MUDs Grow Texas

Jun 26, 2024

MUDs, or Municipal Utility Districts, are political subdivisions of the State of Texas, overseen by the Texas Commission on Environmental Quality (TCEQ).

MUDs are formed as the primary tool for financing the construction and maintenance of water, sewer, and storm drainage infrastructure within their boundaries to allow for the development of properties. In many cases, MUD's also manage ponds, lakes and waterways, district landscaping and beautification, as well as maintenance.

The main benefits of Municipal Utility Districts are the following:

  • Shared Infrastructure
  • Public Ownership of Utilities
  • Tax-exempt financing Tool (i.e. Low-Interest Rates)
  • Reduced Cost of Housing
  • Reduced Barriers to Entry in Development Market
  • Locally Controlled
  • Growth pays for itself

How Does a MUD Operate?

A MUD engages professional consultants to handle the day-to-day operations: Operators, Engineers, Attorneys, Bookkeepers, Financial Advisors, Tax Collector/Assessors, and Communications.

Each consultant advises the MUD Board of Directors on all matters involved in providing services to its residents, complying with state laws and the regulations of the Texas Commission of Environmental Quality (TCEQ), and owning, operating, and maintaining the infrastructure within the District boundaries.

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