• A special development district is a political subdivision, created with LOCAL approval, that would allow land owners to issue bonds for public infrastructure improvements. $15 billion in such bonds are issued throughout the United States. However, without S. 146, Massachusetts has not had access to this funding.

• The local city or town would have no financial liability for bonds and the bonds would NOT impact a city or town's tax levy limit under proposition 2 1/2. 

• The bonds would be repaid from assessments on real estate located within a designated Development Zone established by petition of the property owners. The property owners could pay the bonds back over 35 years rather than the 20 presently allowed under general laws. 

• The district would be managed by a 5 member committee. The membership would be established in the district application to the municipality. Members would serve for 5 years after which the municipality would appoint or re-appoint members.

• The district would be subject to all municipal and state taxes. While the city or town would bear no responsibility for the bonds issued under Chapter 40T, it would reap the increased property tax revenue from the property improvements and related economic development.

1) Land Owners submit an “Improvement Plan”. Owners of at least 80% of the acreage in the subdivision would submit an "Improvement Plan" to a city or town. The Improvement Plan would:

• Establish the types of improvements to be undertaken
• Establish the boundaries of the district
• The Method of assessing the financing.

2) Public Hearing. The city or town would schedule a public hearing, adhering to strict publicity guidelines. 

3) Municipal Approval. If 100% of the property owners submit the plan, then the city council or board of selectmen would approve the creation of the district. If less than between 99% and 80% of the property owners submit the plan, either the city council or town meeting would need to approve the plan. No plan can move forward without at least 80% of the owners in support. 

• The legislation will fund "gated communities". 
  
  Such bonds are forbidden from funding projects not open to the general public:
  
  “...provided that improvements shall not include any improvements located in so-called ‘gated communities’ that restrict access to the general public."

• The legislation will exempt political subdivisions from the Uniform Procurement act, fair wage and competitive biding laws. 
  
  It will not. Section 3, Subsection B, Number 6 specifies that the districts are subject to these laws. 

• The powers of the district will include eminent domain. 
  
  They do not. They allow the district to purchase property and receive it by gift so long as it fits with the established purpose of the district.

• These districts will become independent governments. 
  
  They will not. Their powers are explicitly spelled out in the law. They include:

1. Assess and collect infrastructure Assessments
2. Collect debt
3. Create by-laws to enforce the collection of funds relating to improvements
4. Adopt an official seal and maintain an office 
5. Enter into contracts with municipalities and other organizations to carry out improvement plan
6. Purchase, lease or acquire land by gift that is related to the stated purpose of the improvement plan
7. Power to carry out construction relative to the improvements of the districts. It would be subject to the Uniform Procurement act, fair wage and competitive biding laws
8. Disperse money made by the district
9. To sue and be sued in own name
10. Invest funds of the local development district
11. Employ Staff to Manage the District
12. Procure Insurance against loss or liability
13. Apply for loans and grants from governmental agency

The Prudential Committee responsible for the administration of the district must meet every 6 months and is subject to all municipal open meeting laws. 

The Municipality also has the authority to remove a member of the committee for just cause.

• Neighborhoods that actively want to hook up to a town sewer or want new roads.
  
  Under Ch 40T, they could organize and petition the municipality to establish a Development Zone to fund the improvements paid by assessments on the property within the Zone. This means that only those benefiting directly from the improvement would pay the cost.

• A downtown area with a parking problem that is choking business
  
  The business owners could get together and petition the municipality to approve a Development Zone that would self-fund a new garage and /or other needed improvements. The garage could be owned by the city or town or a Local Improvement District.

• A community that wants to encourage new quality development but wants to make sure that additional services or facilities are paid for by the developer or new residents
  
  The formation of a 40T Development Zone could fund such improvements.