Developers and industry representatives tell lawmakers MUDs are essential to keep housing affordable

A large panel of developers, builders and MUD advocates told the committee municipal utility districts are a primary financing tool for Texas’ growth and housing affordability.

“TEXAS has continued economic and population growth that is unrivaled... MUDs allow growth to pay for itself,” attorney Trey Larry told the committee, summarizing the panel’s case that districts let developers fund expensive water, sewer, drainage and road infrastructure upfront and be reimbursed over time.

Industry witnesses presented examples showing how MUD financing can reduce lot and home prices by tens of thousands of dollars. One engineer on the panel illustrated the mechanism: when a MUD reimburses infrastructure costs over time a developer can sell lots at lower prices; that reduction can translate into substantially lower purchase prices for homebuyers.

Associations representing water districts and builders urged the committee to protect the state’s MUD framework while working to improve director education, transparency and coordination with cities and counties. Witnesses emphasized TCEQ oversight and low default rates for TCEQ‑regulated districts as safeguards of the model.

Panelists also identified areas where state policy can help: several witnesses urged more training and career pipelines for certified water and wastewater operators, noting an impending workforce shortage in plant operators. The hearing did not include legislation or committee votes; advocates asked legislators to preserve the MUD financing tool as lawmakers consider housing policy.