The Arizona Revised Statutes have been updated to include the revised sections from the 57th Legislature, 2nd Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 58th Legislature, 1st Regular Session, which convenes in January 2027.
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48-7002. Petition to form district; contents of petition; filings; limitation of liability
A. A state affordability infrastructure district may be formed pursuant to this chapter by petition of all individuals and entities having fee title ownership of all real property in the proposed district. The petition shall be submitted to the authority. The district may include contiguous or noncontiguous property, provided that all noncontiguous property shall be located in the same county and shall lie within five miles of the boundary of other property within the district, measured in a straight line between such parcel boundaries. If any portion of a district is located within the corporate limits of a municipality, the entire district shall at all times be located within the corporate limits or within the adopted planning area of that municipality, as such limits or planning area may be amended from time to time.
B. The petition shall contain all of the following:
1. A metes and bounds description and a map of the district boundaries.
2. The proposed name of the district.
3. A general plan setting out a general description of the public infrastructure for which the district is proposed to be formed and for which bonds may be issued, the general areas to be improved and the estimated costs of constructing or acquiring the public infrastructure to be financed, constructed or acquired by the district.
4. A general description of the estimated cost of engineering services, legal services, administrative services and other major expenses that are related to organizing and initially operating the district.
5. An engineer's estimate of the costs of the public infrastructure for which the district is proposed to be formed and for which bonds may be issued.
6. The maximum authorized tax rate, the maximum aggregate principal amount of general obligation bonds and the maximum aggregate assessment amount, if any.
7. The maximum O/M tax rate, if any.
8. A preliminary financing plan that includes the anticipated sources and uses of monies for the public infrastructure.
9. If the district proposes to issue assessment bonds, an appraisal or an opinion of value prepared by a licensed real estate broker indicating the aggregate as-is value of real property in the district and the projected value of the real property and improvements in the district after completion of the public infrastructure proposed to be financed with such assessment bonds.
10. If the district proposes to issue general obligation bonds, a third-party market study that includes projections of the limited property value of real property in the district for each year in which general obligation bonds are proposed to be outstanding, together with information demonstrating that debt service on such bonds can be supported within the maximum authorized tax rate.
11. A statement of all holders of fee title to all real property in the district, the initial board members, the initial terms of office of the initial board members and the district clerk and the district treasurer.
12. A statement of bond counsel indicating that the petition complies with the procedural requirements of this section.
13. A copy of any existing and applicable development agreement or other agreement with the municipality or the county that relates to public infrastructure and that is recorded against the land included within the boundaries of the district, and a certification by the petitioner that the formation of the district will not violate any such agreement.
14. A written statement, signed by an engineer, certifying that the estimated cost of the public infrastructure to be constructed in the proposed district exceeds $5,000,000.
15. A summary of the anticipated community benefits of forming the district, including expected impacts on public infrastructure timing, housing attainability and economic development, together with a description of any material risks associated with district formation and implementation of the general plan, including potential tax, assessment and fiscal impacts on owners of real property in the district.
16. A formation order in substantially final and recordable form.
17. A description of the petitioner, including:
(a) The legal name of each entity or individual having fee title ownership of any real property in the proposed district.
(b) The name, address and telephone number of the primary contact for the petitioner.
(c) The names of any legal representatives, engineers, architects, financial consultants or other consultants that are significantly involved in the petition.
(d) A general description of the petitioner's experience with similar types of developments that the district will support.
C. Any financial burden of a district is borne solely by the district and is not borne by the authority, this state or any municipality, county or other political subdivision of this state. Any liability, judgment or claim against a district is the sole responsibility of the district and does not constitute a liability, judgment or claim against the authority, this state or any municipality, county or other political subdivision of this state.
D. The petition shall be filed with the authority. The petitioner shall provide written notice of the filing of the petition to each affected municipality and, if the district is located in an unincorporated area, to the county. The notice shall state that the district will be formed not less than thirty days and not more than sixty days after submitting the petition, subject to approval by the authority, and that the municipality or the county, as applicable, may submit to the authority within thirty days after the filing of the petition a written notice that identifies a basis for denial of the petition pursuant to section 48-7003, subsection D, paragraph 4.
E. If the authority determines that the petition is incomplete or deficient, the petitioner shall have a period of sixty days after written notice of the deficiencies to submit corrections of the deficiencies. If the corrections of the deficiencies are not submitted to the authority within sixty days after notice or do not correct the deficiencies, the authority may reject the petition pursuant to section 48-7003, subsection D.
F. For the purposes of this chapter, all certifications, determinations, approvals, findings and actions required to be made by the authority shall be made by the executive director. No action, approval, resolution or vote of the board of directors of the authority is required for any certification, determination or action taken by the executive director pursuant to this chapter. Any action taken by the executive director pursuant to this chapter is deemed an action of the authority.