Sec. 12-20e. Grants in lieu of taxes for workforce housing development projects.

(b) Any grant payable to any municipality that applies for a grant under the provisions of this section shall be equal to seventy per cent of the property taxes that, except for any exemption applicable to any such housing authority property under the provisions of chapter 128, would have been paid with respect to such exempt real property on the assessment list in such municipality for the assessment date two years prior to the commencement of the state fiscal year in which such grant is payable, for a maximum of seven assessment years. The amount of the grant payable to each municipality in any year in accordance with this section shall be reduced proportionately in the event that the total of such grants in such year exceeds the amount appropriated for the purposes of this section with respect to such year.