Q: Any suggestions on how to introduce a PID and convince a
neighborhood of primarily retired, even house bound homeowners, of the improvements that a
PID brings to a deteriorating neighborhood.
A. You may be surprised that a homeowner who has watched their
neighborhood deteriorate over the years may become one of your biggest supporters. It is a
good idea to host informational meetings to openly hold discussions as well as question
and answer sessions. You may in some cases form a door to door campaign in order to meet
and discuss the plan with as many owners as possible. You will be able to address most
concerns this way and build support and momentum for establishing your PID.
Q. How would you handle an apartment complex in terms of
assessing the voting requirements?
A. You would determine (1) the appraised values of the property and (2)
the owner of record on the tax roles. With regards to voting strategy, you would have to
assess your ability to obtain that owner’s vote. If you could obtain that vote he
would probably represent a significant land size, which would have greater value to your
petition than having a single vote.
Q. How do you work with absentee owners?
A. Calls, letters, e-mail or any other way you have of contacting them
to discuss the plan. You must be willing to research and "find" answers to the
many questions various owners will ask.
Q. How would a PID determine an assessment base when a parcel
of the area is taxed as agricultural and the rest is taxed as residential?
A. The assessment is still based on the property’s valuation and
the landowner would still count as only one property owner. If you can obtain the vote of
that landowner his contribution in terms of land size could be valuable. Each situation
should be reviewed on a case by case basis to determine (1) would it be better for the PID
to include this land area or (2) would it be better for the PID to draw the boundary to
exclude this area
Q. Since there could be several neighborhoods and possibly
several different developers, what happens to the developer’s liability?
A. The developer would still be held accountable to the charter they
hold with the city, however, in many cases the developer has already pulled out of the
Q Who grants the charter for a PID?
A. State law creates the ability for Cities and their City Council to
create the PID by City ordinance.
Q. Do PID's assume liability from the City? What type of
insurance should a PID carry?
A. The type of insurance a PID should carry has not been determined.
High Pointe PID is still working with insurance carriers how insurance coverage will work.
The PID does not own any of the property; it is simply designed to oversee common area
maintenance and this land is City owned land. As of right now, the City’s indemnify
the PID for liability of the public areas.
Q. Is there a minimum community size required to make a PID
A. No, but an association would want to consider the associated costs
divided by the number of owners to determine if this arrangements meets the
neighborhood’s needs and is cost effective.
Q. Once established, could a PID adjust the amount of its
A. Yes. A budget is submitted to the city council and public hearing is
held each year to set the assessment rate.
Q. What happens to money that is not used within a budget year?
A. The funds can go into a reserve fund for future projects or offset
the next years operating budget, similar to an HOA.
Q. How do you handle "double taxation"? Meaning would
I now be paying for the neighborhood maintenance through taxation and would also pay
additional tax due to the appreciation in property value due to the neighborhood
A. This question has not been an issue with the groups that Cornerstone
Association Mgmt. has worked with to date. This is certainly a possibility that could be
attributed, when a PID is formed and the appearance of the neighborhood improves.
Q. Who decides how the assessment will be spent. Such as
whether to plant trees versus seasonal color, or install new lighting versus new fence,
A. The advisory Board for each community will decide how funds are
spent. There are certain limitations on engaging contracts, some of which the City’s
will have to approve. The Board will also submit a budget and 5 year plan to the city
counsel each year that outlines the planned expenditures. To determine the Advisory Board,
the neighborhood can hold an election to select a board comprised of owners within the
Q. If a PID has city park(s), bridges, or other city maintained
areas, will the City still continue to provide maintenance and absorb the expense?
A. A PID can maintain public land. Whether or not the public land is
included in the PID would have to be established at the time the PID is zoned. Associated
expenses are included in the PID’s annual budget. Also, the City may choose to
contribute the funds it would normally spend, for example for mowing, to the PID. The main
purpose of a PID is beautification and enhancement of the neighborhood. The leadership of
the PID would have to determine if the neighborhood is better served by adding maintenance
of the noted items.
Q. Where would a PID ordinance hearing fall on the city
A. Typically within the consent agenda and/or public hearings.
Q. What is the down side of forming a PID and why are there not
more of them?
A. The down side would have to be that the PID does not have as much
control over architectural issues as a mandatory association. However, mandatory
membership is not an option for many community associations. The reason there are not more
PIDs is due to the fact that residents and City Planners are not aware of this option.
Q. Is there a plan for all neighborhoods in Plano to be
included in a PID?
Not that we are aware of. This would be a question for the City council
to address. This is a self-help program that can only be initiated by the residents of a
community themselves or at the inception of a community by a developer. A PID gives
neighborhoods a way to help themselves and is not intended to be something that a City or
Municipality can dictate to a neighborhood.