Page 115 - ABHR MUD BOOK 2022
P. 115
MUNICIPAL MANAGEMENT DISTRICTS IN TEXAS
Municipal Management Districts or “Improvement Districts” or “MMDs”
("Management Districts") have been used since the 1980's as a means to allow
commercial property owners to work together to supplement City and County
services and improvements. The use of Management Districts started in the Houston
area when property owners identified common problems and issues in their area and
used their Management District to implement solutions to those problems. Because of
their flexibility and practicality in addressing solutions to a diverse set of common
problems, the use of Management Districts has increased in recent years.
A Management District is governed by a Board of Directors. Typically, the initial
directors are appointed in the creation legislation and all future directors are
appointed by the city, the county, or the Texas Commission on Environmental Quality
(the “TCEQ”) from nominations made by the district. The number of board members
varies from district to district depending on the size and nature of the district.
Generally, board positions are established in a manner that reflects the composition of
the assessment-paying, commercial property owners of the district. Major
landowners typically each have a representative on the board. Directors are usually a
resident, landowner, or an agent, employee, or tenant of a landowner within the
district.
Management Districts are an extension of city government that allow taxpayers to
beautify their neighborhoods and improve local economic conditions. In utilizing
Management Districts as a development tool, city leaders improve the lives of their
citizens while maintaining ample oversight and control of the administration and
action of said districts.
History and Purpose
Management Districts can be used in three distinct contexts: to support existing major
activity centers, to promote neighborhood revitalization and to support raw land
development. The extent of these uses has evolved over time, particularly in the
1
