Elyson by Newland Communities (Katy: island, flooding, job)

[pc50]

Thanks for the correction. Not sure 7 cents makes a difference if it is where you want to live. About $17 per month on a $300k home. Doesn't move the needle.

[96tahoe]

So lets say a MUD has a 1.5% tax rate from inception, after all cost of the what the MUD has done is paid off is it possible the MUD tax rate will go down due to depreciation, maintenance, etc.? I'm not sure what type of cost makes up MUD rates.

[Houston321]

The MUD is actually a bond taken out, and the residents pay it back. So yes, it will eventually get paid off (usually a couple of decades) and the tax will go away. This is why a lot of older areas have no MUD tax. They are usually huge bonds as well, 500-800 million.


I am not sure how much tax benefit you will realize with appreciation however.

[LocalPlanner]

Originally Posted by Houston321

The MUD is actually a bond taken out, and the residents pay it back. So yes, it will eventually get paid off (usually a couple of decades) and the tax will go away. This is why a lot of older areas have no MUD tax. They are usually huge bonds as well, 500-800 million.


I am not sure how much tax benefit you will realize with appreciation however.

That is not true. MUDs levy both debt service and operating / maintenance taxes. Yes, if bonds are paid off, debt service tax goes away. If the district eliminates operating / maintenance taxes, then water / sewer rates will go through the roof - the funds to adequately run the infrastructure must come from somewhere.

Furthermore, MUD bond issues are typically not large; I'm not aware of any of the magnitude you describe.

Another thing to keep in mind: eventually the infrastructure and facilities funded by the developer (who was paid back by MUD bonds) wear out. Sure, it's nice when debt service taxes go away, but what happens when it's time to rebuild the water plant? Unless the district has a huge reserve fund, you're probably looking at a new bond issue. Either that, or lose potable water capacity.

[LocalPlanner]

Originally Posted by curbur

I think it applies to both really, but anyways sorry for sidetracking from the thread.

So upper middle class buyers should not buy in communities where the schools will also have to serve more moderate income homeowners? This kind of thinking is what kills the market viability of places like Copperfield for college-educated buyers.

[Houston321]

Originally Posted by LocalPlanner

That is not true. MUDs levy both debt service and operating / maintenance taxes. Yes, if bonds are paid off, debt service tax goes away. If the district eliminates operating / maintenance taxes, then water / sewer rates will go through the roof - the funds to adequately run the infrastructure must come from somewhere.

Furthermore, MUD bond issues are typically not large; I'm not aware of any of the magnitude you describe.

Another thing to keep in mind: eventually the infrastructure and facilities funded by the developer (who was paid back by MUD bonds) wear out. Sure, it's nice when debt service taxes go away, but what happens when it's time to rebuild the water plant? Unless the district has a huge reserve fund, you're probably looking at a new bond issue. Either that, or lose potable water capacity.

Well Local Planner, I have sold homes in new communities for years, and I see the $$$ numbers for the bonds issued for MPC's. They are also a part of the new home contract. So I am just telling you what I see in writing on legal docs. But you seem to portray yourself as a very important and intelligent person, so you must be right.

[LocalPlanner]

Originally Posted by Houston321

Well Local Planner, I have sold homes in new communities for years, and I see the $$$ numbers for the bonds issued for MPC's. They are also a part of the new home contract. So I am just telling you what I see in writing on legal docs. But you seem to portray yourself as a very important and intelligent person, so you must be right.

Regardless of whether you were being snarky or genuinely complimentary, but I think your dollar amounts were one power of ten too high. Water / sewer /drainage infrastructure isn't cheap, but even for an MPC that would be an extraordinary amount, and the property value needed to be on the ground to service that kind of debt would be huge - meaning the developer would have to wait far too long to be reimbursed through a bond issue. Large MPCs usually have multiple MUDs to allow better timing between the building of the infrastructure and getting enough value on the ground to issue bonds, so the debt happens in smaller but more frequent chunks.

[dd1153]

Elyson model homes are now up. We went out this past weekend and walked both Highland models.
The sales person told us there is a VIP sneak peak event on Sat 9/24 for anyone who wants to see the amenities.
It sounds like there are alot of people interested. The model home park was full of cars already

[Ghost Town]

It is interesting what's going on in Elyson right now. This community is located in a super flood zone. FM 529 west of SH99 always becomes a nightmare during major flood situations.

[new to this]

Is it currently flooding? Please let me know as we are looking to purchase there within the next 10 -12 months.