What is a M.U.D.?
Not sure what a M.U.D. is here in Montgomery and Harris Counties? You are not alone! People who are new to our area are often confused as to what these entities are as are many who have lived here for years.
A M.U.D. is a Municipal Utility District. Basically this is how a developed area is able to provide water, sewer and drainage when these services are outside of an area that supplies them. Funds are through the public sale of tax-exempt bonds which then collects ad valorem taxes on all of the taxable property within the M.U.D. Homeowners are assessed an amount on their homes based on the rate that has been established for their property.
When a developer decides to create a M.U.D. and it has to be approved by the State. If approved, the district is named and it is set up with a governing Board of Directors. The M.U.D.'s in Montgomery and Harris Counties are numbered.
Homeowners receive a monthly bill to pay these fees directly to the M.U.D. that they are in. When you are in the process of purchasing a home in our area, you are required to receive a Notice to a Purchaser of Real Property in a Water District. This is a disclosure informing a prospective purchaser prior to signing a contract to buy a home that the home is in a particular M.U.D. This is signed by both the Seller and the Buyer.
So there you have it in a nutshell. There is a lot more information regarding these utility districts and you can get the most comprehensive explanation from a local attorney who helps set up these districts. A municipal utility district is how most of us receive our water and sewer services!
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