FINAL BILL REPORT

HB 86

                                  C 315 L 87

BYRepresentatives Brough, Haugen, May, Bristow and Bumgarner

Requiring notice about local improvement district's financing of sewer or water improvements to be sent to certain additional property owners.

House Committe on Local Government

Senate Committee on Governmental Operations

SYNOPSIS AS ENACTED

BACKGROUND:

Local improvement districts (LID's) are mechanisms used by local governments to finance all or part of the costs of public improvements such as roads, streets, sewer lines and water lines.  Special assessments are imposed upon property within a LID in relation to its benefit from being located near the improvement.  Generally a public hearing is required to be held on a proposed LID.  However, cities and towns are not required to hold a public hearing on a proposed LID that is initiated by petition of property owners.

A condition of purchasing a house using a Federal Housing Administration (FHA) loan is that the house be connected to a sewer system or potable water system if the sewer system or potable water system is available to the house.

SUMMARY:

Whenever it is proposed that a city, town, county, public utility district, sewer district, water district, or irrigation district create a local improvement district (LID) to finance sanitary sewers or potable water facilities, additional notice of the public hearing on the proposed LID must be mailed to the owners of property located outside of the LID that would be required to be connected to the facilities as a condition of qualifying for a Federal Housing Administration (FHA) loan.

Cities and towns would be required to hold a public hearing on a proposed LID if the LID were initiated by petition of property owners.

VOTES ON FINAL PASSAGE:

      House 97   0

      Senate    46     3(Senate amended)

      House 98   0(House concurred)

EFFECTIVE:July 26, 1987