SPECIAL DISTRICTS CODE
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3801. HOUSTON DOWNTOWN MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
§ 3801.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "District" means the Houston Downtown Management
District.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.002. HOUSTON DOWNTOWN MANAGEMENT DISTRICT. A
special district known as the "Houston Downtown Management
District" is a governmental agency and political subdivision of
this state.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.003. PURPOSE; DECLARATION OF INTENT. (a) The
creation of the district is essential to accomplish the purposes of
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution, and other public purposes stated in this
chapter. By creating the district and in authorizing Harris
County, the City of Houston, and other political subdivisions to
contract with the district, the legislature has established a
program to accomplish the public purposes set out in Section 52-a,
Article III, Texas Constitution.
(b) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the downtown area of the city of Houston.
(c) This chapter and the creation of the district may not be
interpreted to relieve Harris County or the City of Houston from
providing the level of services provided as of August 28, 1995, to
the area in the district or to release the county or the city from
the obligations of each entity to provide services to that area.
The district is created to supplement and not to supplant the county
or city services provided in the area in the district.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.004. FINDINGS OF BENEFIT AND PUBLIC
PURPOSE. (a) The district is created to serve a public use and
benefit.
(b) All land and other property included in the district
will benefit from the improvements and services to be provided by
the district under powers conferred by Sections 52 and 52-a,
Article III, and Section 59, Article XVI, Texas Constitution, and
other powers granted under this chapter.
(c) The creation of the district is in the public interest
and is essential to:
(1) further the public purposes of developing and
diversifying the economy of the state;
(2) eliminate unemployment and underemployment; and
(3) develop or expand transportation and commerce.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, employees, visitors, and consumers in the
district, and of the public;
(2) provide needed funding for the downtown area of
the city of Houston to preserve, maintain, and enhance the economic
health and vitality of the area as a community and business center;
and
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic and
aesthetic beauty.
(e) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, and street art objects are parts of and necessary
components of a street and are considered to be a street or road
improvement.
(f) The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests as well as the public.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 23.04(b), Chapter
165, Acts of the 75th Legislature, Regular Session, 1997, enacting
former Section 376.004, Local Government Code, and by Section 1,
Chapter 360, Acts of the 76th Legislature, Regular Session, 1999,
as that territory may have been modified under:
(1) Subchapter J, Chapter 49, Water Code; or
(2) other law.
(b) The boundaries and field notes of the district contained
in Section 23.04(b), Chapter 165, Acts of the 75th Legislature,
Regular Session, 1997, enacting former Section 376.004, Local
Government Code, and in Section 1, Chapter 360, Acts of the 76th
Legislature, Regular Session, 1999, form a closure. A mistake in
the field notes or in copying the field notes in the legislative
process does not in any way affect:
(1) the district's organization, existence, and
validity;
(2) the district's right to issue any type of bond,
including a refunding bond, for a purpose for which the district is
created or to pay the principal of and interest on the bond;
(3) the district's right to impose and collect an
assessment or tax;
(4) the validity of the enlargement of the district
under Section 1, Chapter 360, Acts of the 76th Legislature, Regular
Session, 1999; or
(5) the legality or operation of the district or the
board.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.006. ELIGIBILITY FOR REINVESTMENT ZONES. All or
any part of the area of the district is eligible to be included in:
(1) a tax increment reinvestment zone created by the
City of Houston under Chapter 311, Tax Code; or
(2) a tax abatement reinvestment zone created by the
City of Houston under Chapter 312, Tax Code.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.007. APPLICABILITY OF OTHER LAW. Except as
otherwise provided by this chapter, Chapter 375, Local Government
Code, applies to the district.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.008. LIBERAL CONSTRUCTION OF CHAPTER. This
chapter shall be liberally construed in conformity with the
findings and purposes stated in this chapter.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
SUBCHAPTER B. DISTRICT BOARD OF DIRECTORS
§ 3801.051. BOARD OF DIRECTORS; TERMS. The district is
governed by a board of 30 directors who serve staggered terms of
four years, with seven or eight directors' terms expiring June 1 of
each year.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.052. APPOINTMENT OF DIRECTORS. (a) The mayor
and members of the governing body of the City of Houston shall
appoint directors from persons recommended by the board.
(b) A person may not be appointed to the board if the
appointment of that person would result in fewer than two-thirds of
the directors being residents of the city of Houston.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.053. EX OFFICIO DIRECTORS. (a) The following
persons serve as nonvoting ex officio directors:
(1) the directors of the parks and recreation,
planning and development, public works, and civic center
departments of the City of Houston;
(2) the chief of police of the City of Houston; and
(3) the general manager of the Metropolitan Transit
Authority of Harris County, Texas.
(b) If a department described by Subsection (a) is
consolidated, renamed, or changed, the board may appoint the
director of the consolidated, renamed, or changed department as a
nonvoting ex officio director. If a department described by
Subsection (a) is abolished, the board may appoint a representative
of another department of the City of Houston that performs duties
comparable to those performed by the abolished department.
(c) The board may appoint the presiding officer of another
nonprofit corporation actively involved in downtown activities in
the city of Houston to serve as a nonvoting ex officio director.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
SUBCHAPTER C. POWERS AND DUTIES
§ 3801.101. DISTRICT POWERS. The district has:
(1) all powers necessary to accomplish the purposes
for which the district was created;
(2) the rights, powers, privileges, authority, and
functions of a district created under Chapter 375, Local Government
Code;
(3) the powers given to a corporation under Section
4B, the Development Corporation Act of 1979 (Article 5190.6,
Vernon's Texas Civil Statutes), and the power to own, operate,
acquire, construct, lease, improve, and maintain projects, other
than a domed football stadium, described by that section; and
(4) the powers of a housing finance corporation
created under Chapter 394, Local Government Code, to provide
housing or residential development projects in the district.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.102. RELATION TO OTHER LAW. This chapter
prevails over a law to which Section 3801.101 refers that is in
conflict with or is inconsistent with this chapter.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.103. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act for the district in implementing a project or
providing a service authorized by this chapter.
(b) The nonprofit corporation:
(1) has each power of and is considered for purposes of
this chapter to be a local government corporation created under
Chapter 431, Transportation Code; and
(2) may implement any project and provide any service
authorized by this chapter.
(c) The board shall appoint the board of directors of the
nonprofit corporation. The board of directors of the nonprofit
corporation shall serve in the same manner as, for the same term as,
and on the same conditions as the board of directors of a local
government corporation created under Chapter 431, Transportation
Code.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.104. CONTRACTS; GRANTS. (a) To protect the
public interest, the district may contract with Harris County or
the City of Houston for the county or the city to provide law
enforcement services in the district for a fee.
(b) Harris County, the City of Houston, or another political
subdivision of this state, without further authorization, may
contract with the district to implement a project of the district or
assist the district in providing a service authorized under this
chapter. A contract under this subsection may:
(1) be for a period on which the parties agree;
(2) include terms on which the parties agree;
(3) be payable from taxes or any other source of
revenue that may be available for that project or service; or
(4) provide terms under which taxes or other revenue
collected at a district project or from a person using or purchasing
a commodity or service at a district project may be paid or rebated
to the district.
(c) The district may enter into a contract, lease, or other
agreement with or make or accept a grant or loan to or from any
person, including:
(1) the United States;
(2) this state or a state agency;
(3) any political subdivision of this state; and
(4) a public or private corporation, including a
nonprofit corporation created by the board under this subchapter.
(d) The district may perform all acts necessary for the full
exercise of the powers vested in the district on terms and for the
period the board determines advisable.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.105. COMPETITIVE BIDDING. The district may
enter into a contract for more than $10,000 for services,
improvements, or the purchase of property, including materials,
machinery, equipment, and supplies, only as provided by Subchapter
K, Chapter 375, Local Government Code.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.106. APPROVAL OF CERTAIN IMPROVEMENT
PROJECTS. The district must obtain the approval of the City of
Houston of the plans and specifications of any district improvement
project related to the use of land owned by the City of Houston, an
easement granted by the City of Houston, or a right-of-way of a
street, road, or highway.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
SUBCHAPTER D. FINANCIAL PROVISIONS
§ 3801.151. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS. (a) The board may not finance a service or an
improvement project under this chapter unless a written petition
requesting that service or improvement is filed with the board.
(b) The petition must be signed by:
(1) the owners of a majority of the assessed value of
real property in the district according to the most recent
certified tax appraisal roll for Harris County; or
(2) at least 50 owners of land in the district, if more
than 50 persons own property in the district according to the most
recent certified tax appraisal roll for Harris County.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.152. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of the district's money.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.153. AUTHORITY TO IMPOSE AD VALOREM TAXES,
ASSESSMENTS, AND IMPACT FEES. The district may impose an ad
valorem tax, assessment, or impact fee as provided by Chapter 375,
Local Government Code, to provide an improvement or service for a
project or activity the district may acquire, construct, improve,
or provide under this chapter.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.154. MAINTENANCE TAX. (a) If authorized at an
election held in accordance with Section 3801.158, the district may
impose an annual ad valorem tax on taxable property in the district
to:
(1) maintain and operate the district and the
improvements constructed or acquired by the district; or
(2) provide services to industrial or commercial
businesses, residents, or property owners.
(b) The board shall determine the tax rate.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.155. ASSESSMENTS; LIENS FOR
ASSESSMENTS. (a) The board by resolution may impose and collect
an assessment for any purpose authorized by this chapter.
(b) An assessment, a reassessment, or an assessment
resulting from an addition to or correction of the assessment roll
by the district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property
assessed;
(2) are superior to any other lien or claim other than
a lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) are the personal liability of and a charge against
the owners of the property even if the owners are not named in the
assessment proceeding.
(c) The lien is effective from the date of the board's
resolution imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that the
board may enforce an ad valorem tax lien against real property.
(d) The board may correct, add to, or delete assessments
from its assessment rolls after notice and hearing as provided by
Subchapter F, Chapter 375, Local Government Code.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.156. PROHIBITED EXEMPTIONS. A single-family
residential property or a residential duplex, triplex, fourplex, or
condominium may not be exempt from the imposition of a tax, an
impact fee, or an assessment if the tax, impact fee, or assessment
is imposed in accordance with this chapter.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.157. OBLIGATIONS; APPROVAL BY CITY OF
HOUSTON. (a) The district may issue bonds or other obligations
payable in whole or in part from ad valorem taxes, assessments,
impact fees, revenue, grants, or other money of the district, or any
combination of those sources of money, to pay for any authorized
purpose of the district, other than to finance a domed football
stadium.
(b) In exercising the district's borrowing power, the
district may issue a bond or other obligation in the form of a bond,
note, certificate of participation or other instrument evidencing a
proportionate interest in payments to be made by the district, or
other type of obligation.
(c) Except as provided by Subsection (d), the district must
obtain the approval of the City of Houston:
(1) for the issuance of a bond for each improvement
project; and
(2) of the plans and specifications of the improvement
project to be financed by the bond.
(d) If the district obtains the approval of the City of
Houston of a capital improvements budget for a specified period not
to exceed five years, the district may finance the capital
improvements and issue bonds specified in the budget without
further approval from the City of Houston.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.158. ELECTIONS REGARDING TAXES OR
BONDS. (a) In addition to the elections required under
Subchapter L, Chapter 375, Local Government Code, the district must
hold an election in the manner provided by that subchapter to obtain
voter approval before the district may:
(1) impose a maintenance tax; or
(2) issue a bond payable from ad valorem taxes or
assessments.
(b) The board may submit multiple purposes in a single
proposition at an election.
(c) The board may not call an election under this chapter
unless a written petition requesting an election has been filed
with the board. The petition must be signed by:
(1) the owners of a majority of the assessed value of
real property in the district according to the most recent
certified tax appraisal roll for Harris County; or
(2) at least 50 owners of land in the district, if more
than 50 persons own property in the district as determined by the
most recent certified tax appraisal roll for Harris County.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3801.159. SALES AND USE TAX PROHIBITED. The district
may not impose a sales and use tax.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
SUBCHAPTER E. DISSOLUTION
§ 3801.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING
DEBT. Despite this section and Section 375.264, Local Government
Code, the district may be dissolved as provided by Subchapter M,
Chapter 375, Local Government Code, if the district has debt. If
the district has debt when it is dissolved, the district shall
remain in existence solely for the purpose of discharging its bonds
or other obligations according to their terms.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
