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More on MUDs

The Chron covers this topic.

A few months ago, a cabinet maker and his wife were recruited to move into a manufactured home parked on a dirt road that was plowed into the woods on the west side of Conroe in Montgomery County.

Daniel and Deborah Spiecher are now the only residents of a newly created municipal utility district, or MUD, carved from 82 acres of land there. They are also the only ones eligible to vote Tuesday on $500 million in proposed bonds to develop that tract.

In fact, they are among just seven voters who will decide the fate this week of $1.07 billion in bonds for roads, water, sewer and recreational facilities in three such districts that were recently formed in this fast-growing county north of Houston. The debt will be repaid with taxes imposed on future residents and businesses. While some believe the MUDs provide a means to bring about high-end development in an orderly way, critics say they are out of control, with developers manipulating the democratic process to essentially take on the roles of cities and borrow hundreds of millions of dollars to make public improvements.

Montgomery County resident Adrian Heath decries the lack of transparency and citizen input into what critics call “rent-a-voter” MUD elections. Heath notes that the billion-dollar MUD proposals make the contentious, countywide election over a $280 million road bond package look like “kid stuff.”

Yet an attorney representing one of the developers for the three MUDs refers to these initial seven voters as “urban pioneers.”

“They move onto the land and help establish new communities, paving the way for the future homeowners,” said Angela Lutz, the attorney for Stoecker Corp., which plans to develop land covered by a separate MUD on Conroe’s west side and also north of The Woodlands. She stressed these elections are completely legal, as well as being “typical and ordinary” and the way MUDs have operated for decades.

[…]

Without MUDs, much of Harris County and The Woodlands would not exist today, he said. In order for MUDs to be confirmed in an election as state law requires, developers have to move residents onto their property to vote, Melder said.

“While the method may seem unusual, it has led to hundreds of thousands of high-quality and affordable homes in the Houston area,” said Lutz, the attorney for Stoecker.

However, others, such as University of Connecticut School of Law professor Sara Bronin, question the “lack of formal democratic process” in these MUD elections, utilizing a small voter pool that is “handpicked by the developer.”

Bronin, who wrote an article for the Fordham Law Review on Texas’ MUDs, notes how MUDs were originally designed only as a vehicle for supplying water to unincorporated areas. Since then, as the number of MUDs has proliferated, their power also has grown, she said.

“The lines are so blurred that you can’t tell much difference between a MUD and what a city can do,” she said.

See here for recent coverage from Your Houston News. The defenders of these MUDs (and their cousin, road utility districts or RUDs) make some good points, but the whole thing feels like magic to me – just put a few people in trailers on some undeveloped rural land, and voila! instant access to hundreds of millions of dollars in credit for your construction dreams – not to mention completely non-transparent. I mean, school bond issues have their share of problems, but at the end of the day every penny gets accounted for. Does anyone believe there isn’t a little grease built in to this process? Good luck finding it. I’d also guess that the sudden appearance of these subdivisions in what used to be pastures and piney woods contributes more than a little to Montgomery County’s inability to keep up with its own infrastructure needs, but that’s their problem. I get that this is legal, but it doesn’t mean it’s a good idea, and it doesn’t mean that the original intent of these districts hasn’t been swept aside. Chalk this up as another reason why I prefer city living. We may have our own problems, but I at least have some say in how things are done.

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2 Comments

  1. C.L. says:

    What a scam.

  2. Ross says:

    For all of the critics, what’s your alternative to MUDs? How would you have the infrastructure for new developments funded? Where would you suggest the hundreds of thousands of new residents live?