Houston area water - Clear as MUD!!!!

Services for Real Estate Pros with Kate Writes Right

"What is a MUD and what does it have to do with me buying a home???"

This is one of the fun questions we get to answer when someone moves to the Greater Houston area.  You see, most everything about real estate development is different here. 

We don't have zoning.  But we do have ETJs and MUDs.

NO......not that kind of MUD!!!

We are talking about Municipal Utility Districts!!! 

The majority of properties in the general Houston area are not within the boundaries of an incorporated city.  And because of the lack of zoning, there are few restrictions about where a developer can create a new subdivision.  Without the water/sewer services of a municipality, some kind of system needed to be created to provide those services.

Here comes the utility districts to provide that service.  These districts are taxing authorities that levy a tax (just like a city would) for the specific purpose of providing and maintaining the water system.  The MUD tax rates vary from under .50 per $100 of evaluation -to- more than $1.50 per $100.  And these variances can exist within one subdivision if it has developed over a period of time.

The MUDs must approve and issue bonds to cover the cost of the water service for each district and each real estate transaction requires disclosure of the existence of a MUD, along with the tax rate and the bond information.  It becomes more complicated when a buyer attempts to comprehend the differences in the 3 forms we use for disclosure - dependant on whether the MUD is in the city, outside the city and ETJ, or within the boundaries of an ETJ.

Clear as MUD - Isn't it???

There is no way that I can make someone understand the complex system of MUDs in a blog post.  Nevermind trying to explain the lack of zoning or the ETJ experience.

Suffice it to say - YOU NEED a good real estate agent, whether you are a buyer or seller, in The Woodlands, or any of the surrounding Houston metroplex communities. 


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Kathi Frank

The Woodlands TX
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