Are you a homeowner wondering what a "PID" policy is?
Why do certain areas or neighborhoods have PIDs and others don't?
A Public Improvement District, or "PID", is a designated area where property owners pay a special assessment for improvements and services within that area. The services must benefit everyone in the entire PID area, and are usually supplemental to the local services already provided by the city. PID assessments are often used for improvements such as roads, utility relocation, water distribution, wastewater lines, drainage improvements, landscaping, and improving parks.
Here are the answers to some FAQs regarding PIDs:
Are there benefits to a PID?
A public improvement district can provide beneficial funding for supplemental services and improvements that meet the needs of the community that could not otherwise be constructed or provided.
How are PID assessments calculated?
A public improvement district may be initially funded through either cash or bonds. Bonds are issued based on the property's appraised value and are determined by property size and potential improvements to land value.
How is the PID assessment paid?
Paying PID assessments vary according to the respective public improvement district. Some PID payments are collected by the County Tax Assessor with other property taxes. Other PIDs may designate a trustee to collect the payments.
What does the PID assessment pay for?
The collected payments contribute to various improvements, such as:
- Enhancing landscapes
- Additional public outdoor spaces
- Lakes and fountains
- Improved city parks
- Shade structures
- Various recreational and pedestrian improvements
Are PID policies permanent?
Public improvement district assessment policies end when the tax levied against a property (such as a home) is paid in full. PID assessments may be spread out over 20-40 years, or they may be paid in full up-front.
If you have any further questions about PIDs and how they affect homeownership, don't hesitate to contact us today. We're more than happy to answer any questions you may have about owning a home!
Ronda's extensive business experience contributes a well-rounded dimension as the broker for Texas Living Company. Her passion for architectural design motivated her advancement from a career in marketing, business development and supply chain management in the oil and gas industry to residential real estate.