- There are a lot of misconceptions about Municipal Utility Districts (MUDS).
- MUDs ARE GOOD FOR TEXAS.
- A MUD is a mechanism to provide utilities that has worked in Texas for over 50 years.
- MUDs are good for Texas because they create quality growth, infrastructure and communities.
- MUDs keep home ownership affordable in Texas!
- It costs homeowners more to buy a new house without a MUD because the cost of infrastructure is added to the cost of the new house.
- That extra cost could keep a buyer from affording a house.
- Paying MUD taxes over time while owning the home is easier than coming up with the money when purchasing the house.
- The MUD constructs, finances, and oftentimes operates the quality infrastructure needed in our communities today, like water, wastewater, drainage, park and road facilities.
- Because there are no residents at the outset of a new community, initial residents must vote to approve the bonds and taxes.
- HOWEVER, every potential homeowner is given detailed notices of the MUD, the MUD taxes, and the potential MUD bonds before the home purchase.
- MUD infrastructure has to be built before the homes can be constructed. All costs to design and construct this infrastructure are paid by a developer. As the community grows, the MUD can reimburse the developer for infrastructure costs, subject to the strict requirements of Texas law and the Rules of the Texas Commission on Environmental Quality (TCEQ).
- The MUD can only reimburse the developer as the community grows because the TCEQ requires a sufficient tax base to support the reimbursement.
- Homeowners are well aware of the advantages and the costs of buying a home in MUDs and choose to live in MUDs.
- MUD infrastructure includes state-of-the-art, centralized, regional water and wastewater facilities that are environmentally necessary and keep our bayous, streams, and bay clean.
- MUDs are fair to existing residents. The existing community in which the development is built DOES NOT pay for the cost of infrastructure for the new development-only residents in the new community pay for it.
- Growth pays for itself!
- The MUD is created by either the TCEQ or the Texas Legislature.
- The operation of MUDs is heavily regulated by Texas law and the TCEQ. MUDs in the extraterritorial jurisdiction of a city are further regulated by that city. MUDs are subject to the same legal requirements as other forms of local government. MUD bonds are heavily scrutinized by the TCEQ before they can be issued.
- Over the last 50 years, the vast majority of the high quality growth in the Greater Houston Region has been developed through MUDs. Hundreds of quality neighborhoods have been created using MUD infrastructure.
