Sec. 399.009. REPORT REGARDING ASSESSMENT. (a) The report for a proposed program required by Section 399.008 must include:
(1) a map showing the boundaries of the proposed region;
(2) a form contract between the local government and the property owner specifying the terms of:
(A) assessment under the program; and
(B) financing provided by a third party or the local government, as appropriate;
(3) if the proposed program provides for third-party financing, a form contract between the local government and the third party regarding the servicing of the debt through assessments;
(4) a description of types of qualified projects that may be subject to contractual assessments;
(5) a statement identifying a local government representative authorized to enter into written contracts on behalf of the local government;
(6) a plan for ensuring sufficient capital for third-party financing and, if appropriate, raising capital for local government financing for qualified projects;
(7) if bonds will be issued to provide capital to finance qualified projects as part of the program as provided by Section 399.016:
(A) a maximum aggregate annual dollar amount for financing through contractual assessments to be provided by the local government under the program;
(B) a method for ranking requests from property owners for financing through contractual assessments in priority order if requests appear likely to exceed the authorization amount; and
(C) a method for determining:
(i) the interest rate and period during which contracting owners would pay an assessment; and
(ii) the maximum amount of an assessment;
(8) a method for ensuring that the period of the contractual assessment does not exceed the useful life of the qualified project that is the basis for the assessment;
(9) a description of the application process and eligibility requirements for financing qualified projects to be repaid through contractual assessments under the program;
(10) a method as prescribed by Subsection (b) for ensuring that property owners requesting to participate in the program demonstrate the financial ability to fulfill financial obligations to be repaid through contractual assessments;
(11) a statement explaining the manner in which property will be assessed and assessments will be collected;
(12) a statement explaining the lender notice requirement provided by Section 399.010;
(13) a statement explaining the review requirement provided by Section 399.011;
(14) a description of marketing and participant education services to be provided for the program;
(15) a description of quality assurance and antifraud measures to be instituted for the program; and
(16) the procedures for collecting the proposed contractual assessments.
(b) The method for ensuring a demonstration of financial ability under Subsection (a)(10) must be based on appropriate underwriting factors, including:
(1) providing for verification that:
(A) the property owner requesting to participate under the program:
(i) is the legal owner of the benefited property;
(ii) is current on mortgage and property tax payments; and
(iii) is not insolvent or in bankruptcy proceedings; and
(B) the title of the benefited property is not in dispute; and
(2) requiring an appropriate ratio of the amount of the assessment to the assessed value of the property.
(c) The local government shall make the report available for public inspection:
(1) on the local government's Internet website; and
(2) at the office of the representative designated to enter into written contracts on behalf of the local government under the program.
Added by Acts 2013, 83rd Leg., R.S., Ch. 416 (S.B. 385), Sec. 1, eff. June 14, 2013.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 577 (H.B. 3187), Sec. 5, eff. June 16, 2015.
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