§ 44-64. Deferral of assessment increases attributable to rehabilitation of real property under the Connecticut Urban Rehabilitation Homeownership Program.

(a)

Preamble, general findings and authority. Whereas, the State of Connecticut and the City of Danbury seek to promote neighborhood stabilization through the rehabilitation of residential properties and wish to encourage employees to live where they work; and whereas, the State of Connecticut has established the Urban Rehabilitation Homeownership Program in order to serve said goals; and whereas, pursuant to the provisions of C.G.S. § 8-265qq, the Connecticut General Assembly has authorized targeted municipalities, including the City of Danbury, to fix assessments attributable to rehabilitation of real property within designated areas of the City in accordance with the Urban Rehabilitation Homeownership Program; and whereas the deferral of assessment increases attributable to said rehabilitation will further these goals and encourage the continued economic vitality of the City; now, therefore, the City of Danbury does hereby provide for the deferral of assessment increases attributable to the rehabilitation of residential real property within designated areas of the City as specified herein.

(b)

Application and eligibility. An application to the City for a deferral of assessment increases attributable to the rehabilitation of residential real property may be made by any party who intends to acquire or has acquired residential real property pursuant to the provisions of C.G.S. § 8-265qq and the Urban Rehabilitation Homeownership Program. In order to be eligible for the benefits provided by this section, upon receipt of a report from the Planning Department, the City Council must find that:

(1)

The applicant is an approved participant in the Connecticut Housing Finance Authority Urban Rehabilitation Homeownership Program who intends to acquire or has acquired residential real property within certain areas of the City of Danbury designated by said authority;

(2)

The applicant is willing to enter into a written agreement with the City of Danbury requiring the applicant to rehabilitate such real property with assistance provided by the Connecticut Housing Finance Authority under said program; and,

(3)

The applicant is not delinquent in the payment of taxes owed to the City of Danbury or taxes owed to the Danbury Downtown Special Services District at the time of application.

(c)

Application procedure.

(1)

All applications shall be submitted to the Danbury Planning Department on forms supplied by said department. Each such application shall include the applicant's estimate of the cost of the rehabilitation subject to deferred assessment hereunder.

(2)

The Planning Department shall review each application submitted to it and shall forward each such application to the City Council within thirty (30) days of receipt together with the department's report concerning whether or not the application meets the eligibility criteria contained in this section. Such report shall include specific reasons in support of the findings expressed therein.

(3)

Upon receipt of an application and report from the Planning Department, the City Council shall approve the application, reject the application, or return the application to the department for further information. If an application is rejected, the City Council shall state its reasons for rejection upon the record. The applicant may file a revised application with the Planning Department, which addresses the reasons for rejection by the City Council.

(4)

In the event of approval, the City Council shall adopt a resolution authorizing the Mayor to enter into an agreement with the applicant, as specified herein.

(d)

Assessment deferral agreement.

(1)

The assessment deferral agreement to be signed by the applicant and the Mayor on behalf of the City shall refer to and incorporate the application as approved by the City Council, shall reflect the assessment on the property immediately prior to the commencement of rehabilitation.

(2)

The assessment deferral agreement shall provide that upon completion of the rehabilitation work and issuance of the certificate of occupancy the increase in the assessment on the property due to such rehabilitation shall be deferred for a period of five (5) years from the date such rehabilitation is completed.

(3)

Deferred assessments shall not apply to taxes levied under section 40-48 applicable to downtown special services district taxes.

(4)

The assessment deferral agreement shall provide that such rehabilitation shall be completed by a date fixed in such assessment deferral agreement. In the event that on the date so fixed for completion, the Planning Department has denied certification that the rehabilitation has been performed in accordance with the terms of the assessment deferral agreement, or at any time if the Planning Department determines that the owner of the property is in default under the terms of said agreement, and has failed to cure said default after notice and an opportunity to do so, the agreement shall terminate. In the event of such termination, the owner of the property, as herein provided, shall be liable for any increase in taxes for which he would have been liable in the absence of such agreement. The agreement shall further provide that a property owner may apply to the Planning Department for an extension of time in which to complete the rehabilitation, which, for good cause shown, the Planning Department may approve, but in no event shall such extension of time exceed a period of one (1) year.

(5)

The assessment deferral agreement shall further provide that the agreement is contingent upon the following conditions:

a.

That, in addition to the certification requirement of subsection (e)(3) of this section, the property shall be subject to inspection and certification by the Building Inspector and Health Director, as being in conformance with such provisions of the state building and health codes and local housing codes as may apply, and by the Zoning Enforcement Officer to ensure conformance with the zoning regulations, as required;

b.

That the assessment deferral shall cease if there is any delinquency in the payment of taxes on the property; and

c.

That the assessment deferral shall be conditioned upon the continued residence of the applicant in such property during the period of said deferral.

(e)

Miscellaneous provisions.

(1)

The applicant must have acquired the property to be rehabilitated prior to execution of the tax assessment deferral agreement.

(2)

The Assessor shall have the sole responsibility for determining the cost and value of the rehabilitated real property subject to a deferral of assessment increases hereunder.

(3)

A copy of any assessment deferral agreement entered into pursuant to the provisions of this section shall be forwarded to the Assessor, who shall adjust his records accordingly.

(4)

The Planning Department shall forward a copy of its certification that the construction or improvements has been completed in accordance with the assessment deferral agreement to the Assessor. In the event that the Planning Department denies such certification, it shall send a copy of its denial to the Assessor, who shall readjust his tax records in accordance with the provisions of this section.

(5)

Any agreement entered into under the provisions of this section shall be recorded on the land records of the City.

(6)

The Planning Department is authorized to establish written procedures and technical specifications for the administration of this section.

(7)

Properties undergoing rehabilitation that commenced prior to the adoption of this section, but which have not yet received a certificate of occupancy, may be eligible for the benefits set forth in this section, provided that they meet the requirements of and apply in accordance with the provisions of this section.

(8)

In the event of a general revaluation by the City in the year in which such rehabilitation is completed resulting in any increase in the assessment of such property, only that portion of the increase resulting from such rehabilitation shall be deferred; and in the event of a general revaluation in any year after the year in which such rehabilitation is completed, such deferred assessment shall be increased or decreased in proportion to the increase or decrease in the total assessment on such property as a result of such general revaluation.

(Code 1961, § 18-25.1; Ord. No. 558, 9-5-2001)