1. (a) The governing body of a local government may determine that it is convenient and advantageous to establish a program under this chapter.
2. (b) An authorized official of the local government that establishes a program may enter into a written contract with a record owner of real property in a region designated under this chapter to impose an assessment to repay the owner's financing of a qualified project on the owner's property. The financing to be repaid through assessments may be provided by a third party or, if authorized by the program, by the local government.
3. (c) If the program provides for third-party financing, the authorized official of the local government that enters into a written contract with a property owner under Subsection (b) must also enter into a written contract with the party that provides financing for a qualified project under the program to service the debt through assessments.
4. (d) If the program provides for local government financing, the written contract described by Subsection (b) must be a contract to finance the qualified project through assessments.

5. (e) The financing for which assessments are imposed may include:

   1. (1) the cost of materials and labor necessary for installation or modification of a qualified improvement;
   2. (2) permit fees;
   3. (3) inspection fees;
   4. (4) lender's fees;
   5. (5) program application and administrative fees;
   6. (6) project development and engineering fees;
   7. (7) third-party review fees, including verification review fees, under Section 399.011; and
   8. (8) any other fees or costs that may be incurred by the property owner incident to the installation, modification, or improvement on a specific or pro rata basis, as determined by the local government.

Added by Acts 2013, 83rd Leg., R.S., Ch. 416 (S.B. 385), Sec. 1, eff. June 14, 2013.