SB 50 — AN ACT relating to special districts.

5.

A site development plan for the district showing the area in the district that is anticipated to be used for residential housing;

6.

A description of the infrastructure that the developer anticipates will be necessary to complete the development and an estimated cost of that infrastructure;

7.

The cost that the developer anticipates is necessary to complete the development;

8.

The proposed rate of the special assessment to be imposed;

and 9.

A formal request that the local government establish the district;

(b) Upon receipt of the initiating petition a local government shall, within ninety (90) days, approve or deny the petition.

The decision to approve or deny a petition is solely at the discretion of a local government.

To approve a petition a local government shall:

1.

Determine whether the petition contains the information required in paragraph (a) of this subsection;

2.

Conduct a public hearing concerning the proposed establishment of the district, notice of which shall be provided in the usual method of providing notice of a public meeting and shall include mailed, written notices to each property owner whose property is proposed to be Page 3 of 7 SB005010.100 - 1918 - XXXX 2/28/2025 9:52 AM GA UNOFFICIAL COPY 25 RS SB 50/GA included within the district;

and 3.

Adopt an establishing ordinance that contains:

a.

The name and address of the developer;

b.

The local government responsible for overseeing the district;

c.

A map and description of the area to be included within the district;

d.

A list of each parcel to be included within the district that contains the parcels' mailing addresses;

e.

A statement that the properties within the district may be subject to a special assessment;

f.

A description of the infrastructure that the local government has authorized to be financed via a special assessment;

g.

A description of the method of assessing special assessments as set out in subsection (2) of Section 4 of this Act;

h.

The time and manner in which the special assessment shall be paid;

and i.

The portion of the special assessment to be retained by the local government for the payment of administrative expenses as set out in subsection (4) of Section 4 of this Act;

and (c) The establishing ordinance may differ from the initiating petition, but the local government shall endeavor to negotiate with the developer and the owners of any property to be included within the district regarding differences between the initiating petition and the establishing ordinance prior to its passage.

(2) A property owner that signs a petition pursuant to subsection (1)(a) of this section shall not be permitted to remove the property owner's name from the petition.

(3) Each district established pursuant to Sections 1 to 6 of this Act shall be dissolved Page 4 of 7 SB005010.100 - 1918 - XXXX 2/28/2025 9:52 AM GA UNOFFICIAL COPY 25 RS SB 50/GA by the local government immediately upon the payment and discharge of all outstanding debt obligations incurred as a result of infrastructure costs for the district.

SECTION 3.

A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO READ AS FOLLOWS:

(1) A local government shall have the power to issue bonds, notes, or other obligations for the purpose of:

(a) Paying infrastructure costs identified in the establishing ordinance;

(b) Reimbursing the developer for the payment of prior infrastructure costs identified in the establishing ordinance;

or (c) Refinancing those bonds, notes, or obligations consistent with applicable law.

(2) A local government shall use revenue collected from special assessments it is authorized to levy pursuant to Section 4 of this Act for the payment of any bond, note, or other obligation issued pursuant to subsection (1) of this section.

(3) The maximum term of any bonds, notes, or other debt obligations issued pursuant to this section shall not exceed thirty (30) years from the date of first issuance.

SECTION 4.

A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO READ AS FOLLOWS:

(1) Upon the adoption of an establishing ordinance, a local government is authorized to levy special assessments against all properties located within a district.

The revenue collected from special assessments shall be applied to infrastructure costs identified in the establishing ordinance and may be applied to administrative costs as set out in subsection (4) of this section.

(2) The local government shall determine the total costs and expenses to be paid from special assessments, and apportion those costs and expenses upon the various Page 5 of 7 SB005010.100 - 1918 - XXXX 2/28/2025 9:52 AM GA UNOFFICIAL COPY 25 RS SB 50/GA properties located within the district in accordance with the benefits conferred upon the properties within the district.

In determining the benefits to each property, the governing body may consider factors regarding the property, including:

(a) Frontage to infrastructure;

(b) Total area;

and (c) Proportion that the assessed value of each property has to the total property within the district.

(3) A local government shall impose and collect special assessments annually.

(4) A local government may provide that a total of up to five percent (5%) of the revenue collected from a special assessment may be used for administrative expenses, including overhead costs associated with the collection of the special assessment.

(5) A local government shall prepare an assessment roll that lists the address and owner of each property within the district and the assessed value of the property.

A local government shall update the roll whenever property listed on the assessment roll is subdivided or its value is reassessed.

(6) If a property owner fails to pay an assessment on or before the date determined by the local government, interest of one percent (1%) per month and a penalty of one percent (1%) per month shall be added to the assessment.

SECTION 5.

A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO READ AS FOLLOWS:

(1) An assessment, any interest accruing on the assessment, and the costs of collection of the assessment as set out in Section 4 of this Act constitute a lien on and against the property upon which the assessment is levied.

The lien shall be superior to a lien of any trust deed, mortgage, mechanic's lien, or other encumbrance, but shall not be superior to any lien for the payment of taxes or a Page 6 of 7 SB005010.100 - 1918 - XXXX 2/28/2025 9:52 AM GA UNOFFICIAL COPY 25 RS SB 50/GA lien established pursuant to KRS 65.8835.

(2) Amounts collected by a local government shall not be allocated to the payment of a special assessment as set out in Section 4 of this Act until all taxes, penalties, and interest relating to ad valorem taxes imposed by any governmental entity have been paid in full.

(3) If any assessment is or becomes delinquent and the property subject to the assessment has been sold to the local government as a result of the delinquency, redemption of that property is permitted upon payment, not later than one (1) year after the date of sale, of the full amount of assessments due, plus interest and penalties.

SECTION 6.

A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO READ AS FOLLOWS:

(1) A residential infrastructure development district may be formed by two (2) or more local governments acting jointly.

(2) Each local government acting jointly to establish a district shall enter into an interlocal agreement concerning the district.

(3) Each local government acting jointly to establish a district shall follow the procedures set out in Section 2 of this Act, but may satisfy the public hearing requirement set out in subsection (1)(b)2.

of Section 2 of this Act by conducting a single joint public hearing.

(4) Prior to the completion of establishing ordinances, local governments acting jointly shall determine which local government will be responsible for the specified infrastructure costs and the collection of special assessments authorized under Section 4 of this Act.

This information shall be provided in the establishing ordinance and the interlocal agreement.

Page 7 of 7 SB005010.100 - 1918 - XXXX 2/28/2025 9:52 AM GA