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(a) The Executive must administer each district, prepare bond issues, collect taxes and revenues, and oversee construction of infrastructure improvements. Chapter 11B does not apply to:
(1) financing, acquiring, or building any infrastructure improvement under this Chapter; or
(2) retaining consultants or other professional services in connection with financing any infrastructure improvement or administering any development district.
(b) Construction of each infrastructure improvement listed in the resolution creating a district must begin promptly when bond proceeds or other funds are available unless:
(1) the approved Capital Improvements Program provides otherwise; or
(2) the improvement is being or has already been built.
(c) (1) The County may contract with the Revenue Authority or another public agency or a private party, including any owner of property in a development district, to construct or reimburse the cost of any infrastructure improvement when significant cost or time savings have resulted or are likely to result. In a contract under this subsection, the County may reimburse the cost of an infrastructure improvement as it is being built or after construction is complete.
(2) However, any reimbursement of construction costs under this subsection must not exceed the lowest of:
(A) the unencumbered appropriation available for that item;
(B) the actual construction cost of the item; or
(C) a fair and reasonable price developed under a cost/price analysis method used by the Office of Procurement.
(d) The Executive must designate an employee in the Office of the Executive or the Office of the Chief Administrative Officer as the Development District Coordinator for each development district for which the Council has adopted a resolution declaring its intent to create a development district under Section 14-6. Among other duties, the Coordinator must:
(1) coordinate the preparation of the Fiscal Report for the development district as required by Section 14-8;
(2) coordinate the financing and development of County infrastructure in that development district;
(3) advise the Executive, the Council, the Chief Administrative Officer, County Department heads, the Planning Board, and any other appropriate government agency, of any action needed to expedite the financing and development of County infrastructure in that development district;
(4) serve as primary point of contact regarding the financing and development of County infrastructure and associated State and private infrastructure for residents and businesses located or potentially located in or near that development district and the developer of any development located in that development district; and
(5) advise the Executive and Council about any other action needed to assure that all required infrastructure keeps pace with private development in that development district.
(e) The Executive must report to the Council not later than January 15 and July 15 of each year on the progress made during the preceding 6 months, and the significant steps to be taken during the following 6 months, regarding each development district for which the Council has adopted a resolution under Section 14-6.
(f) If the County has not issued any bonds for a district created under this Chapter, or if all bonds issued to finance a district have been repaid, the County has been reimbursed for the cost of any infrastructure improvement funded or reimbursed by the County, and the cost of any infrastructure improvement to be paid by the County directly from special assessments or special taxes has been paid, the Council may terminate the district by resolution approved by the Executive. If the Executive disapproves a resolution within 10 days after it is adopted and the Council readopts it by a vote of 7 Councilmembers, or if the Executive does not act within 10 days after the Council adopts it, the resolution takes effect. (1994 L.M.C., ch. 12, § 1; 2008 L.M.C., ch. 34, § 1; 2010 L.M.C., ch. 46, § 2; 2022 L.M.C., ch. 40, §1.)
Editor’s note—See County Attorney Opinion dated 9/7/07 discussing methods of acquiring the construction of infrastructure for development districts. See County Attorney Opinion dated 7/26/07 discussing multiple issues deriving from the Clarksburg Master Plan and related issues regarding development districts.
2008 L.M.C., ch. 34, took effect on January 26, 2009.
2008 L.M.C., ch. 34, § 3, states: Applicability; interpretation.
(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.
(a) A seller of real property located in a development district or proposed development district (as defined in subsection (f)) must disclose to any buyer during the life of any development district created under this Chapter:
(1) the amount of any special assessment, special tax, fee, or charge which the buyer must pay; or
(2) if that amount cannot readily be determined, a method of calculating the amount in sufficient detail to enable the buyer to estimate the maximum amount the buyer will pay currently and during the life of the district.
This disclosure must be made in any sale or lot reservation contract.
(b) The seller of any property located in a development district or proposed development district (as defined in subsection (f)) must specify in any advertisement, sales brochure, sign, or other sales material that the seller creates or authorizes, that:
(1) the property is or would be located in a development district; and
(2) any potential buyer should ask the seller about the additional taxes and other charges for which a property owner in the district may be liable.
Each sales office and model home in a new housing development located in a development district or proposed development district (as defined in subsection (f)) must prominently display at least one sign that contains the information required under this subsection. The information required under this subsection need not be included in a printed advertisement that is smaller than 16 square inches, or on the initial screen of an internet listing as long as the information appears elsewhere on that listing.
(c) A notice in a contract of sale or similar document which prominently contains the heading “Notice of Special Tax or Assessment” and substantially conforms to the following text complies with subsection (a):
Each year the buyer of this property must pay a special assessment or special tax imposed under Chapter 14 of the Montgomery County Code, in addition to all other taxes and assessments that are due. As of (date of this contract), the special assessment or special tax on this property amounts to or will not exceed (dollar amount in arabic numbers) each year. As of (date of each scheduled or expected increase), the assessment or tax is scheduled to increase to (amount of each scheduled or expected increase). For further information on this assessment or tax, the buyer can contact the County Department of Finance at (current telephone number).
If an increase in any special assessment, special tax, fee, or charge is likely to occur in the forseeable future but the timing or amount of the increase is not certain when the contract is signed, the notice must also expressly disclose that fact.
(d) Promptly after the Council adopts a resolution under Section 14-9, the Director of Finance must record among the land records of the County at the cost of the development district a declaration encumbering all real property located in the district and designating that property as subject to a development district. The declaration must terminate when the Director records a release stating that all bonds are fully repaid, the County has been reimbursed for the cost of any infrastructure improvement funded or reimbursed by the County, the cost of any infrastructure improvement to be paid by the County directly from special assessments or special taxes has been paid, and all other obligations of the County relating to the district have been satisfied. While the declaration is in effect, each deed to any real property located in the district must contain a notice that:
(1) the property is located in a development district; and
(2) a declaration filed in the County land records encumbers the property.
(e) The Director of Finance must indicate on the real estate tax bill for each property in a development district the amount of any special assessment or special tax imposed on the property.
(f) Any notice or other information that this Section requires a seller to provide for a property located in a development district must also be provided if a development district has not been created but the property is located in an area proposed to be included in a development district by a petition filed under Section 14-6.
(g) Any contract which does not disclose all information required by this Section is voidable at the option of the buyer before the date of settlement.
(h) In addition to any other applicable remedy or penalty, any person who does not comply with this Section is liable for any damages sustained by a buyer or potential buyer because of that person’s failure to provide any required notice or information. However, a seller or the seller’s agent is not liable for an incorrect estimate of the amount of any tax, assessment, fee, or charge disclosed under this Section if the seller relied in good faith on a method approved or recommended by the County to estimate that amount.
(i) The Office of Consumer Protection must enforce this Section as if it were part of Chapter 11. (1994 L.M.C., ch. 12, § 1; 2008 L.M.C., ch. 34, § 1.)
Editor’s note—See County Attorney Opinion dated 7/26/07 discussing multiple issues deriving from the Clarksburg Master Plan and related issues regarding development districts.
2008 L.M.C., ch. 34, took effect on January 26, 2009.
2008 L.M.C., ch. 34, § 3, states: Applicability; interpretation.
(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.
(a) This Chapter is necessary for the welfare of the County and its residents and must be liberally construed to achieve the purposes stated in Section 14-2.
(b) The powers granted under this Chapter supplement any power conferred by any other law and do not restrict any other power of County government. (1994 L.M.C., ch. 12, § 1.)