Chapter 40T is simply an improved method of using betterments and assessments to build and fund public type improvements benefiting property owners in one section of a town or city and charging the cost of the improvements to the same property owners.
Key Elements:
- A special charge is assessed on property owners in a geographical area to finance needed infrastructure.
- A “Development Zone” is designated that includes the real estate benefiting from, and paying for, the proposed infrastructure improvements. Assessment payments are used to repay debt issued to fund infrastructure.
- First used to finance street and drain construction in New York in 1691. Now widely used to finance services, infrastructure and facilities within a defined geographical area, e.g. parks, roads, recreational facilities, utilities, and water and sanitary faculties