Sec. 47-301. Community land trust. Purposes. Powers.
Sec. 47-302. Ground lease interest constitutes an interest in real property.
Sec. 47-303. Required ground lease provisions.
Sec. 47-304. Lease restrictions.
Sec. 47-300. Definitions. As used in sections 47-300 to 47-304, inclusive:
(1) “Eligible housing” means any building, structure or portion thereof which is used or occupied, or intended, arranged or designed to be used or occupied, as the home, residence or sleeping place of one or more persons or families of very low income, low income or moderate income.
(2) “Very low income” means persons and families having an aggregate family income at or below twenty-five per cent of the area median income, as determined by the United States Department of Housing and Urban Development.
(3) “Low income” means persons and families having an aggregate family income between twenty-six and fifty per cent of the area median income, as determined by the United States Department of Housing and Urban Development.
(4) “Moderate income” means persons and families having an aggregate family income between fifty-one and eighty per cent of the area median income, as determined by the United States Department of Housing and Urban Development.
(5) “Lessee” means a person, association or organization with whom a community land trust enters into a ground lease for the purpose of providing eligible housing.
(6) “Community land trust” means a nonprofit organization incorporated pursuant to chapter 602 or any predecessor statutes thereto that meets the requirements of section 47-301.
(7) “Leasehold interest” means the real property interest of a lessee in a ground lease with a community land trust.
(8) “First option to purchase” means a right in favor of a community land trust to purchase the improvements and leasehold interest of a lessee, or any portion or portions thereof owned by or subleased to any resident of eligible housing therein, prior to the rights of any other party, at a limited equity price.
(9) “Limited equity price” means a price for the sale of any building or improvement located on land owned by a community land trust that is determined by means of a formula or similar calculation designed to maintain such building or improvement as eligible housing for the longest term possible, but not less than the term of the applicable ground lease.
(10) “Predominantly” means at least fifty per cent.
(P.A. 90-203, S. 1; P.A. 91-358, S. 1; P.A. 96-256, S. 205, 209.)
History: P.A. 91-358 amended Subdiv. (3) to redefine “predominantly” as 50% rather than 70%; P.A. 96-256 amended definition of “community land trust” to replace reference to “chapter 600” with “chapter 602 or any predecessor statutes thereto”, effective January 1, 1997.
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Sec. 47-301. Community land trust. Purposes. Powers. (a) A community land trust shall have as one of its purposes the holding of land and the leasing of such land for the purpose of preserving the long-term eligibility and accessibility of housing predominantly for very low income, low income and moderate income persons and families. Aggregate family income shall be determined at the time the lessee enters into a ground lease with the lessor. A community land trust shall have, in addition to all powers granted to it under chapter 602, the power to buy and sell land, to mortgage and otherwise encumber land and to enter into renewable or self-extending ground leases with an initial term of up to ninety-nine years.
(b) The bylaws of a community land trust shall provide that: (1) The trust is an organization open to members of the general public who support the organization's goals and purposes; (2) no more than thirty per cent of the members of the organization may be persons who reside outside of the municipality or municipalities in which the community land trust operates; (3) the membership shall elect at least fifty-one per cent of the governing board of the community land trust; (4) at least twenty-five per cent but no more than forty per cent of the governing board shall be lessees, representatives elected by lessees or residents of eligible housing located on land owned by the community land trust, provided prior to the organization having at least five units of housing, the governing board shall appoint persons to represent the lessees; and (5) the remaining members of the governing board, if any, may be appointed by elected public officials to the extent set forth in the bylaws.
(c) A community land trust shall hold title to land and lease such land to very low income, low income and moderate income persons and families, limited equity cooperatives or other corporations, provided the terms of any such ground lease shall give the community land trust the first option to purchase any building or improvement on such land, or any condominium or cooperative unit therein, at a limited equity price set forth in the ground lease.
(d) A community land trust may charge a lease fee to the lessee. Such fee shall be determined by the community land trust and may include property taxes and any other assessments made on the land, an administrative fee and a land use fee. The method of determining the lease fee shall be set forth in the ground lease. Nothing in this section shall prohibit a state, local or other funding agency or a lender from placing in escrow all or part of the lease fee.
(P.A. 90-203, S. 2; P.A. 96-256, S. 206, 209.)
History: P.A. 96-256 amended Subsec. (a) to replace reference to Ch. 600 with Ch. 602, effective January 1, 1997.
See Sec. 8-214d re state financial assistance for establishing a community land trust.
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Sec. 47-302. Ground lease interest constitutes an interest in real property. A lessee's interest in a ground lease with a community land trust shall constitute an interest in real property. Any loan made to the lessee may be secured by the lessee's leasehold interest in the same manner as any other loan secured by real property.
(P.A. 90-203, S. 3.)
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Sec. 47-303. Required ground lease provisions. A ground lease between a community land trust and a lessee shall include provisions designed to preserve long-term eligible housing on the land. Such provisions may include, but shall not be limited to, a first option to purchase and restrictions on the resale, subletting or assignment of improvements or portions thereof. Such provisions shall not be subject to any general statute or rule of law limiting the duration, degree or nature of restraints on real property, including, but not limited to, the common law rule against perpetuities, the uniform statutory rule against perpetuities and the rule against unreasonable restraints on alienation.
(P.A. 90-203, S. 4.)
See chapter 802c, part II, Secs. 45a-490 to 45a-496, inclusive, re uniform statutory rule against perpetuities.
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Sec. 47-304. Lease restrictions. If any notice of lease states that the lease includes restrictions pursuant to sections 47-300 to 47-304, inclusive, the lease will be deemed to include, at a minimum, all of the restrictions contained in section 47-303.
(P.A. 90-203, S. 5.)
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