CHAPTER 376. CONTRACTUAL ASSESSMENTS FOR ENERGY EFFICIENCY IMPROVEMENTS

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Statutes > Texas > Local-government-code > Title-12-planning-and-development > 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.

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.

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;

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

(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.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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