New Haven City-wide Assessment Deferral Program

When a property is rehabilitated or improved by new construction, the assessed value may increase because of the investments made in the property. In some cases this may deter investment. In order to encourage the fullest development of property and to encourage investment in New Haven’s existing commercial and residential building stock, the City Wide Assessment Deferral Program freezes the property tax assessments on certain eligible properties at pre-construction or pre-rehabilitation values and then phases in the taxes assessed on the improvements over a period of five years.

Contact

For 1-4 Unit Residential Structures:

Evan Trachten
203-946-8373
Email

Mixed Use/Commercial/Large Residential:

Clay Williams
203-946-7093
Email

How it Works

• Prior to the start of construction or rehabilitation, the owner of the property files an application for a determination of eligibility.
• During construction, the assessment of the property is frozen at the pre-rehabilitation assessed value. Upon completion of rehabilitation or construction, but not more than two years from the effective date of the agreement, a five-year phase-in period begins.
• In the first year, the taxable assessment of the property remains at the pre-rehabilitation level. On the third anniversary of the effective date of the agreement, twenty percent (20%) of the assessed value of the improvements to the property is assessed against the property and an additional twenty percent (20%) of the increased value is assessed against the property for each of the next four years, until one hundred percent (100%) of the increase is assessed.

Download the Deferral Program Information and Application Packet or contact the program coordinator for information. Please note that there is a separate Enterprise Zone Tax Assessment Deferral Program, which offers incremental benefits to projects within an Enterprise Zone.

Enterprise Zone Tax Assessment Deferral Program

When a property is rehabilitated or improved by new construction, the assessed value may increase because of the investments made in the property. In some cases this may deter investment. In order to encourage the fullest development of property and to encourage investment in New Haven’s existing commercial and residential building stock in the City’s designated “Enterprise Zone”, the Enterprise Zone Assessment Deferral Program freezes the property tax assessments on certain eligible properties at pre-construction or pre-rehabilitation values and then phases in the taxes assessed on the improvements over a period of seven years.

Contact

For 1-4 Unit Residential Structures:

Evan Trachten
203-946-8373
Email

Mixed Use/Commercial/Large Residential:

Clay Williams
203-946-7093
Email

How it Works

• First, the owner of the property completes an application for a determination of eligibility.
• During construction, the assessment of the property is frozen at the pre-rehabilitation assessed value. Upon completion of rehabilitation or construction, but not more than two years from the effective date of the agreement, a seven-year phase-in period begins.
• For the first two years following completion of the project, the taxable assessment of the property remains at the pre-rehabilitation level. On the fourth anniversary of the effective date of the agreement, fifty percent (50%) of the assessed value of the improvements to the property is assessed against the property. Thereafter an additional ten percent (10%) of the increased value is assessed against the property for each of the next four years, until one hundred percent (100%) of the increase is assessed.

Contact the program coordinator for more information or download the Deferral Program Information and Application Packet. Please note that there is a separate similar City Tax Assessment Deferral Program,.

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