which is exempt from 6 property tax under any provision of chapter 128 of the general statutes 7 and "municipality" means any town, consolidated town and city, 8 consolidated town and borough, borough, district, as defined in section 9 7-324 of the general statutes, and any city not consolidated with a town. 10 (b) On or before January first, annually, the Secretary of the Office of 11 Policy and Management shall determine the amount due to each 12 municipality in the state, in accordance with this section, as a state grant 13 in lieu of taxes with respect to real property and improvements on such 14 property owned or leased by any housing authority for affordable 15 Raised Bill No. 880 LCO No. 2725 2 of 2 housing purposes to receive payments in lieu of taxes for such property 16 and improvements, exclusive of any such property operated by the 17 federal government. 18 (c) The grant payable to any municipality under the provisions of this 19 section in the state fiscal year commencing July 1, 2023, and in each fiscal 20 year thereafter, shall be equal to seventy-seven per cent of the property 21 taxes which, except for any exemption applicable to any such housing 22 authority property under the provisions of chapter 128 of the general 23 statutes, would have been paid with respect to such exempt real 24 property on the assessment list in such municipality for the assessment 25 date two years prior to the commencement of the state fiscal year in 26 which such grant is payable. The amount of the grant payable to each 27 municipality in any year in accordance with this section shall be reduced 28 proportionately in the event that the total of such grants in such year 29 exceeds the amount appropriated for the purposes of this section with 30 respect to such year. 31 (d) The provisions of this section shall not apply to any municipality 32 that is party to a contract under subsection (b) or (d) of section 8-216 of 33 the general statutes and receiving payments in lieu of taxes pursuant to 34 such contract during the term of such contract. 35 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2021 New section Statement of Purpose: To provide municipalities in which a housing authority is located with payments in lieu of taxes. [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.]