HB 1321 (Truly Agreed) Establishes additional regulations on neighborhood improvement districts
Current Bill Summary
- Prepared by Senate Research -

SCS/HCS/HB 1321 - This act establishes that the average maturity of bonds or notes issued under the Neighborhood Improvement Act after the effective date cannot exceed 120% of the average economic life of the improvements.

Any improvement for which a petition is filed or an election is held must include provisions for maintenance of the project during the term of the bond or note.

In the event that any parcel of property within the district is divided into more than one parcel after the final costs of the improvement are apportioned, all unpaid final costs assessed to the original parcel will be recalculated and divided proportionally to each of the parcels that result from the division. No parcel of property which has had its assessment paid in full can be reassessed or have its initial assessment changed.

The governing body, when creating a resolution to submit the question of creating a district to the voters or a petition to be signed by property owners, must provide notice that the annual assessment for maintenance costs of the improvements must not exceed the estimated annual maintenance costs by more than 25%.

The resolution or petition must provide the proposed method of assessment of property, which includes an annual assessment of maintenance costs in each year during the term of the bonds issued and after the bonds are paid in full. Current law refers only to an assessment in each year after the bonds are paid in full.

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