The Connecticut General Assembly recently passed a bill requiring municipalities to assess properties used solely for low and moderate-income housing based on the capitalized value of their net rental income.

            Public Act No. 24-143, Sec. 9 — which was signed into law by Governor Lamont on June 6, 2024 — amends Connecticut General Statutes (C.G.S.) § 8-216a and instructs towns and cities on how to value affordable housing properties for property tax assessment purposes.

            The amended statute now applies to “any real property used for housing solely for low or moderate-income persons or families” and mandates that the true and actual value “shall be based upon and shall not exceed the capitalized value of the net rental income of such real property.” “Net rental income” as defined in the statute means the actual income generated by the property less “reasonable operating expenses and property taxes.”

            The aim of the amendment is to clarify that the statute is intended to apply to any property used solely for affordable housing as defined in C.G.S. § 8-202. The amendment goes into effect on October 1, 2024 and should improve the consistency and transparency of the assessment of affordable housing properties throughout Connecticut for property tax purposes.

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