| district; and
(iv) developed land values will not be used in the
commission's analysis for lots that do not have completed water, wastewater,
and drainage facilities and roads constructed to county or city standards,
as applicable, at the time of development.
(6) At the time of commission approval, the following
shall apply:
(A) all underground water, wastewater, and drainage
facilities to be financed with proceeds from the proposed bond issue
or necessary to serve the projected build-out used to support the
feasibility of the subject bond issue, shall be at least 95% complete
as certified by the district's engineer;
(B) all groundwater, surface water, waste discharge
permits, or other permits needed to secure capacity to support the
projected build-out shall have been obtained;
(C) sufficient lift station, water plant, and sewage
treatment plant capacity, as applicable depending on the type of district,
to serve the connections projected for a period of not less than 18
months shall be either 95% complete as certified by the district's
engineer or available in existing plants in accordance with executed
contracts for capacity in plant(s) owned by other entities (but in
no event less than 50,000 gallons per day water plant and sewage treatment
plant capacity);
(D) water supply, lift station, and wastewater treatment
capacity needed to support the projected build-out used to support
the feasibility of the subject bond application must be existing or
funds for that capacity must be included in the bond issue or secured
by a letter of credit or other acceptable guarantees approved by the
executive director; and
(E) all street and road construction to provide access
to the areas provided with utilities to be financed with proceeds
from the proposed bond issue, or necessary to serve the projected
build-out used to support the feasibility of the subject bond issue,
must be 95% complete as certified by the district's engineer. All
streets and roads shall be constructed in accordance with city or
county standards, as appropriate.
(7) At least 25% of the projected value of houses,
buildings, and/or other improvements shown in the projected tax rate
calculations must be completed prior to advertising for the bond issue.
The projections used to satisfy this section shall also be used in
the calculations required by paragraphs (2) and (3) of this subsection.
(8) For bonds supported by taxes, a written agreement
must be executed between the district and the developer and any other
landowner and their respective lenders receiving proceeds of the bonds
that permanently waives the right to claim agricultural, open-space,
timberland, or inventory valuation for any land, homes, or buildings
that they own in the district with respect to taxation by the district.
The agreement shall be binding for 30 years on such developer, other
landowners, their respective lenders, any related or affiliated entities,
and their successors and assignees, unless such exemptions were in
effect at the time of the commission's approval of the bond issue
and such exemptions were shown in the projected tax rate calculations.
Such developer, landowners, and lenders shall record covenants running
with the land to such effect, which shall not be modified or released
without written authorization of the commission, and shall provide
recorded copies to the commission at the time of filing a bond application.
If written agreements by owners of developable property who are not
receiving bond proceeds are not voluntarily provided, and the ratio
of the assessed valuation of their property to the district's total
certified assessed valuation exceeds 10% for any individual or 20%
for all combined, the feasibility analysis of the bond issue will
be based on a reduced value for such property if not already on the
tax rolls at a minimal value.
(9) One or more of the requirements in paragraphs (1)
- (8) of this subsection may be waived for good cause by commission
order if all of the facilities proposed under a bond issue application
are essential because of valid orders, permits, or actions against
the district by a governmental agency or court. If only a portion
of the bond issue is for facilities essential because of valid orders,
permits, or actions against the district by a governmental agency
or court and if a waiver of any of the requirements is requested,
all nonessential projects may be deleted from the bond issue if not
feasible under the other provisions of these rules.
(10) A current market study is required for districts
using growth projections to support the feasibility of the bond issue.
The market study will meet the guidelines set out in the Bond Application
Report Format. The market study provided will specifically address
the projected building program for the three years subsequent to filing
of the bond application and the period of projected build-out shown
in the bond application and the competing projects in the surrounding
market area. The study must contain a detailed description of the
proposed development and the houses, buildings, and other improvements
that are proposed.
(11) Requirements of paragraph (6)(A), (C), and (E)
of this subsection, and the requirements of paragraph (7) of this
subsection shall not apply in the following cases where:
(A) the no-growth tax rate for a district containing
2,000 acres or more providing only drainage facilities does not exceed
$1.30; the no-growth tax rate of a district providing major water
and sewage facilities that it finances by the issuance of its bonds
to an area containing 2,000 acres or more does not exceed $1.30, and
the combined no-growth tax rate does not exceed $2.00; and, the developer
has completed a substantial amount of major thoroughfare or other
infrastructure to serve the district;
(B) the district has an acceptable credit rating as
defined in §293.47(b)(4) of this title or a credit enhanced rating
as defined in paragraph (5) of this subsection; or
(C) the district is providing water, wastewater, and
drainage facilities and the combined no-growth tax rate of all overlapping
entities specifically attributable to water, sewage, drainage, recreational
facilities, and roads if the entity is a special district encompassing
less than one county commissioner's precinct, if any, does not exceed
the following:
(i) $1.50 in Chambers, Harris, Galveston, Montgomery,
Fort Bend, Waller, and Brazoria Counties;
(ii) $1.20 in Dallas, Denton, Collin, Tarrant, Travis,
Hays, Williamson, Comal, and Guadalupe Counties; or
(iii) $1.00 in all other counties.
(D) for the exceptions in subparagraph (A) or (C) of
this paragraph, the developer shall provide a guarantee for its 30%
share of utilities, if required under §293.47 of this title,
in the form and manner required by §293.47(g) of this title;
(E) for utilities that are not funded and not complete
but necessary to support the feasibility of the bond issue, the developer
shall provide a guarantee for 100% of utilities for the exceptions
in subparagraphs (A), (B), or (C) of this paragraph in the form and
manner required by §293.47(g) of this title;
(F) for the exceptions in subparagraph (B) or (C) of
this paragraph, the developer shall provide a paving guarantee under §293.48
of this title (relating to Street and Utilities Construction by Developer);
or
(G) for the exceptions in subparagraph (A) of this
paragraph, financial guarantees for the internal subdivision utilities
and streets are not required.
(l) For a district's second and subsequent bond issues,
subsection (k) of this section shall apply, and the following shall
apply except that only paragraph (1) of this subsection applies to
districts that do not have a developer as defined by TWC, §49.052(d),
or to districts that meet the criteria set out in subsection (k)(11)
of this section.
(1) A 90% tax collection rate shall be used in the
projected tax rate calculations unless the district demonstrates that
its historical collection rate is higher, and a 100% tax collection
rate shall be used in the no-growth tax rate calculations.
(2) The water, wastewater, and drainage facilities
financed by the district under previous bond issues and all road and
street construction to serve such connections shall be at least 95%
complete as certified by the district's engineer.
(3) Sufficient lift station, water plant, and sewage
treatment plant capacity to serve the connections shown in the tax
rate calculations submitted in prior bond issues shall be at least
95% complete as certified by the district's engineer, unless the district
is a participant in a regional surface water or wastewater plant,
a permit sufficient for the expansion has been issued, and either:
(A) funds are available to finance such capacity and
any additional capacity necessary for a feasible expansion;
(B) sufficient capacity is contractually available
to serve all such prior connections; or
Cont'd... |
