Public Improvement District “P.I.D.” Summary

A Public Improvement District (P.I.D.) in Texas is a common way for a subdivision developer to create infrastructure for the subdivision they are creating.  The developer will choose their location and begin laying out what the development would look like.  The developer would also get in contact with the city that the property is in so that the development follows the local guidelines.  The developer may see a need to create a P.I.D. so that they can recoup money they pay upfront for lights, sidewalks or many other uses.  Once the developer sees the need to establish a P.I.D. they request the city to sponsor their P.I.D. through the city’s formal process.  There are two local government codes that P.I.D.’s can be created under in Texas: 372 and 382.  For example, the P.I.D.’s in Conroe and Tomball are created through government code 372.  Once the city has approved the P.I.D. the citizens that live in that subdivision will be assessed a P.I.D. tax and it can be seen under the jurisdiction section of the taxes.  A citizen that is paying a P.I.D. tax can pay off their portion at any time.  IMPORTANT NOTE—there may be some lag time from the creation of the P.I.D. and the P.I.D. tax showing up on the tax records.  This can vary but is typically when the subdivision has it’s first completed home.  New home developers in Tomball and Conroe have been given information from their respective cities for the public about the P.I.D.’s they have created.  The total number of P.I.D.’s in Tomball and Conroe at the time of this article was 17.  The trend is for new developments to create a P.I.D.

Can an existing subdivision create a P.I.D.?  The answer is they can, but they usually don’t.
Let’s say you live in a subdivision that has sidewalks that are cracked badly, they look horrible, and you can’t even push a stroller without it being dangerous. The homeowners in that subdivision could approach their Homeowners Association and ask them to create a P.I.D. to fix the sidewalks.  The H.O.A. would need to gather a petition with more than 50% of the homeowners agreeing to the P.I.D. tax.  That petition would then be taken to the city for a hearing.  The hearing is where it goes bad if the H.O.A. did not get a large majority agreeing to the P.I.D.  Citizens do not usually give themselves a new tax to pay, but it can be done and that’s pretty much the process.  It is rare to see a new P.I.D. created in a subdivision that is established.

Here are some other details you might want to be aware of.  If a person lives in a P.I.D. and they wish to sell, they MUST provide notice of the P.I.D. to the buyer before the contract is executed.  Sellers that are selling condominiums, new construction, raw land, commercial and residential homes all must provide the P.I.D. notice.  The seller should be aware that they are in a P.I.D. for one of two reasons.  The first way a seller should be aware if they are in a P.I.D. is they are and have been receiving a bill for that P.I.D.  If this is the case the P.I.D. should show up in the Jurisdiction section of the tax records. The second is that if a new P.I.D. has been created or is in the process of being created the seller would have received notices in the mail for hearings about the P.I.D. that was created or in the process of being created.  In this case the tax records may not show the P.I.D. since it is new or still in the creation process. Click here to review EXEMPTIONS under the Texas Property Code but remember Condominiums are NO LONGER exempt.

Stay Safe During the Coming Storm

Wouldn’t you know the last full week in August and Texas has a hurricane headed it’s way.  Nothing new to our little slice of paradise.  If you haven’t checked your pantry, you need to do it quick.  Water, canned food, etc. all the staples for a hurricane.  Gassing up your cars also a good preparation for a hurricane.  We never know how long we will be without power so…be prepared as you can.  You also are going to walk your property and bring all the items that could be flying rockets if we get some extreme winds…bird feeders, yard gnomes, pool equipment, lawn furniture.  With the right wind speed these items can can off like….well rocket.  The same is true if you are renting. If your home is for sale bring in your for sale sign and put it back out after the storm passes.  Better for you to stay safe than have your “for sale” sign flying through your neighborhood.

Stay safe and let me know if I can help you to…

Live Life to the Fullest,
Scott

Real Estate Can Move On

There is no discussion when it comes to how weird things are right now so I am not going down that path with this article.

What I want to make perfectly clear is that your real estate needs can still be met in these trying times.  I have been a professional real estate agent for over thirteen years and with every year we have had technological advances.  Back when I first started, in order to know where you were going you had to have a KEYMAP for the county you were doing business in.  I  started my business on the northern border of Harris County and the Southern border of Montgomery County in Texas.  So two Keymaps, which was a binder full of maps,  and away I went to literally help my clients find their next home.  Shortly after I started working as a real estate agent my family bought me my first GPS device and I haven’t looked back since.  I haven’t used that device in years because, you guessed it… I now get that information on my phone.  Apple maps, google maps, waze and other phone apps have all made my GPS devise obsolete for the way I do business.  You can still buy a GPS, but you can also still buy a KEYMAP.

Technology has also advanced in how I write and present offers to and for my clients in real estate.  Through the years my ability to digitally send and have clients sign a contract has gotten better and better.  My clients and I no longer have to meet one on one to go over the contract.  We can use Zoom or  Skype or a ton of other digital methods to communicate.  These bits of technology do not take the place of human interaction, but instead, help me to maximize the real estate experience by being able to work with my clients when they need me.  Clients no longer need to drive across town in order to sign documents, this can be done easily on their time table in the comfort of their home.

Time is of the essence and if you haven’t seen that phrase in real estate it is there, trust me.  Digitally signing documents does not mean that another offer will not be accepted over yours.  Digitally signing documents has the potential of getting your offer to the other party faster, but you still have to do your due diligence and most of all “MAKE A DECISION”.

Viewing a home online has also seen advances, but it has also given the sellers the ability to misrepresent their homes.  Beware of all the visual tricks that sellers use when selling their homes.  Painting their front lawn green when there has been no rain and a lawn watering ban, making rooms look bigger than they really are, adding wispy clouds or artificially sharpening the photos.  Then there is what I call the basics, reporting the square footage wrong.  Doing any of these things is deceptive and needs to be stopped.  If you as the buyer finds a home that you know has taken part in these type of deceptive practices, what else are they hiding from you?  Did they falsify their seller’s disclosures, WHERE DOES IT END?

If you are a buyer you will need to visit the property that you are buying, it is in your best interest.  Do as much due diligence before you visit the property.  View all the photos, view the maps, confirm the schools, review the route to work, read the sellers disclosures, review the FEMA flood maps, drive the neighborhood anything else you need to review PRIOR TO VISITING THE HOME.  Your home visit now becomes a quick yes or no proposition.  Now in these trying times, you may have to wait a little longer due to self-quarantine and that is understandable.   I have had homes in the past that canceled showings due to illness and I respect them being upfront.  I would hope that all sellers would be honest about their health and the same goes for buyers.

The internet, apps and fancy websites can not and no attempts should be made to replace the human nature of real estate.  People need people especially during times like these.  I have embraced the technology available to help my clients with their real estate transactions.  I have worked with clients while they were in Mexico and even in Dubi.  We even have the ability through the title company to have a remote or mail out closing and this also is getting better with time.  Many title companies are also working on receiving the earnest money funds by wire transfer which also gives more flexibility to the process.  Real estate should not be slowed during these times, the technology is available to help you to…

Live Life to the Fullest…and I can help.

Scott