This bill amends the Metropolitan Redevelopment Code to address housing shortages by expanding the definition of areas eligible for redevelopment projects to include "housing shortage areas." It introduces new definitions for "housing shortage area," "qualifying multifamily property," and "qualifying multifamily unit," aimed at facilitating the development of affordable housing for households earning at or below the area median income. Local governments are empowered to exempt qualifying multifamily properties in these areas from property taxation for up to twenty years, incentivizing their development. The bill also requires local governments to designate housing shortage areas and prepare metropolitan redevelopment plans that include provisions for constructing qualifying multifamily units, thereby enhancing local governments' ability to tackle housing shortages while prioritizing public health and welfare.

Additionally, the bill clarifies the tax status of properties acquired by local governments under the Metropolitan Redevelopment Code, specifying that property taxes will be calculated based on the valuation prior to acquisition. It establishes tax exemptions for lessees and owners of substantial beneficial interests in project properties, with varying exemption timelines based on the acquisition date. Properties acquired under leases prior to January 1, 1986, are exempt for up to ten years, while those acquired after that date can be exempt for up to seven years. The bill aims to promote effective redevelopment strategies that address housing shortages and slum conditions, ultimately enhancing community development and welfare.

Statutes affected:
CT substitute: 3-60A-2, 3-60A-4, 3-60A-7, 3-60A-8, 3-60A-9, 3-60A-10, 3-60A-13.1, 3-60A-15, 7-36-3.1