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New Haven Could Shrink Development Tax Benefit

September 6, 2019 | Reprints | Unlock Link | Print

The New Haven skyline. (Courtesy Photo / Public Domain / Charles Barneby)

New Haven officials are weighing whether to modify a tax benefit for developments that significantly improve a parcel’s property tax assessment.

The program, which has existed since the mid-1970s, allows a developer to defer the increase in property taxes for two years, and then phase in the increase over the following five.

According to the New Haven Independent, the city could speed up the phase-in process and set aside the resulting gains for affordable housing production.

Despite a challenging state economy, New Haven has experienced a significant boom in multifamily construction, driven by demand created by Yale University and companies that have spun off from it.