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Senator Moore's
proposed legislation would create a new
section of the General Laws, Chapter 40T
which would give municipalities the option
of acting on a petition of property owners to establish
a "Special Development District" -
a self-taxing mechanism to fund a wide array of public infrastructure such as roads, parks, water and sewer facilities. Last year some $15 billion in land-secured tax-exempt bonds financed infrastructure improvements in states other than Massachusetts.
The local city or town would have no financial liability for bonds issued pursuant to Chapter 40T. Under the current version of Chapter 40T, bonds would be issued either by the Massachusetts Development Finance Agency (“MDFA”) or a local improvement district governed by a prudential committee appointed by the local municipality. The bonds would be repaid from assessments on real estate located within a designated Development Zone established by petition of the property owners.
All matters relating to the financed improvements including the method of assessment of costs would be described in a detailed Improvement Plan subject to review and approval by the municipality after a noticed public hearing. Chapter 40T is not a redevelopment program but merely a voluntary method to fund infrastructure costs without using the local tax levy or State funds. No eminent domain powers are granted under Chapter 40T.
Senator
Moore's legislation provides a useful tool to property owners and municipalities to fund badly needed public improvements when local and State resources are unavailable.
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