Mortgage Lender Serving Celina, TX

Celina's PID policy says districts are created under Chapter 372 of the Texas Local Government Code. The owners of the property petition the city, and City Council establishes the PID by resolution after a public hearing. The policy states that the cost of the improvements is paid entirely by the property owners inside the district, and that the city prefers PIDs over other special financing tools such as tax increment reinvestment zones.

The city's Public Improvement Districts page lists the active districts by name. With that many districts, ask early whether a new-community lot is in one, and get the seller's or builder's documents in writing.

Under the policy, the city enters into an agreement with the tax collecting entity so that the annual assessment is included on the property tax bill, and pursues other collection methods if that is not feasible. The maximum term for special assessments is 30 years for each phase of development, and the principal of a capital PID assessment may be paid in full or in part at any time without a prepayment penalty. Each district has its own service and assessment plan, and those documents, not a general summary, govern the details for a particular lot.

Whether the assessment is collected through your lender's escrow account depends on how it is billed and on the loan, and we confirm that for each property. Either way it counts: under Fannie Mae's Selling Guide, monthly housing expense includes real estate taxes, special assessments and owners' association dues. On a home in a PID, that makes the assessment a real input to debt-to-income and to the loan amount you may qualify for.

The city's policy requires a landowner's agreement recorded in the county's public records, signage and flyers at sales offices and model homes, homebuyer disclosure documents under Section 5.014 of the Texas Property Code signed at contract and again at closing, notice of the PID in builder contract addenda, and disclosure of the PID on any MLS listing. Section 5.014 also states that failing to pay an assessment can lead to penalties and interest or a lien on the property.

Read those documents before you sign, and send us a copy. They show the assessment amount and term that we need for your loan file.

PIDs are not the only kind of district near Celina. Collin County MUD No. 1, for example, is a municipal utility district of more than 1,000 acres outside Celina that builds water, sewer and drainage infrastructure and conveys it to the city. A MUD is a different instrument from a PID: it is created through a state process, it is financed by bonds and taxes, and it levies a property tax on district property rather than a city-imposed assessment.

Celina sits in both Collin and Denton counties. The city's tax page names both the Collin Central Appraisal District and the Denton Central Appraisal District, and the city's PID policy names both Celina ISD and Prosper ISD. Confirm the county and the school district for the exact parcel.

Celina's planned developments are zoning designations that allow customized land use and development standards for specific properties, so the rules can differ between one community and the next. Ask for the community's own documents and HOA dues, which also count toward your monthly housing expense.