AN ACT AUTHORIZING CITIES AND COUNTIES TO PROVIDE FOR THE PAYMENT OF ALL OR A PORTION OF THE COST OF CRITICAL INFRASTRUCTURE PROJECTS BY USING FUNDS FROM PRIVATE PARTIES AND REPAYING THE FUNDS BY MAKING SPECIAL ASSESSMENTS ON BENEFITED PROPERTY AND CLARIFYING THE RECIPIENT OF THE PROCEEDS FROM A PERFORMANCE GUARANTEE. Enacted June 21, 2017. Effective June 21, 2017.
Summary date: Jun 21 2017 - View summary
Summary date: Jun 6 2017 - View summary
Senate amendment #1 amends the 3rd edition by adding a new section amending GS 160A-372(g), concerning performance guarantees. Establishes that no person can claim any rights under or to any performance guarantee provided pursuant to subsection (g) or in the proceeds of any such performance guarantee other than the following three entities or persons: (1) the local government to whom the performance guarantee is provided, (2) the developer at whose request or for whose benefit the performance guarantee is given, and (3) the person or entity issuing or providing the performance guarantee at the request of or for the benefit of the developer. Clarifies that this new section of the act is intended to clarify existing law as it pertains to performance guarantees issued under GS 160A-372 and GS 153A-331 (sets out the content and requirements of subdivision control ordinances adopted by cities and counties). Makes conforming changes to the act's title.
Summary date: May 24 2017 - View summary
Senate committee substitute makes the following changes to the 2nd edition.
Amends proposed subsection (a1) of GS 153A-210.3, pertaining to counties, and GS 160A-239.3, pertaining to cities, regarding the required content of a preliminary assessment resolution. Adds that an estimate of the total cost of the project must be included in the preliminary assessment resolution adopted by the board of commissioners or city council. Makes conforming and organizational changes.
Amends the proposed changes to GS 153A-210.4(a) and GS 160A-239.4(a), which authorize a board of commissioners or city council to provide for payment of all or part of the cost of a project for which an assessment can be imposed under the Article from the specified funding sources, to provide that this funding is in addition to funding from sources otherwise authorized for use by a county or city (previously, by a board of commissioners or city council) in connection with a project. Amends proposed subsection (c) of each statute, providing that the board of commissioners or city council can agree to impose one or more assessments pursuant to the Article in order to reimburse a private party with whom the county or city contracted to construct a project on behalf of the county or city, so long as the reimbursement is for actual costs incurred by the private party related to the project and documented to the county or city (previously, did not limit reimbursement to actual costs incurred by the private party or require documentation). Further, modifies and expands the clause providing for the inclusion of an inflationary factor in the costs that may be reimbursed by adding new provisions to each subsection (c). Prohibits reimbursement to the private party for any interest costs of the funds invested by the party in the project except in the event that an abeyance in the collection of assessment is permitted pursuant to GS 153A-210.5, or GS 160A-239.5, whereby the amount to be reimbursed can include an inflationary factor applicable for the period of abeyance. Adds a new subsection (d) to each statute, providing that a subdivision control ordinance adopted by a county under GS 153A-331, or by a city under GS 160A-372, providing for a performance bond or guarantee to assure successful completion of required improvements will apply to a project funded in whole or in part by an assessment under each respective Article.
Summary date: Feb 27 2017 - View summary
House committee substitute makes the following changes to the 1st edition. Changes the effective date of the act from June 30, 2017, to when the act becomes law.
Summary date: Feb 21 2017 - View summary
Amends Article 9A of GS Chapter 153A, concerning special assessments for critical infrastructure needs of counties. Authorizes counties to impose special assessments (was, issue revenue bonds payable from special assessments) as provided in the Article on benefited property and to use the resulting revenues as provided in the Article. Provides that the Article expires July 1, 2020, for projects that have not been approved under a final assessment resolution, but this expiration does not effect the validity of assessments imposed or to be imposed or bonds issued or authorized under the provisions of this Article if a final assessment resolution has been adopted prior to the effective date of the expiration.
Amends GS 153A-210.2 to allow the board of county commissioners of a county to make special assessments against benefited property within a county for the purpose of assisting in arranging for payment of (was, purpose of financing) capital costs of specified projects. Requires the board of commissioners to determine a project's estimated cost and the amount of costs to be paid from assessments (was, only estimated cost). Adds that costs can include expenses for the administration of assessments. Clarifies that the board is to establish an assessment method that will, in the board's judgement, accurately assess (was, method that will most accurately assess) each lot or parcel of land subject to the assessments according to the conferred benefit from the project for which the assessment is made. Makes conforming changes.
Amends GS 153A-210.3 by adding a new subsection (a1) to require the board of commissioners to adopt a preliminary assessment resolution upon the receipt of a petition for a special assessment as provided for under existing subsection (a). Sets out the required contents of a preliminary assessment resolution to be: a statement of intent, a general description of the project, a statement of the proposed terms of payment of the assessment, and an order setting a time and place for a public hearing on all matters covered by the preliminary assessment resolution. Requires the public hearing to be no earlier than three weeks and no later than 10 weeks from the day on which the preliminary resolution was adopted. Adds new subsection (a2) to require that the board of commissioners hear all interested persons who appear with respect to any matter covered by the preliminary assessment resolution at the public hearing. Authorizes the board to adopt a final assessment resolution no earlier than 10 days after the public hearing that directs the project or portions of the project to be undertaken. Requires the final assessment resolution to include the same parameters required in the preliminary assessment resolution in subsection (a1), except for the public hearing information.
Amends GS 153A-210.4 to authorize a board of commissioners to provide for the payment of all or a portion of the cost of a project for which an assessment has been imposed from funding from private parties in addition to funding from other specified sources. Clarifies that the assessment resolution must include the estimated cost of the project to be funded from assessments and the amount of the cost estimated to be derived from each respective funding source. Adds new subsection (c) to allow the board to agree to impose one or more assessments in order to reimburse a private party for costs incurred by the private party if a board contracts with the private party to construct a project on behalf of the county as provided in GS 153A-210.7. Allows for an inflationary factor applicable during any period of abeyance provided under GS 153A-210.5. Clarifies that a board of commissioners cannot be obligated to reimburse a private party any amount in excess of assessment revenues actually collected less the county's related administrative costs.
Amends GS 153A-210.5 to clarify that the annual installments of an assessment are due on the date that real property taxes are due. Further allows the board of commissioners to provide for the abeyance of assessments as authorized in Article 9 of GS Chapter 153A. Sets forth that the abeyance can apply to any assessed property. Requires annual installments to be deferred until the period of abeyance ends. Provides that the assessment is to be payable on the first annual installment payment date after the period of abeyance ends.
Amends GS 153A-210.7 to provide that initial funding for the project may be provided by the public or private agencies. Provides that if no more than 25% of the estimated cost of a project is to be funded from the proceeds of general obligation bonds or general revenue bonds, excluding assessments imposed under Article 9A of GS Chapter 153A (previously, did not exclude special assessments), a private agency entering into a contract for the implementation of all or part of the county project is subject to Article 8 of GS Chapter 143 to the extent specified in that contract.
Makes conforming and technical changes throughout Article 9A of GS Chapter 153A.
Amends Article 10A of GS Chapter 160A, concerning special assessments for critical infrastructure needs of cities and towns. Makes changes to GS 160A-239.1, GS 160A-239.2, GS 160A-239.3, GS 160A-239.4, GS 160A-239.5, and GS 160A-239.7 relating to special assessments by a city council that are identical to those changes made to Article 9A of GS Chapter 153A by this act.
Effective June 30, 2017, and applies to assessments made on or after that date.