Relating to the creation of the Bluebonnet Hills Municipal Management District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes; granting a limited power of eminent domain.

Contracts

• Commercial Leases (NNN): Landlords must amend standard lease templates for properties within the District. "Operating Expenses" must explicitly include special district assessments and new ad valorem taxes to ensure pass-through to tenants.
• Loan Covenants: Borrowers must notify lenders of the new taxing jurisdiction. Lenders will likely require a recalculation of the Debt Service Coverage Ratio (DSCR) to account for the new tax burden.
• Vendor Agreements: Service providers (security, construction) contracting with the District must comply with Texas Government Code Chapter 791 (Interlocal Cooperation Act) and public bidding requirements.

Hiring/Training

• Accounts Payable: Staff must be trained to flag invoices from "Bluebonnet Hills MMD No. 1." These are not optional HOA fees; they are government levies with foreclosure authority.
• Sales Teams: Real estate brokers must be trained on the specific boundaries of the District to ensure accurate representations to potential buyers regarding future tax liabilities.

Reporting & Record-Keeping

• Seller Disclosures: Sellers of commercial or residential property within the District are legally required to update disclosure forms under the Texas Water Code. Failure to disclose the District's existence allows the buyer to terminate the contract at closing.
• Lien Management: Legal teams must track infrastructure assessments. Upon payment, you must secure and record a specific lien release from the District, as these liens do not automatically extinguish like standard property taxes.

Fees & Costs

• New Ad Valorem Tax: A new property tax rate will be set by the Board.
• Infrastructure Assessments: Variable costs based on "benefit" to the property (e.g., road frontage or square footage).
• Foreclosure Penalties: Failure to pay results in a penalty including the total assessment value, interest, collection expenses, and attorney's fees.