Section 293.60 - Conditional Approval Based on Performance of a Developer in Other District Projects(a) The commission, in evaluating an application by a district for approval to reimburse construction funds to a developer, may consider the performance of the developer or related or affiliated entities in other district projects and may condition reimbursement on certain actions of the developer or related or affiliated entities.(1) Issues which may be considered in evaluating the performance of a developer may include the past history of the developer and related or affiliated entities with respect to: (A) payment of financial obligations including taxes, standby fees and other user fees to any district;(B) devaluation of property values by claiming special exemptions within any district after the commission's approval of bonds in said district without compensating agreements with the district;(C) compliance with commission rules and orders; and(D) performance under agreements with any district including, but not limited to, cost sharing and maintenance agreements, street and road construction agreements, 30% cost participation agreements, and financial guarantees.(2) Actions of a developer or related or affiliated entity on which reimbursement of construction funds to a developer may be conditioned include:(A) payment of financial obligations including taxes, standby fees and other user fees to any district to which they are owed;(B) withdrawal of a claim of special exemption which resulted in the devaluation of property in any district after the commission's approval of bonds for said district or the execution of compensating agreements for the district;(C) compliance with commission rules and orders; and(D) performance under existing agreements with any district including, but not limited to, cost sharing and maintenance agreements, street and road construction agreements, 30% cost participation agreements, and financial guarantees.(b) For the purposes of this section "developer" means "developer of property in the district" as defined by Water Code, § 49.052(d) and its lienholder if it is in default.(c) For the purposes of this section "related or affiliated entities" means any entity owned in whole or majority part by the developer but does not include development lenders unless they are joint venture partners with the developer in such districts.(d) In response to a written request, the district shall submit to the executive director information regarding the developer or related or affiliated entities, including, but not limited to, the names of principals, individuals, affiliated entities and lienholders to aid the commission's evaluation of the past history of the developer.30 Tex. Admin. Code § 293.60
The provisions of this §293.60 adopted to be effective October 22, 1996, 21 TexReg 9905.