How do MUDs provide parks, pools & recreation facilities?
In addition to their common functions of water and waste-water service, MUDs are legally empowered to engage in conservation, irrigation, electrical generation, firefighting, solid waste collection and disposal, and recreational activities (such as parks, swimming pools, and sports courts). A MUD can provide for itself the recreational amenities that are approved by the Board of Directors and funded by the District. What is a developer’s responsibility to MUDs? Developers must petition the TNRCC to create a MUD. Developers are prohibited from serving or placing employees, business associates, or family members on the MUD Board of Directors. Developers must pay for or put up a letter of credit equal to 30 percent of the cost of subdivision utilities. This requirement ensures against “fly-by-night” operators who are not committed to the success of the MUD. The “30 percent rule” also offers protection to MUD residents in the event that a subdivision is not built according to schedule. Unl
