This Chapter may be referred to as the Montgomery County Development District Act.

(a) The purposes of this Chapter are to: (1) authorize the County to provide financing, refinancing or reimbursement for the cost of infrastructure improvements necessary for the development of land in areas of the County of high priority for new development or redevelopment by creating development districts in which special assessments, special taxes, or both, may be levied; (2) authorize the issuance of bonds or other obligations of the County that are payable from special assessments or special taxes collected, in a development district; (3) specify the procedures to be followed in creating a development district, issuing bonds, and assessing and enforcing the collection of special assessments or special taxes in such a district; and (4) provide for the tax-exempt nature and form of the bonds. (b) Development districts would be especially useful in achieving these purposes where: (1) an approved master plan recommends significant development in a specific area of the County; (2) the infrastructure needs necessary to serve that development include extensive and long-term facilities; and (3) the real estate market and the availability of land will permit significant development within the life of a development district. (a) Any amendment to County Code Chapter 14 made in Section 1 of this Act applies to any action taken after this Act take effect. (b) Any amendment to County Code Chapter 14 made in Section 1 of this Act does not alter or affect any Council resolution adopted, or other action taken with respect to a development district, before this Act takes effect. (c) Any amendment to County Code Chapter 14 made in Section 1 of this Act does not indicate that the previous version of a provision amended by Section 1 of this Act should be interpreted differently from the same provision as amended by Section 1 of this Act. (d) Any notice or disclosure requirement in Section 14-17, as amended by Section 1 of this Act, applies to any sale contract signed, and any sales material or advertisement for sale disseminated, after this Act takes effect in any development district created, and in any proposed development district for which the Council adopted a resolution under Section 14-6, after January 1, 2001.

In this Chapter the following words have the following meanings: Adequate Public Facility means any infrastructure improvement required by the Planning Board as a condition of approving a preliminary plan of subdivision under Section 50-35(k) or identified in the County Growth Policy as necessary for adequate public facilities approval in a development district. Additional Public Facility Capacity means the provision of an infrastructure improvement not fully funded in the first 4 years of the County's then-applicable Capital Improvement Program. Administrative Expense means any expense incurred by any County department or office in connection with the administration or funding of a development district, including: (1) any expense directly related to levying and collecting any special tax, special assessment, fee, or charge under this Chapter; (2) any expense of complying with any arbitrage rebate requirement or disclosure requirement under federal or state law; (3) an allocable share of the salary of any County employee who is primarily responsible for the administration or funding of a development district; (4) an allocable share of County administrative overhead related to the administration and funding of a development district; and (5) the fees and expenses of any fiscal agent employed by the County in connection with development district bonds. Bond means a special obligation or revenue bond, note, or similar instrument issued under this Chapter or any other law if the indebtedness evidenced thereby will be repaid from revenue generated by special assessments, special taxes, fees, or charges levied under this Chapter in a development district. Cost means the aggregate dollar cost of: (1) building, rebuilding, or renovating any infrastructure improvement, and acquiring any land, structure, real or personal property, right, right-of-way, franchise, easement, or interest; (2) machinery and equipment, including machinery and equipment needed to expand or enhance services in a development district; (3) financing charges and interest before and during construction and, if the Executive finds it advisable, for a limited period after completing construction; interest and reserves for principal and interest, including costs of municipal bond insurance and any other financial guaranty, costs of issuance, and administrative expenses; (4) extensions, enlargements, additions, or improvements; (5) architectural, engineering, financial, and legal services; (6) plans, specifications, studies, surveys, and estimates of costs or revenues; (7) expenses necessary or incident to deciding whether to proceed with a district or any infrastructure improvement; and (8) any other expense necessary or incident to building, acquiring, or financing any infrastructure improvement. Development includes redevelopment of underdeveloped land. Development District means a special taxing district created for the purposes listed in Section 14-2 and, if a resolution adopted under Section 14-9 creates one or more subdistricts in a development district, each subdistrict. Infrastructure Improvement means a school, police station, fire station, library, civic or government center, storm drainage system, sewer, water system, road, bridge, culvert, tunnel, street, transit facility or system, parking lot or facility, sidewalk, lighting, park, recreational facility, or any similar public facility, and the land where it is or will be located. Owner means a person or entity with legal title to property, or a contract purchaser of a property. Special Assessment means a levy on property which is assessed in relation to any special benefit received from the construction of one or more infrastructure improvements to support development in a development district. Special Benefit means any advantage or betterment accruing to real property as the direct result of any infrastructure improvement. The allocation of any additional public facility capacity to a development project is a special benefit. Special Fund means an independent account in which special assessment, special tax, fee, or charge payments received for a development district are deposited and, if a resolution adopted under Section 14-9 creates one or more subaccounts in a special fund, each subaccount. Special Tax means a property or excise tax levied in a development district, not based on any special benefit received, to pay for one or more infrastructure improvements to support development in that district. (a) Any amendment to County Code Chapter 14 made in Section 1 of this Act applies to any action taken after this Act take effect. (b) Any amendment to County Code Chapter 14 made in Section 1 of this Act does not alter or affect any Council resolution adopted, or other action taken with respect to a development district, before this Act takes effect. (c) Any amendment to County Code Chapter 14 made in Section 1 of this Act does not indicate that the previous version of a provision amended by Section 1 of this Act should be interpreted differently from the same provision as amended by Section 1 of this Act. (d) Any notice or disclosure requirement in Section 14-17, as amended by Section 1 of this Act, applies to any sale contract signed, and any sales material or advertisement for sale disseminated, after this Act takes effect in any development district created, and in any proposed development district for which the Council adopted a resolution under Section 14-6, after January 1, 2001.

In addition to any power granted under any other law, the County may, subject to applicable state law and this Chapter: (a) create one or more development districts; (b) levy special assessments, special taxes, fees, or charges, in any development district; and (c) issue bonds and other obligations payable from special assessments, special taxes, fees, or charges, levied in any development district. (a) Any amendment to County Code Chapter 14 made in Section 1 of this Act applies to any action taken after this Act take effect. (b) Any amendment to County Code Chapter 14 made in Section 1 of this Act does not alter or affect any Council resolution adopted, or other action taken with respect to a development district, before this Act takes effect. (c) Any amendment to County Code Chapter 14 made in Section 1 of this Act does not indicate that the previous version of a provision amended by Section 1 of this Act should be interpreted differently from the same provision as amended by Section 1 of this Act. (d) Any notice or disclosure requirement in Section 14-17, as amended by Section 1 of this Act, applies to any sale contract signed, and any sales material or advertisement for sale disseminated, after this Act takes effect in any development district created, and in any proposed development district for which the Council adopted a resolution under Section 14-6, after January 1, 2001.