Public Improvement District (PID)
What is a PID?
Definition: A Public Improvement District (PID) is a defined geographic area, i.e. a neighborhood, within which public improvements may be financed through the use of special assessments.
Authority: The Texas Local Government Code (LGC), Chapter 372, authorizes municipal Governing Bodies (Cedar Hill City Council) to approve PIDs in their cities when it finds that the creation of the PID “promotes the interests of the municipality.”
Regulation: City Council adopted a PID Policy which establishes guidelines for PID operations.
How is a PID formed?
Any neighborhood, group of neighborhoods or any other geographical area with Cedar Hill’s jurisdictional limit can form a PID so long as more than 50% of the property owners within that area agree they want to, and the City Council approves their petition to do so.
A petition for the establishment of a PID must be submitted to the city and include the following:
- the general nature of the proposed improvement;
- the estimated cost of the improvement;
- the boundaries of assessable property;
- the property assessment cost;
- whether the management of the district is to be by the management company, or a partnership between the community and the private sector;
- that the persons signing the petition request or concur with the establishment of the district; and
How much is the assessment?
All PIDs in Cedar Hill have a current assessment of 0.10¢ per $100 valuation. Example:
Appraised value $150,000 divided by $100 multiplied by $0.10 equals $150 per year
The special district, established by State statute, levies an additional assessment on all properties within specific boundaries. Typically a percentage of the appraised value of the property, the assessment is reflected on the annual tax statement and confers a special benefit on definable parts of the improvement district.
High Pointe PID (est. 1998)
Waterford Oaks PID (est. 2002)
Winding Hollow PID (est. 2015)
Windsor Park PID (est. 2017)
Cedar Crest PID (est. 2020)
Click here to see a map of all current PIDs in Cedar Hill.
Interested in creating a PID? Contact Neighborhood Services at email@example.com / 469-272-2801.
What are the benefits of a PID?
A PID allows for improvements and a higher degree of maintenance within the PID area which presumably enhances the property values.
With the establishment of an advisory board, the property owners within the PID have control over the types of improvements, level of maintenance, and amount of assessments to be levied against the property owners.
Assessments are usually collected by the city’s tax collecting agent and are deposited into a specific PID fund. Revenue collection is simple since a homeowner’s association does not have to perform fee collection. Also, the PID allows for an interest charge and lien on unpaid assessments. This ensures a dependable revenue source for the PID. In most instances, mortgage companies include PID assessments within the property owner’s escrow payment and pay the assessment at the same time that ad valorem taxes are paid.
PID improvements may include:
- landscaping and irrigation;
- erecting fountains, distinctive lighting, and signs;
- constructing or improving perimeter fencing;
- constructing or improving sidewalks;
- acquiring and installing pieces of art or decorations;
- acquiring, constructing, or improving entry features;
- establishing or improving parks;
- paying expenses incurred in establishing, administering, and operating the district.