Many people are familiar with metro districts but aren’t always aware of how they’re unique. Metro districts are increasing in popularity and are becoming easier to find in areas like Northern Colorado. There are a few different facts to learn to gain more insight into metro districts and what sets them apart.
What is a Metro District
You may be wondering, “What is a metro district?” Metro districts are considered to be special taxing districts that are financed by investors as a new subdivision is built. It often involves constructing storm drainage, streets, and electrical and gas operations. This type of district can assess different fees and charge taxes for the services that are offered.
The districts are formed after a service plan is created by county commissioners or the city council. Depending on the city, there may be specific policies that influence if districts can be created.
How Metro Districts are Governed
Metro districts with a board of districts that are elected. The first electors that are typically put in place include the developer’s designees, but this is only temporary until the new directors are elected every few years.
The market demand influences the development that occurs, which must follow the regulations that are currently in place.
HOAs vs. Metro Districts
Many people make the mistake of assuming that they don’t have to pay HOA fees when they’re in a metro district. You may still be required to pay additional assessment fees, record change fees, and status letter fees. It’s important to research the cost of the HOA fees and look into how much they may increase in the future to ensure you plan accordingly for the costs.
How to Determine if You Can Benefit From a Metro District
When you’re considering living in a metro district, it’s important to factor in the overall value of the property and neighborhood. Consider what the location offers and if it can provide you with a good social life or if it’s in a good school district. Many buyers consider it to be worth it to live in a metro district when they have the chance to live in a desirable area, especially if additional HOA fees.
Understanding what a metro district is can allow you to understand the advantages that it offers. When you’re buying a property in a new area, you can determine if it’s worth living in a metro district and if it can contribute to your quality of life in the area of new development.
