Skeptics say that mega-neighborhoods encouraged by such a law will most likely spring up where growth is already happening, contributing to sprawl. They say the bills would give quasi-governmental powers, such as taxation and the right to issue bonds at government rates, to developers without enough public oversight.

"I don't think we ought to be in the business of allowing developers to take over governmental roles," said Sen. Robert Brown (D-Macon). "If there is a demand for housing, you can go to the bank and get financing and get permits from local governments and have controls in place."

Senate Bill 414 is expected to come up for debate in the Economic Development Committee this week. Rep. Larry O'Neal (R-Warner Robins) has introduced similar legislation as House Bill 1323, which is pending in the House Ways and Means Committee, chaired by O'Neal.

The idea of improvement districts is not new to Georgia. State law already allows them in commercial areas, such as the Cumberland Improvement District in Cobb County. That district levies taxes on commercial property and spends the money on sidewalks, roads and planning. But state law does not allow improvement districts for housing.

Florida has allowed neighborhood improvement districts since 1980, and more than 360 neighborhoods have been built there using them.