Connecticut Superior Court Rules Zero Assessed Value for Loss-Making Low-Income Housing

The Connecticut Superior Court ruled in favor of the taxpayer, determining that the assessed value of the property is zero for municipal tax purposes. The case involved low-income housing units operating at a financial loss under regulatory oversight and rent restrictions. The court applied Connecticut statutes requiring valuation based on capitalized net rental income, finding that since the property operates at a loss, the negative income results in zero assessed value. [Soromundi Commons Ltd. P’ship v. City of Hartford, Conn. Super. Ct., No. HHB-CV-23-6079717-S, 05/19/26]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.