If you’ve explored newer home communities in Colorado, such as The Canyons in Castle Pines, Lyric at RidgeGate in Lone Tree, or Macanta in Castle Rock, you’ve likely come across the term “Metro District.” It’s one of the most common questions I hear from buyers looking at new construction or recently built homes: What exactly is a metro district, and how does it affect me as a homeowner?
What is a Metro District?
A Metropolitan District, or “Metro District,” is a special taxing district created by a city or county to finance and maintain public infrastructure and community amenities. In simple terms, it functions as a local government entity that helps fund the essentials needed to build a neighborhood from the ground up. These funds are used to develop roads, sidewalks, streetlights, and utilities such as water, sewer, and stormwater systems. In some communities, metro district funds also support parks, trails, open spaces, and even shared amenities like clubhouses or playgrounds.
When a developer starts building a new community, the infrastructure and utilities are expensive to construct. Instead of paying these costs upfront, the developer forms a metro district, which issues bonds to cover those expenses. Over time, homeowners in the community repay those bonds through their property taxes.
This means that if you purchase a home in a metro district, your property taxes will generally be higher than a similar home outside of one. Your annual tax bill includes both standard property taxes that fund schools, the county, and other local services, as well as the additional metro district taxes used to repay infrastructure bonds and maintain community features.
Metro districts are established to repay bonds over time, typically within 20 to 40 years. However, the actual timeline depends on factors such as property value growth, how quickly the community builds out, and how the district manages its finances.
It is the same as an HOA?
Homebuyers are often surprised to learn that a neighborhood can have both a metro district and a homeowners association, and each serves a different purpose. A metro district is funded through property taxes and handles large-scale infrastructure and long-term maintenance. An HOA, on the other hand, is funded through monthly or annual dues and manages day-to-day community operations such as design standards, landscaping, and neighborhood amenities.
What To Ask When Home Searching
If you’re considering purchasing a home in a metro district, it’s important to ask the right questions. Find out what the total mill levy is, so you can best understand the taxes for your property. Ask whether the district is still controlled by the builder or if it has transitioned to a board of elected homeowners. Also, review what services the district’s budget covers.
Community Enhancement
While metro districts can mean higher property taxes, they often help create the beautiful, well-planned neighborhoods that make the communities so special. When managed responsibly, these districts can enhance property values, maintain neighborhood aesthetics, and offer residents amenities that wouldn’t otherwise be possible.
Buying a home in a metro district isn’t necessarily a disadvantage—it simply requires awareness and understanding. Colorado’s growth depends on these districts to build strong, connected communities, and for many homeowners, the benefits outweigh the costs.
If you’re exploring homes across Douglas County or the greater Denver area and want to understand how a metro district may affect your investment, I’d be happy to guide you through it. My goal is to help you not only find the right home but also feel confident in the community you choose to call home.
