Bill > HB0636

This bill establishes a comprehensive legal framework for creating and managing Infrastructure Development Districts (IDDs) in Tennessee, providing municipalities with a new tool for infrastructure financing and development. The legislation allows host municipalities to create special districts where developers can levy special assessments on property owners to fund infrastructure improvements, with key provisions including reducing the contemplated capital cost requirement from $5 million to $1 million. The bill defines infrastructure broadly to include streets, utilities, land donations, and related facilities, and establishes detailed procedures for district creation, including requirements for petitions, public hearings, and establishment resolutions. Municipalities can issue bonds backed by these special assessments, with a maximum 30-year term, and have flexibility in determining how to apportion assessment costs based on factors like property frontage, area, and assessed value. The bill includes important protections such as requiring that assessments fairly reflect benefits received, limiting administrative expenses to 5%, and mandating annual audits by the state comptroller. Districts must be dissolved within 30 years or upon meeting certain conditions, such as paying off all outstanding obligations, and the law provides mechanisms for prepayment of assessments and handling delinquent payments. Importantly, the legislation does not authorize developers to operate infrastructure but requires compliance with existing laws and potential infrastructure transfer to appropriate governmental or private entities.

Budget and Finance, Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0636&ga=114