A Public Improvement District (“PID”) is a financing tool. The PID enables a city to levy and collect special assessments on property within the city or within the city’s Extraterritorial Jurisdiction (“ETJ”) in order to finance improvements that will benefit the property owners. Public Improvements Districts can be used for right of ways, Art, creation of pedestrian malls, erection of foundations, landscaping, streets, sidewalks as well as water, wastewater, health and sanitation or drainage.
In new home communities, this means that the developer has incurred infrastructure development costs and that the developer will be be reimbursed over time by the beneficiaries of the improvements. In real estate, this means that the homeowners in the community will pay an additional assessment, which is collected in the same way that taxes are collected, until the developer recoups their investment in infrastructure.
When purchasing in a community with a PID, it is important that the buyer understand the PID rate and how this will impact the cost of ownership.
Terry Roberts, Broker/Owner