Description of an AFA
An Advance Funding Agreement (AFA) is a negotiated contract
between TxDOT and a local government, another state agency or another
state where both parties agree to a funding arrangement to contribute
funds, labor, raw materials, or land, in order to develop or maintain
a highway project required by 43 TAC §15.55.
A local government may be a:
- city,
- county,
- river authority,
- independent school district,
- municipal utility district,
- other local governmental agency,
- private or public utility company,
- railroad, or
- other political subdivision of this state, or special district that has the authority to finance a highway improvement project.