CHAPTER 376. CONTRACTUAL ASSESSMENTS FOR ENERGY EFFICIENCY IMPROVEMENTS
LOCAL GOVERNMENT CODE
TITLE 12. PLANNING AND DEVELOPMENT
SUBTITLE A. MUNICIPAL PLANNING AND DEVELOPMENT
CHAPTER 376. CONTRACTUAL ASSESSMENTS FOR ENERGY EFFICIENCY
IMPROVEMENTS
Sec. 376.001. AUTHORIZED FINANCING. An assessment under this
chapter may finance:
(1) energy efficiency public improvements to developed lots for
which the costs and time delays of creating an entity under law
to assess the lot would be prohibitively large relative to the
cost of the energy efficiency public improvement to be financed;
and
(2) the installation of distributed generation renewable energy
sources or energy efficiency improvements that are permanently
fixed to residential, commercial, industrial, or other real
property.
Added by Acts 2009, 81st Leg., R.S., Ch.
655, Sec. 1, eff. September 1, 2009.
Sec. 376.002. CERTAIN FINANCING PROHIBITED. An assessment under
this chapter may not be used to finance:
(1) facilities for undeveloped lots or lots undergoing
development at the time of the assessment; or
(2) the purchase or installation of appliances not permanently
fixed to real property.
Added by Acts 2009, 81st Leg., R.S., Ch.
655, Sec. 1, eff. September 1, 2009.
Sec. 376.003. CONSENT FOR ASSESSMENT REQUIRED. A municipality
may impose an assessment under this chapter only with the consent
of the owner of the assessed property at the time of the
assessment.
Added by Acts 2009, 81st Leg., R.S., Ch.
655, Sec. 1, eff. September 1, 2009.
Sec. 376.004. DESIGNATION OF AREA FOR ASSESSMENT. (a) The
governing body of a municipality may determine that it is
convenient and advantageous to designate an area of the
municipality within which authorized municipal officials and
property owners may enter into contracts to assess properties for
energy efficiency public improvements described by Section
376.001(1) and make financing arrangements under this chapter.
(b) The governing body of a municipality may determine that it
is convenient, advantageous, and in the public interest to
designate an area of the municipality within which authorized
municipal officials and property owners may enter into contracts
to assess properties to finance the installation of distributed
generation renewable energy sources or energy efficiency
improvements that are permanently fixed to real property.
(c) An area designated by the governing body of a municipality
under this section may include the entire municipality.
Added by Acts 2009, 81st Leg., R.S., Ch.
655, Sec. 1, eff. September 1, 2009.
Sec. 376.005. RESOLUTION OF INTENTION TO CONTRACT FOR
ASSESSMENT. (a) To make a determination under Section 376.004,
the governing body of a municipality must adopt a resolution
indicating the governing body's intention to designate an area
for assessment.
(b) The resolution of intention must:
(1) include a statement that the municipality proposes to make
contractual assessment financing available to property owners;
(2) identify the types of energy efficiency public improvements,
distributed generation renewable energy resources, or energy
efficiency improvements that may be financed;
(3) describe the boundaries of the area in which contracts for
assessments may be entered into;
(4) thoroughly describe the proposed arrangements for financing
the program; and
(5) state the time and place for a public hearing and that
interested persons may object to or inquire about the proposed
program at the hearing.
(c) If contractual assessments are to be used to finance the
installation of distributed generation renewable energy sources
or energy efficiency improvements that are permanently fixed to
real property, the resolution of intention must state that it is
in the public interest to do so.
(d) The resolution shall direct an appropriate municipal
official to:
(1) prepare a report under Section 376.006; and
(2) consult with the appropriate appraisal district or districts
regarding collecting the proposed contractual assessments with
property taxes imposed on the assessed property.
Added by Acts 2009, 81st Leg., R.S., Ch.
655, Sec. 1, eff. September 1, 2009.
Sec. 376.006. REPORT REGARDING ASSESSMENT. An appropriate
municipal official designated in the resolution shall prepare a
report containing:
(1) a map showing the boundaries of the area within which
contractual assessments are proposed to be offered;
(2) a draft contract specifying the terms that would be agreed
to by the municipality and a property owner within the
contractual assessment area;
(3) a statement of municipal policies concerning contractual
assessments including:
(A) identification of types of energy efficiency public
improvements, distributed generation renewable energy sources, or
energy efficiency improvements that may be financed through the
use of contractual assessments;
(B) identification of a municipal official authorized to enter
into contractual assessments on behalf of the municipality;
(C) a maximum aggregate dollar amount of contractual
assessments;
(D) 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
(E) a method for ensuring that property owners requesting
financing demonstrate the financial ability to fulfill financial
obligations under the contractual assessments;
(4) a plan for raising a capital amount required to pay for work
performed in accordance with contractual assessments that:
(A) may include:
(i) amounts to be advanced by the municipality through funds
available to it from any source; and
(ii) the sale of bonds or other financing;
(B) shall include a statement of or method for determining the
interest rate and period during which contracting property owners
would pay any assessment; and
(C) shall provide for:
(i) any reserve fund or funds; and
(ii) the apportionment of all or any portion of the costs
incidental to financing, administration, and collection of the
contractual assessment program among the consenting property
owners and the municipality; and
(5) the results of the consultations with the appropriate
appraisal districts concerning incorporating the proposed
contractual assessments into the assessments of property taxes.
Added by Acts 2009, 81st Leg., R.S., Ch.
655, Sec. 1, eff. September 1, 2009.
Sec. 376.007. DIRECT PURCHASE BY OWNER. On the written consent
of an authorized municipal official, the proposed arrangements
for financing the program pertaining to the installation of
distributed generation renewable energy sources or energy
efficiency improvements that are permanently fixed to real
property may authorize the property owner to:
(1) purchase directly the related equipment and materials for
the installation of the distributed generation renewable energy
sources or energy efficiency improvements; and
(2) contract directly for the installation of the distributed
generation renewable energy sources or energy efficiency
improvements.
Added by Acts 2009, 81st Leg., R.S., Ch.
655, Sec. 1, eff. September 1, 2009.
Sec. 376.008. LIEN. An assessment imposed under this chapter
and any interest or penalties on the assessment constitutes a
lien against the lot on which the assessment is imposed until the
assessment, interest, or penalty is paid.
Added by Acts 2009, 81st Leg., R.S., Ch.
655, Sec. 1, eff. September 1, 2009.