|(a) A developer may be reimbursed by a district for interest accrued for a period of up to two years after the final payment by the developer on approved construction pay estimates, professional fees, and attendant nonconstruction costs paid by a developer for providing facilities in anticipation of sale to such district. If final payment on a construction contract is 95% complete, the initiation of the two year interest accrual period will be six months from the date the contract is 95% complete, unless the developer can demonstrate a genuine contractual dispute with the contractor, or other extenuating reasons, as determined by the commission. The interest rate shall not exceed the net effective interest rate on the bonds sold, or the interest rate actually paid by the developer for loans obtained for this purpose, whichever is less. If a developer uses its own funds rather than borrowed funds, the net effective interest rate on the bonds sold shall be applied.
(b) If reimbursement for accrued interest for a period of more than two years after the completion date allowed in subsection (a) of this section is requested by a district, and if no interest reimbursement has occurred, additional accrued interest up to five years from the completion date of the construction contracts including related professional fees and nonconstruction costs may be allowed if deemed feasible by the commission, and if: (1) the actual costs incurred by the developer plus the total allowed interest does not exceed present day costs for the facilities at the time of purchase; or (2) the aggregate of the amounts included in such district's bond issue for accrued developer interest for such two-year period, any proposed additional accrued developer interest, any accrued interest on outstanding bond anticipation note(s) of such district, and any capitalized interest on such bond issue does not exceed an amount
equal to four years' interest on the total bond issue, said interest rate to be calculated on the basis of the net effective interest rate at which the bonds are actually sold; provided, however, that unless specifically requested by the district, recommended in writing by the district's financial advisor, and approved by the commission, a district bond issue including additional accrued developer interest pursuant to this subsection shall not provide for capitalized interest on such issue for a period of less than one year. (c) The developer shall not be reimbursed for interest accrued on his share of construction costs as required by §293.47 of this title (relating to Thirty Percent of District Construction Costs To Be Paid by Developer). (d) If otherwise determined to be feasible by the commission, time limitations on accrued developer interest shall not apply to: (1) wastewater treatment facilities serving or
programmed to serve 2,000 acres or more; (2) water supply and treatment facilities serving or programmed to serve 2,000 acres or more; (3) that portion of water and sanitary sewer lines from the district's boundary to the interconnect, the source of water supply or wastewater treatment facility, when such source of water supply or wastewater treatment facility serves 2,000 acres or more; (4) that portion of water and sanitary sewer lines serving or programmed to serve 1,000 acres or more; or (5) drainage channels, levees and other flood control facilities and stormwater detention facilities meeting the requirements of §293.52 of this title (relating to Storm Water Detention Facilities) and §293.53 of this title (relating to District Participation in Regional Drainage Systems) which are serving or are programmed to serve 2,000 acres or more or at the discretion of the commission, areas less
than 2,000 acres, as the commission may deem appropriate to encourage regional drainage projects. (e) These time limitations on accrued developer interest also apply to advances made for necessary organization and operation costs as allowed under §293.44(a)(16) of this title (relating to Special Considerations).
|Source Note: The provisions of this §293.50 adopted to be effective September 5, 1986, 11 TexReg 3736; amended to be effective June 30, 1993, 18 TexReg 3758; amended to be effective April 15, 1994, 19 TexReg 2301; amended to be effective October 22, 1996, 21 TexReg 9905.