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Connecticut has long grappled with the proper manner in which to value property devoted exclusively to house low- and moderate-income individuals, with court decisions coming down on different sides of the issue, in spite of a statute limiting the value of real property used for this purpose to the capitalized value of its “net rental income.”
In a recent case decided by the Tax Court in New Britain, a Hartford housing complex occupied by individuals who are chronically homeless and who also suffer from disabling conditions was found to operate at a loss, a fact the City of Hartford did not dispute. As a result, the capitalized value determined by the Court was zero, thus freeing it completely from paying any real estate taxes.
In addition to ordering a refund of all taxes paid by the property owner in past years, the Court also awarded attorney fees and costs to the plaintiff, apparently on its own motion.
While it can be anticipated that the City of Hartford will appeal this surprising decision, for now the Tax Court’s ruling offers new clarity to the vexing issue of how to value low- and moderate-income housing properties - perhaps to the amazement of all. Should this ruling be sustained on appeal, efforts to amend the statute in the next succeeding General Assembly session should be anticipated.
Soromundi Common, Limited Partnership v. City of Hartford – Docket No. CV 23-6079717 (May 19,2026).
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About Our Property Tax and Valuation Law Blog
Alerts, commentary, and insights from the attorneys of Pullman & Comley’s Property Tax and Valuation practice with timely information for businesses, nonprofits and individuals in commercial property tax appeals and eminent domain matters.