State Senator David J. Cappiello, R-Danbury, today voted in favor of a measure that will provide approximately $4 million funding to the state’s Moderate Rental Housing PILOT and tax abatement program. According to Sen. Cappiello, the city of Danbury will receive a combined $180,000 in PILOT funding and tax abatement, while the town of Bethel will get $34,000 in tax abatement. The legislation passed both the House and Senate unanimously today and now goes to Gov. M. Jodi Rell for final approval.

“This is very good news for these two communities.” said Sen. Cappiello who is co-sponsoring the legislation. “When this bill came before the Appropriations Committee there was a very strong consensus that state funding to assist with affordable housing was desperately needed. This is a shot in the arm for our local housing authorities and advocacy groups who are doing everything possible to make sure affordable housing is available.”

Last month, Sen. Cappiello met with officials from the Danbury City-wide Housing Council to discuss housing issues. He said one of their concerns was to restore PILOT funding. He said while this is a one-time expenditure, he is very hopeful that additional funding will be included in the adjusted state budget.

House Bill 5031, AN ACT CONCERNING PAYMENT IN LIEU OF TAXES FOR PUBLIC HOUSING AND THE LOW AND MODERATE INCOME TAX ABATEMENT PROGRAMS, transfers a total of $3,908,890 from the Department of Social Services (DSS) Housing/Homeless Services account to Department of Economic and Community Development (DECD) to fund the Moderate Rental Housing PILOT program and the Housing Tax Abatement program in FY 08. The funds being transferred were designated in the adopted budget to fund Rental Assistance Program (RAP) certificates; however, these funds would not be spent this fiscal year and would otherwise lapse.

“The whole point of PILOT and abatement programs is to keep rents low,” said Sen. Cappiello. “Without this funding, rents very likely would have been raised on the people who can’t afford it. I am very pleased that we were able to avoid that by passing this bill today.”