Residents in neighborhoods and housing subdivisions can occasionally see, or even vote on, the creation of special districts to provide additional services and resources such as utilities, public safety improvements and sidewalks. While some special districts have overlapping characteristics, these special districts can vary in terms of responsibilities, regulations and fees.

The details

Special districts can include homeowners’ associations, or HOAs, municipal utility districts, or MUDs, property improvement districts, or PIDs, and tax increment financing districts, or TIFs.

Each district is created with a goal to provide specific services to a housing division, according to a report from Austin Title.

For example, MUDs are typically created for divisions in which a city does not provide utilities, typically due to city limits. MUDs construct and manage utilities such as water and sewage systems so that residents in the neighborhood can receive those services.

PIDs can be used for MUD purposes, but can also be used for other infrastructure or development such as roadways, parks and recreation and affordable housing.

HOAs regulate the subdivision to preserve home values. HOA members typically manage the character of a neighborhood through overseeing maintenance of shared spaces such as gardens, pools and parks, as well as hosting community events. Residents who move into an HOA-managed area are automatically enrolled in the HOA.

TIFs are created so that cities can reinvest additional revenues generated from new developments and higher property values back into a specific housing region.

What else?

While special districts have general responsibilities and standards, regulations will vary by organization, city, county and other governing bodies.