ROBERT L. EHRLICH, JR., Governor                             Ch. 415

(3) (i) If an existing community receives a public or community sewer
system, an area beyond the periphery of the developed portion of the existing
community may be designated as a priority funding area if the development of the
area beyond the periphery:

1.       has a permitted average density of at least 3.5 units per
acre; and

2.       the area is served by a public or community sewer system.

(ii) The Department of the Environment may provide funding for a
sewer system in an existing community beyond the periphery of the developed portion
of the community if the expansion has a permitted average density of at least 3.5
units per acre.

(e)     An area, other than an existing community under subsection (d) of this
section, may be designated as a priority funding area if:

(1)     the area:

(i) is within a locally designated growth area of the county; and

(ii) is planned to be served under the approved 10-year water and
sewer plan;

(2)     the designation represents a long-term development policy for
promoting an orderly expansion of growth and an efficient use of land and public
services; and

(3)     in that part of the area designated by the local government for
residential use or development, there is permitted an average density of not less than
3.5 units per acre.

(f)      (1) A rural village may be designated as a priority funding area under
this section if:

(i) the village is designated in the county comprehensive plan as of
July 1, 1998; and

(ii) the boundary of the priority funding area is the periphery of the
developed portion of the village as of July 1, 1998.

(2) Funding for a growth-related project under this subtitle is to be
provided only if the project serves to maintain the character of the community and
does not serve to increase the growth capacity of the village except for limited
peripheral or in-fill development.

(g)     The designation by a county OR COUNTIES of a priority funding area under
this section shall be based on:

(1) an analysis of the capacity of land areas available for development,
including in-fill and redevelopment; and

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