In 2024, the Connecticut General Assembly passed a bill modifying the tax assessment structure for affordable housing developments, specifically for low and moderate-income housing. Public Act No. 24-143, Sec. 9, which was effective October 1, 2024, instructs towns and cities on how to value affordable housing properties for property tax assessment purposes.
Starting October 1, 2024, towns and cities must value affordable housing based on “the capitalized value of the net rental income” rather than the fair market value. “Net rental income” is defined as the gross income generated by the property less “reasonable operating expenses and property taxes.”
This amendment creates a potential opportunity for affordable housing developments to reduce their property taxes in this current revaluation period depending upon the profile of their actual rental income. A successful appeal of the property owner’s tax assessment would take effect beginning with the October 1, 2024, grand list, which determines the real property taxes due on July 1, 2025. Depending upon the revaluation cycle of the town in which the property is located, a change in assessment may apply to future grand lists.
Of note, the following Connecticut municipalities conducted real property tax revaluations in 2024, meaning that any changes to the October 1, 2024, assessment may apply for the next five years in these towns:
|
Bloomfield |
Derby |
North Branford |
Prospect |
Torrington |
|
Branford |
Hamden |
North Haven |
Putnam |
Voluntown |
|
Brooklyn |
Mansfield |
Old Lyme |
Seymour |
Wallingford |
|
Canterbury |
Monroe |
Oxford |
Thompson |
West Haven |
|
Coventry |
New Fairfield |
Pomfret |
Tolland |
Woodbridge |
If an affordable housing development owner or property owner believes they are the subject of an unfair and excessive property tax assessment, they must file an appeal with the local Board of Assessment Appeals no later than Thursday, February 20, 2025.
The lawyers in Carmody’s Tax Assessment and Valuation Appeals group are available to discuss your concerns and assist with any real property tax revaluation informal meetings or appeals.
For more information, please contact:
David S. Hardy
Partner
dhardy@carmodylaw.com
203.784.3110
Meghan F. Buckley
Associate
mbuckley@carmodylaw.com
203.784.3158