What is a MUD?

A Municipal Utility District (MUD) is a special purpose district heavily regulated by the State of Texas. Traditionally, these districts allowed the financing of development in unincorporated areas that lacked utility services or a municipality; As opposed to incorporated areas, like The City of Mont Belvieu where growth in the public infrastructure services is traditionally funded and operated by the City or Municipality and its taxpayers. Riceland MUDs do not fit the traditional model for MUDs. In Riceland, we have “In City MUDs”. These are unique and not like any other MUDs in the greater area of Chambers and East Harris Counties. They do several very positive things for the City, the current city tax payer, and Riceland.

  • First, it allows the growth of the public infrastructure to occur without the city and the current city taxpayer paying for $1 dollar of that construction. 100% of the cost is on the developer and any future reimbursement of any portion of those costs rests 100% on any property owner who purchases land (residential or commercial) within the Riceland MUD. Riceland does not include any current property owners within the City (residential or commercial) outside the Developer itself. Even if you own property that is next door or touches Riceland, you are not in the MUD.
  • Second, the Riceland MUD’s are not developing any separately owned treatment plants – this means once construction is complete, The Riceland MUDs will own zero physical assets – all of the infrastructure is turned over to the city ownership at completion. Future Riceland residents will purchase their utilities from The City of Mont Belvieu. This is a benefit because once any future reimbursements are complete, the MUDs dissolve and go away forever as they will have no assets to operate and maintain. Thus, the City of Mont Belvieu gets all of the expansion of its public utility infrastructure and roads within Riceland at no cost to the City and its taxpayers.
  • Third, any future reimbursement depends on the Developers ability to deliver value within the MUD – so the Developer is motivated to deliver an amenity package and residential development quality to achieve any reimbursement for the public infrastructure portion. This allows the developer to use additional funding to add to the amenity package and public areas within the development.

Show All Answers

1. What is a "master-planned community"?
2. What is the benefit of a master-planned community?
3. Where will Riceland be located within Mont Belvieu?
4. Will the development really bring 4000 new homes to Mont Belvieu?
5. I like the hometown feel in Mont Belvieu. Isn't this going to ruin it?
6. What will Riceland look like?
7. Will Riceland make my taxes go up?
8. Does Riceland benefit current residents in any way?
9. Won't all of these new homes overtax the City's utility system?
10. How is traffic going to be addressed with all of these new homes coming in?
11. What is the connection between Riceland and the City's new downtown/town center?
12. How are the developers paying for Riceland? Or, is the City paying for it?
13. What is a MUD?
14. Riceland is clearing a lot of land. Aren't you concerned about the natural spaces and animal habitats?