Administrative Rules of Montana › Department 36 - NATURAL RESOURCES AND CONSERVATION › Chapter 36.23 - DRINKING WATER STATE REVOLVING FUND ACT › Subchapter 36.23.1 - Financial Assistance › Rule 36.23.112 - SPECIAL IMPROVEMENT DISTRICTS

Current through Register Vol. 13, July 5, 2024
(1) The
				department may accept as evidence of the loan, bonds issued by a municipality
				payable from assessments levied upon real property included within a special
				improvement district and specially benefited by the project being financed from
				the proceeds of the loan, upon the following terms and conditions:
(a) the district be created in accordance
				with the provisions of Title 7, chapter 12, part 21 and/or Title 7, chapter 12,
				parts 41 and 42, MCA;
(b) the city
				or county agrees to maintain a state revolving fund as authorized by
				7-12-2181 through
				7-12-2186 and
				7-12-4221 through
				7-12-4225, MCA (respectively, the
				state revolving fund statutes), and covenants to secure the bonds by such state
				revolving fund and agrees to provide funds for the state revolving fund by
				levying such tax or making such loan from the general fund as authorized by the
				state revolving fund statutes;
(c)
				five percent of the principal amount of the loan be deposited into the state
				revolving fund and the city or county shall agree to maintain in the state
				revolving fund to the extent allowed by law an amount not less than 5% of the
				principal of the bonds secured by the state revolving fund. The department may,
				if the financial risks associated with a proposed district warrant it, as a
				condition to the purchase of such bond, require the city or county to establish
				a district reserve fund and fund it from the proceeds of the loan, as permitted
				by law;
(d) the special improvement
				district be at least 75% developed, except if the loan is for the purpose of
				acquiring an existing system.For purposes of this rule, a district will be
				deemed to be 75% developed if 75% of the lots or assessable area in the
				district has a habitable residential dwelling thereon that is currently
				occupied or there is a commercial, professional, manufacturing, industrial, or
				other nonresidential facility thereon;
(e) the total amount of special assessment
				debt including the amounts to be assessed for repayment of the loan against the
				lots or parcels of land in the district does not exceed 50% of the fair market
				value of such lots or parcels within the district; and
(f) if the project to be financed from the
				loan secured by a special assessment bond is not part of a system currently
				existing and operated by the municipality receiving the loan and for the normal
				maintenance and operation of which the municipality is responsible and provides
				for such through rates and charges, a special maintenance district must be
				created at the time the improvement district is created pursuant to the
				applicable statutes in order to provide for the operation and maintenance of
				the project or an agreement must have been entered into at the time the loan is
				made between the municipality and another governmental entity, pursuant to
				which the governmental entity agrees to operate and maintain the
				project.