Local governments cannot always do everything they would like to do for their residents. Sometimes extra revenue is necessary to meet the needs of new residents.
A public improvement district (PID) is a taxing entity which can finance and construct public improvements. A PID may be formed to address many types of public improvements. It has authority to issue debt and assess property within the district.
How does a Public Improvement District Work?
A PID begins with a plan. The plan identifies the proposed improvements and the cost of construction. It also identifies how the project is to be financed. Finally, the plan identifies the cost to each of the property owners who will benefit from the proposed improvement. The plan also serves as the basis for a petition requesting that the district be formed.
What are Some of the Benefits of a Public Improvement District?
PIDs represent such an effective and reasonable financing tool that communities are frequently able to provide services and amenities that would not otherwise be available. These amenities and features can be a real plus for the residents while at the same time attracting economic-based services and jobs directly relating to communities. PIDs can represent a true win-win situation for everyone.
How Does a Public Improvement District get Formed?
Owners of the land within the proposed PID can petition to have a district formed, and the governing body of the jurisdiction in which the district is located must approve. That approval is subject to an acceptable plan, a public hearing, and an election by the impacted land owners within the proposed district.
Along with a Petition, a plan must be submitted to the governing body. The plan must include a description of the proposed project, the area comprising the district, estimated costs of improvements, proposed financing methods, and anticipated tax or special levies.
A public meeting is held at which time interested parties will be given information about the proposed district and may provide input to the governing body.
After the Public Hearing the governing body may decide to hold an election on the question of formation of the district. All property owners within the proposed PID will be eligible to vote in this election, with a majority needed to form the new district.
Quick Update on PIDs
The 2013 New Mexico legislature enacted a number of new disclosure requirements and funding limitations related to PIDs, which will provide greatly expand protections to the consumer, real estate agents, builders, and others with a vested interest in any individual PID. These new requirements and restrictions go into effect on July 1, 2013.
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PID Communities with Albuquerque
- Ventana Ranch West
- The Boulders
- Montecito Estates
- Mesa del Sol
- The Trails
*Note: Many have noted the problems associated with the PID at Mariposa. It is important to know that the PID at Mariposa was a “one off” and was unlike any other PID in New Mexico and even unlike most across the United States. Between the protections that the 2013 New Mexico State Legislature provided and the significant changes the investors of the PID bonds have agreed to, Mariposa has now come in line with the many PIDs that exist across the Albuquerque area and the country.