Texas Local Government Code 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.
Terms Used In Texas Local Government Code 399.009
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Contract: A legal written agreement that becomes binding when signed.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Property: means real and personal property. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(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.