Community Authority Boards (CAB’s) Privatize Public Government (i.e. Sterling Ranch)
I have lived in Sterling Ranch for over five years – we love our home, the location is beautiful and our neighbors are wonderful. But the "skeleton in the Sterling Ranch closet" is the Community Authority Board (CAB) created to govern this community. Residents have no clout in how tax dollars are spent, no ability to put the brakes on debt issuance (especially subordinate self-dealing developer debt), no voice on covenant design and enforcement, no direct voting capacity to even select simple vendors such as our trash or landscaping service, and is subservient to a water district created, managed and run by a board of directors that largely consists of the Sterling Ranch developers. What kind of governance is this? The simple answer is an autocracy.
Years before any dirt had been moved, the developer of this community created the Sterling Ranch CAB via an intergovernmental agreement established under Title 29 of the State Statutes. A “loophole” that creates an unyielding amount of indefinite control for developers to privatize public government, control each metro district’s finances, as well as the rules and covenants of this community. This IGA does not seem to be the true intent of Title 29. Serving on one of the metro district boards (there are seven districts, along with other sub-districts in Sterling Ranch) I was able to have a front row seat to the havoc that a CAB governing structure can present to any community. Developers, via the CAB, can have complete control over taxation and spending, covenant design and enforcement and selection of service providers (some of which have private profit motive that are owned or affiliated with the developer). This can all be done without any checks or balances (or being elected) from the 2,500+ residents of this community.
Before any member(s) of this task force that had a hand in creating the Sterling Ranch CAB reads this testimony and jumps to predisposed conclusions - I believe Metro District’s do provide a valuable resource to meet growth demands in this State. They do serve a much needed purpose, and I am familiar with financing mechanisms for real estate development. However, master-servant and CAB structures deteriorate citizens’ rights and confidence in their ability to self-govern at the cost of private company profits. This community has been fed lies from its developers, and will continue to do so until this State starts to put the citizens it elected ahead of private enterprise and lobbyist interests. The proliferation of CAB governments in the State will continue to grow – much to the detriment of this State and its citizens. As members of this task force, please bring these abuses to light in order to stop this abuse.
Thank you for visiting the community engagement tool for the Metropolitan District Homeowners’ Rights Task Force.
Pursuant to HB23-1105, this project has now concluded. On behalf of the Department of Regulatory Agencies and the Division of Real Estate, we want to thank you for your interest and participation.