Page 119 - ABHR MUD BOOK 2022

Raw Land Municipal Management Districts

• Beginning in the 1980s, Management Districts (“MMDs”) were created to serve
major activity and employment centers in Houston. Almost every major activity
and employment center in Houston is now served by an MMD.
• Over time, the uses and functions of MMDs have diversified, including the
creation of MMDs over raw land to serve new growth and development (“Raw
Land MMDs”). The ultimate function of a Raw Land MMD is quite similar to a
municipal utility district (“MUD”).

• Raw Land MMDs typically have all the powers of a MUD:
o Water/Sewer/Drainage
o Roads
o Parks/Recreation
• Raw Land MMDs may also serve standard MMD functions:
o Supplemental services and improvements for commercial or “town

center” areas;
o Landscaping and beautification projects, particularly for medians and
rights-of-way;
o Additional public safety services;
o Mobility and congestion-mitigation services and improvements; and
o Parking facilities.
• Raw Land MMDs are particularly advantageous to support commercial and

mixed-use developments. In these instances, MUD powers are used in the initial
development phase for water, sewer, drainage, road, and park improvements.
• Once the project is fully developed, commercial property owners in a Raw Land
MMD can initiate the provision of desired supplemental services and
improvements typical of an MMD.

• Raw Land MMDs are utilized where all of the land is owned or controlled by the
developer of a project and the developer is the proponent of the legislation
creating the MMD.
• Just like typical MMDs, property taxes must be voted in Raw Land MMDs.
Additionally, the imposition of an assessment requires a petition from a majority
of affected property owners.
• Raw Land MMDs allow for commercial projects to be developed using MUD

powers and then to utilize MMDs powers if and when commercial property
owners desire. This allows for synergy and economy in development to suit the
particular needs of certain projects.