You asked if the law allows municipalities to provide financial assistance to businesses and other private organizations, such as little leagues and farmers' markets.

The law allows municipalities to fund businesses and other private organizations only if the funding addresses specific public needs or concerns. For example, several statutes allow them to lend money to businesses as part of a broad effort to strengthen the tax base or eliminate slum and blight.

● The Connecticut City and Town Development Act allows municipalities to acquire, improve, and convey tracts of land to private developers. It also allows them to lend money to these developers if they cannot obtain financing from banks or other traditional lenders (CGS §§ 7-480—7-503).

● The Municipal Development Projects statutes allow municipalities to do similar things, but limits the authorization to lend money to approximately 25 state-designated distressed municipalities (CGS § 8-193).

● The Urban Homesteading and the Rehabilitation of Abandoned Industrial and Commercial Buildings statutes allow municipalities to acquire and convey separate parcels to private developers, including individuals and businesses (CGS §§ 8-169o—8-169w and CGS §§ 8-290—8-296, respectively). They also allow municipalities to lend money for developing this property if their legislative bodies approve.

These statutes allow municipalities to lend their funds to private developers. Statutes governing other activities may allow them to use municipal funds only in conjunction with state dollars. For example, it appears that a municipality can use its funds to assist a farmers' market only under the auspices of Department of Agriculture's (DOA) Farmland Viability Matching Grant Program (CGS § 22-26j). The program also allows the municipality to use the municipal and state dollars to develop food processing facilities or make other agricultural related capital improvements.

Lastly, the statutes explicitly allow municipalities to appropriate money to a wide range of civic organizations performing a public function. The organizations include hospitals, health care facilities, nonprofit museums, libraries, and drug abuse and dependency programs (CGS § 7-148 (c) (2) (D)).

JR: ts