Developer Participation Contracts

A Developer Participation Contract is a cost-sharing agreement between the City and developers to construct water, wastewater, and storm sewer mains in underserved areas. The City may share in the expense of construction of the main and other eligible costs by any of the following methods:

• 30 percent reimbursement: Reimbursement to the developer for 30 percent of the construction cost for water and wastewater main plus the balance of oversizing costs. The cap on reimbursement is limited to $1,000,000.00 per contract.
• 50 percent reimbursement: Reimbursement to the developer is the sum of 50 percent of the construction cost for water and wastewater main, the balance of oversizing costs, plus design costs for a total reimbursement that does not exceed the maximum contract amount not requiring council approval. The cap on reimbursement is limited to $50,000.00 per contract.
• 70 percent reimbursement:
  • For new low or moderate cost single-family homes sold to homeowners by fee simple deed (single-family residences located within the city limits having initial purchase prices as certified by the developer that does not exceed the latest available 12-month listing for median price single-family housing in the city as published by the Real Estate Center at Texas A&M University), reimbursement to the developer for the following eligible costs:
    • 70 percent of water and wastewater main construction costs plus the costs of inspection and construction management,
    • 100 percent of related design cost,
    • All oversizing costs not reimbursed under provision above,
    • Up to a $3,000.00 per lot reimbursement of storm sewer drainage cost, and
    • The developer's interest cost up to the market interest rate the city's financial advisor determines the city would pay if it issued bonds on the city's water and sewer system on the date the developer contract is countersigned by the city controller.
  • For all other new single-family homes sold to homeowners by fee simple deed, reimbursement to the developer for the following eligible costs:
    • 70 percent of water and sanitary sewer main construction costs,
    • 100 percent of related design costs,
    • All oversizing construction costs not reimbursed under provision above, and
    • The developer's interest cost up to the market interest rate the city's financial advisor determines the city would pay if it issued bonds on the city's water and sewer system on the date the developer contract is countersigned by the city controller.
  • The cap on reimbursement is limited to $1,000,000.00 per contract.

Applications and Forms

• 00455 Affidavit of Ownership or Control Form
• 00551 Notice To Proceed
• 30 Percent Contract
• 50 Percent Contract
• 70 Percent Contract
• Acknowledgement Form
• Checklist 30 pct 50 pct And 70 pct For Developer Participation Contract
• Checklist for Development Assistant Contract
• Checklist For Infrastructure Acceptance
• Development Assistance Contract Final
• Exhibit B 2018
• Request Storm Payment Form

Bonds

• Instructions to Enter Your Information on Bond Form
• One Year Maintenance Bond
• One Year Surface Correction Bond
• Performance Bond
• Statutory Payment Bond

Certificates

• 00641 Contractor Certification of Final Completion
• 00645 Certificate of Substantial Completion
• 00650 Certificate of Final Completion
• 00651 Certificate of Payment
• Affidavit DPC Section IIE Certification

Letters

• 00690 Acceptance Letter for Storm Sewer
• 00690 Acceptance Letter For Street
• 00691 Acceptance Letter For Water And Wastewater Lines

Resource Documents

• DPC Manual
• Ordinance DPC 2001-76
• Ordinance DPC 2005-992
• Ordinance DPC 2008-307
• Ordinance DPC 2008-741
• Ordinance DPC 2010-184
• Houston Code of Ordinances Chapter 47, Article IV