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Business Journals
5 days ago
- Business
- Business Journals
Financing the future: How special districts are shaping the path to attainable housing in Texas
Texas is in the midst of a housing attainability crisis — one that's growing more acute by the year, particularly in rapidly developing regions like North Texas. As the median home price pushes past $400,000 and the average first-time homebuyer approaches age 39, the long-held perception of Texas as a haven for affordable housing is being challenged. According to Steve Robinson, founding partner at Allen Boone Humphries Robinson (ABHR), these pressures are not just reshaping the real estate landscape — they're threatening the very foundation of the so-called 'Texas Miracle.' 'If we can't house our people — if workers can't afford to live where the jobs are — it's going to stifle the economy,' Robinson says. 'What we do at ABHR is help build great communities. We use innovative financing tools to make those communities more attainable for more Texans.' One of the most powerful tools in Texas' housing development toolbox? The Municipal Utility District, or MUD — a mechanism Robinson and his team have helped deploy across the state to fund critical infrastructure and enable large-scale, master-planned developments. What exactly is a MUD? At its core, a MUD is a governmental entity empowered to levy taxes in order to finance public infrastructure — think water, sewer, drainage and roads. Originating in the Houston area more than 60 years ago, MUDs were initially developed to address the city's explosive growth. Today, they've become a cornerstone of real estate development across Texas. 'MUDs allow developers to shoulder the upfront costs of infrastructure in areas where cities aren't extending services yet,' says Kelsey Taylor, attorney at ABHR. 'That means development can proceed where demand exists, instead of waiting years for a city to act.' Importantly, MUDs also promote long-term planning by allowing developers to phase infrastructure alongside home construction, resulting in cohesive, high-quality communities. These districts are governed by locally appointed boards and regulated by the Texas Commission on Environmental Quality (TCEQ), which provides layers of public oversight that enhance accountability and quality control. Texas vs. the nation: What makes our system different? While special districts are common across the U.S. — with California's Mello-Roos districts, Florida's Community Development Districts (CDDs) and Colorado's Metropolitan Districts — Texas' MUD system stands out for its financial structure and regulatory rigor. 'Texas' system is unique in that it is reimbursement-based,' Robinson explains. 'The developer takes the risk — building the public infrastructure and private development first — and is only repaid after performance.' This structure, paired with tax-based financing rather than assessments, results in lower borrowing costs and greater financial stability. Since the current rules were implemented in 1989, Texas MUDs have maintained a 0% default rate. 'This is a performance-based system with very high oversight,' Robinson notes. 'It's efficient, it's stable, and it's the largest and most robust system of its kind in the country.' Speed, scale and attainability While MUDs don't directly shorten development timelines — they generally take about a year to form — they dramatically improve the financial feasibility of development by decoupling public infrastructure costs from home prices. 'If you can remove $100,000 in infrastructure costs from the lot price, there's a broader group of people who will qualify for a $400,000 mortgage instead of a $500,000 one,' Robinson says. 'That increases attainability, which in turn increases the velocity of development.' Taylor agrees. 'In many areas, without a MUD, development wouldn't happen at all. Developers would simply pass on the opportunity. With a MUD, they can move forward, and that speeds up access to housing.' Funding amenities and green space Although certain counties — primarily in South and Central Texas — allow MUDs to issue bonds specifically for park development, North Texas does not currently have that capability. Still, MUDs play a significant role in creating amenitized communities by reallocating reimbursed infrastructure dollars toward parks, trails and public gathering spaces. 'Today's buyers expect more than just a home — they want vibrant communities,' Taylor says. 'While we can't use tax-secured park bonds in North Texas, we can leverage other financing tools to support those amenities. That's part of what we love to do: find creative solutions that enhance quality of life.' A North Texas transformation While MUDs have long been embraced in the Houston area, their use in North Texas has historically been limited. That's changing — and fast. 'There are more than 200 cities in North Texas, most with their own water and sewer systems,' Robinson explains. 'Development used to be constrained to areas where those services were available. But with rising land prices, interest rates and infrastructure costs, developers began asking why comparable homes in Houston were significantly less expensive. One big answer was the use of MUDs.' Over the last decade, legislative changes and market forces have paved the way for widespread adoption of MUDs in the Dallas-Fort Worth metroplex. Today, virtually every major master-planned community in North Texas is using a special district to finance infrastructure — something that would have been rare just 10 years ago. Spotlight: Viridian in Arlington One standout example is Viridian, a master-planned community in Arlington that was made possible through a Municipal Management District (MMD) — a cousin of the MUD structure that offers expanded flexibility. Developed on challenging land within the Trinity River floodplain and adjacent to a landfill, the project faced steep financial and logistical hurdles. "It is critical that cities and counties invest in their community development. These district tools can achieve best in class environments for cities with the right developers. Viridian is one great case study of PPP success," says Robert Kembel, partner and president of The Nehemiah Company. Unlike traditional MUDs, MMDs can levy assessments to reimburse costs for features like parks and public amenities — expenses that are difficult to fund through bond financing in North Texas. That gave Viridian the resources to create a highly amenitized, high-quality community complete with trails, green space and even a 90-acre lake where residents can sail. 'Arlington didn't have much new single-family housing stock,' adds Robinson. 'Viridian brought it in at scale, in a part of town that had been previously overlooked. The district financing model made it all possible.' The path forward As Texas continues to grow, MUDs will play an increasingly vital role in ensuring that housing remains accessible, communities remain livable and economic growth remains sustainable. In Robinson's words, the model is the ultimate public-private partnership. 'Cities can't always move fast enough to meet demand,' he says. 'MUDs allow the private sector to take that risk, while still complying with public oversight. It's a powerful model that allows Texas to keep growing — and to keep the dream of homeownership within reach for more families.' To learn more about ABHR, visit
Yahoo
22-04-2025
- Business
- Yahoo
Leif Kertis Q&A: Council Place 4 candidate outlines city priorities, infrastructure vision
Editor's note: The Amarillo Globe-News is running several Q&As involving Amarillo city candidates ahead of the upcoming May 3 election, with early voting starting April 22. Look for more of these questionnaires in the Globe-News and online at Leif Kertis, a business owner and former regional finance manager, is running for Amarillo City Council Place 4. With a background in construction, corporate finance, and community ministry, Kertis says his campaign is focused on practical solutions to modernize infrastructure, increase transparency, and make Amarillo a more inclusive and economically thriving city. In this Q&A — edited for clarity and length — Kertis outlines his priorities for the city and how he plans to deliver results for underserved communities. Q: What infrastructure projects would you prioritize, and how would you fund them without overburdening taxpayers? A: We need to stop neglecting historically underserved neighborhoods like North Heights and Eastridge. Residential infrastructure in those areas has been overlooked for too long. The elephant in the room is the wastewater treatment plant — it needed to be addressed yesterday. Funding will have to be creative: federal and state grants, public-private partnerships, and the MUD (Municipal Utility District) program are all tools we need to use. These projects have to move forward without putting the entire burden on local taxpayers. Q: How would you support police and fire departments, especially after recent pay increases? A: The council did a good job getting our first responders closer to where they need to be, but we can't play catch-up every year. We're still short about 30 officers. We need to think long-term — what does recruitment and retention look like five years from now? That starts with supporting leadership, improving facilities, and showing that the city stands behind these departments. I'll be out there at recruitment events, shaking hands with potential recruits, and making sure they know they have support at the council level. Q: What's your strategy to attract businesses while supporting local growth, especially in underserved areas? A: First, we need to get the Amarillo Economic Development Corporation (AEDC) back in order and make sure it's operating with accountability. Amarillo is the true gateway to the West — and to the rest of the U.S. We should be attracting logistics and manufacturing companies naturally. But economic development has to include the people already here. If companies like Amazon are benefiting from tax abatements, they should help improve infrastructure in neighborhoods where their employees live. That's where public-private partnerships come in. Q: Given Amarillo's reliance on the Ogallala Aquifer, what water strategies would you support? A: Water reclamation needs to be a major component of our wastewater plant expansion. Can we use reclaimed water for agriculture to ease strain on the aquifer? What hybrids and xeriscaping techniques make sense for our region? We're in a desert — green lawns shouldn't be the default. This will take collaboration with the groundwater district and long-term planning, not just quick fixes. Q: How would you ensure government transparency and responsiveness to the public? A: We need to be more available. I'd follow Councilmember Scherlen's model by holding regular town halls in off weeks. I also support publishing simple 'vote justifications' online — just a few sentences on why a council member voted for or against an issue. It's not about writing legal briefs, just accountability. And we need more active community boards to inform council decisions before they hit the agenda. Q: What's your stance on the Civic Center and how would you address the public divide? A: I used to work in sports entertainment with the Amarillo Venom and have firsthand experience with the Civic Center. The public wasn't properly informed last time, and too many unrelated items were bundled together. We need a modern facility, but it can't come at the sole expense of taxpayers. A private partnership model could allow a promoter to lease and operate the venue, easing the city's burden while bringing in better events. The Civic Center can be a revenue generator, not a loss leader. Q: How would you balance affordable housing needs with Amarillo's rapid growth? A: We have to modernize our infrastructure first. If we can't get utilities to the 18K zone or other areas, developers won't build here. I also want developers to understand the pulse of the city — don't drop luxury housing in areas where it'll displace long-time residents. We also need to partner with tax assessors to stop massive jumps in property valuations. Housing affordability isn't just about rents and mortgages — it's about taxes too. Q: What's your plan to better connect with areas like North Heights and Eastridge? A: I'll be out there — meeting people, listening, and not just as a council member, but as a fellow Amarilloan. These communities need real engagement, not token gestures. Many don't even know they qualify for resources like SBA loans or Enterprise Center support. We need to fix that and ensure local entrepreneurs have a fair shot. Q: How would you approach the city budget while ensuring essential services remain funded? A: We need to move to a zero-based or incentive-based budget model. Every department should justify every expense. I've managed a $250 million corporate budget — this isn't new to me. But cutting for the sake of cutting is harmful. We need intelligent analysis, transparency, and community involvement in the budget process. People need to understand where their money is going — and they deserve answers when something doesn't add up. Q: What's your long-term vision for Amarillo, and how will you define success after two years? A: Success is a thriving Amarillo where all communities — north, south, east, and west — see progress. Where infrastructure is up to date, AEDC is reformed and attracting the right businesses, and where public safety departments are focused on retention instead of scrambling to fill vacancies. Within two years, I want outdated city codes cleaned up and policies that reflect today's Amarillo, not the past. I'm running because I want my daughter—and everyone's kids—to have a reason to stay here and thrive. Kertis moved to Amarillo in 2008, originally from Allen, Texas. He holds three degrees from West Texas A&M — criminal justice, an MBA, and a master's in finance and economics — and is currently pursuing a master's in Christian studies from Denver Seminary. His business ventures include a construction firm, a consulting agency, and a sports entertainment company. He also teaches finance and life skills through ministry programs at First Baptist Church and the Christian Job Corps. This article originally appeared on Amarillo Globe-News: Amarillo City Council Place 4 candidate Leif Kertis Q&A priorities
Yahoo
12-04-2025
- Business
- Yahoo
Cole Stanley Q&A: Amarillo mayor outlines city projects he wants to see through
Editor's note: This is the third of several Q&As involving Amarillo city candidates ahead of the upcoming May 3 election, with early voting starting April 22. The first three have focused on those running for Amarillo mayor — Jason Herrick, incumbent Cole Stanley and Misty Collier. Look for more of these questionnaires to run in future editions of the Globe-News. Cole Stanley, Amarillo's current mayor, is running for re-election after a first term focused on upgrading the city's infrastructure, bolstering public safety, and stewarding local finances. In the following Q&A — edited for clarity and brevity — he details his vision for Amarillo's continued growth and explains why he believes he's best positioned to see existing projects through to completion. Q: Amarillo's streets, water system, and utilities need ongoing attention. Which projects top your priority list in the next term? A: From my first month in office, we've zeroed in on the Wastewater Treatment Plant (WWTP). Flooding damage revealed longstanding issues that should've been addressed decades ago, so we teamed up with the Army Corps of Engineers and Congressman Ronnie Jackson. We've secured $38 million for design work, which should wrap up within a year. After that, we'll build a new or upgraded facility over two to three years. That remains priority one. Q: How do you plan to further support police and fire services, especially following the recent pay raises for first responders? A: The pay hike worked better than we imagined. Morale surged, and our latest academy class drew about 200 applicants — up from only a few dozen in previous years. That could lead to 25 to 30 new graduates, versus the usual 7 or 8, putting us near full staffing for the first time in about a decade. Another raise — maybe $5,000 per badge — could solidify our competitive edge in Texas. Q: How do you plan to attract new businesses while supporting existing ones, especially in underserved areas? A: Skilled labor drives economic decisions these days, so AmTech's training programs are critical. Companies see our strong transportation links and available land, but the real hook is a ready workforce. On housing, we can't just push development outside city limits. By working with developers through a Municipal Utility District (MUD) — which finances and manages utilities like water, sewer, and drainage — we help offset infrastructure costs while keeping new neighborhoods under our future city boundaries, ensuring sustainable tax growth. Q: Given Amarillo's reliance on the Ogallala Aquifer, how would you secure the city's water supply? A: We have to plan for neighborhoods south of the city that depend on wells and septic systems. Those wells will eventually run dry. We're partnering with Randall County to buy additional water rights before that happens. With a cooperative approach, we can expand infrastructure to serve these areas without depleting the aquifer or risking that Amarillo's water will be redirected elsewhere. Q: Many residents still worry about government transparency. How will you maintain openness within City Hall? A: We make sure every council discussion happens in public. Our meetings are streamed live, and I take part in regular interviews, town halls, and Q&A sessions. We also highlight what's working, what isn't, and how we plan to fix any shortcomings. That openness has defined my term, and I'll keep it going if re-elected. Q: The Civic Center bond issue was a hot topic in past elections. Where do you stand on expansions or renovations? A: My focus is first on essentials — like the WWTP, roads, and public safety staffing. Once those are addressed, then we can consider Civic Center improvements. Let's optimize what we have, maybe working with a third-party promoter to bring in bigger events and operate profitably. We don't need a $550 million overhaul to keep Amarillo entertained and the venue thriving. Q: How do you balance affordable housing demands with city growth, ensuring infrastructure can keep up? A: We shouldn't be pushing new developments outside city boundaries, because that loses potential taxpayers. The MUD policy allows developers to eventually recoup infrastructure costs but keeps those homes within our future limits. That means more efficient use of water and sewer, plus more revenue to help keep housing prices in check. Q: With fiscal responsibility a top priority, how do you plan to fund core services without raising taxes? A: We need to expand our tax base — another reason MUDs matter. We also track every dollar in the budget. We've identified tens of millions in excess reserves, and once we update our financial policy (hopefully by June), we'll reallocate those funds to capital improvements and infrastructure. This ensures taxpayers see tangible benefits from their contributions. Q: What do you envision for Amarillo over the next two years, and how will you measure success? A: We've always valued faith, family, and freedom here. My goal is to keep taxes low so people can chart their own futures. Success means fully staffed public safety departments, well-maintained roads, and an economy propelled by local expertise, not heavy-handed governance. Q: Why seek re-election, and what do you hope to accomplish in your next term? A: We're nearing completion on key projects — like the WWTP overhaul — and I want to see them through. In another term, I plan to fully staff the police force, upgrade roads, refine the MUD framework, strengthen the Amarillo Economic Development Corporation's strategy, and lock in better financial policies. Ultimately, I want to deliver a solid return on the community's investment. Cole Stanley has served as Amarillo's mayor since 2023. A former local business owner, he advocates for transparent governance, careful budgeting, and a pro-growth agenda. If re-elected, Stanley says he'll continue emphasizing essential city services, all while honoring Amarillo's long-standing traditions of independence and self-reliance. This article originally appeared on Amarillo Globe-News: Amarillo mayor candidate Cole Stanley Q&A: Finishing projects, plans
