The outrageous cost of buying a home in a Metro Tax District in Colorado

Terrace TownHomes: No Special Tax Districts. Ever.

At Terrace TownHomes, we believe in complete transparency and responsible development.

We fund our own infrastructure—roads, sidewalks, sewers, water lines, and amenities—without passing that cost to homeowners through special taxing districts.

We operate under the laws that govern Homeowners Associations (HOAs)in Colorado and are fully compliant with the Colorado Common Interest Ownership Act (CCIOA). That means:

You know your monthly HOA fee before purchasing

There are no hidden taxes

There are no surprise costs

We have no affiliation with Metro Tax Districts, and we never will. That’s our promise.

The Outrageous Cost of Buying a Home in a Metro Tax District in Colorado

Imagine arriving at the closing table for your new home, only to discover a hidden tax that sends your property bill skyrocketing. A tax increase from $818 to $3,500 in just one year isn’t hypothetical—it’s happening right now in the Denver metro area. And it’s one of the shocking financial realities of buying a home in a Metro Tax District.

What Is a Metro Tax District?

Also called Special Taxing Districts, these entities are created by developers to recoup the cost of infrastructure development—such as roads, water, sewer, or fire protection—and to mitigate the risks involved in building out a community.

Here’s the catch: developers often form and control the boards that govern these districts. Once in control, they approve multi-million-dollar bonds, and the homeowners are the ones who repay them through property taxes.

A Clear Conflict of Interest

Many Colorado homeowners believe these Metro Tax Districts border on a scam. Under current law, developers can:

• Elect themselves to the board
• Approve bond issuances with no public oversight
• Appoint friends, family members, or employees to the board—even if they don't own property in the district

There are no legal requirements to disclose how bond funds are spent or who manages the money. Meanwhile, taxpayers have no vote, no say, and no representation.

One Homeowner’s Experience: A 1,000% Tax Increase

Gail Bell purchased a home in Green Valley Ranch with the understanding her property taxes would be about $50/month. Instead, she received a tax bill for $500/month.

"Even though people can afford to buy these houses, many of them can't afford to continue to live in them because of the taxes," Gail said. "It’s a system of taxation without representation… There doesn't appear to be any entity who actually holds these districts accountable when there are issues such as conflicts of interest."

An investigation by The Denver Post revealed:

Homeowners pay higher rates on bonds than they would if the costs had been built into the mortgage

Developers sometimes buy the bonds themselves, securing tax-free profits

Until recently, sellers weren’t even required to disclose whether a home fell within a special taxing district. Now, minimal disclosure is required—but for many buyers, it’s too little, too late.

Fighting Back Against Metro Tax Districts

Property owners across Colorado are now pushing back—running for seats on the boards in an effort to reclaim power from developers and prevent further abuse.

Ask the Right Questions

If a developer tells you they don’t have an HOA, ask how they fund the infrastructure. Specifically, ask:

“Do you have a Metro Tax District or Special Taxing District?”

If the answer is “yes,” proceed with caution. A home with no HOA might seem appealing, but you could end up paying $9,000 or more per year in additional property taxes—far beyond a typical $324/month HOA fee.

Explore Our No-Surprise Communities

We invite you to discover our energy-efficient, new construction townhomes—built with long-term value and financial peace of mind.

We’re currently building in:

Arvada

Visit one of our communities to experience firsthand the quality of our homes, the integrity of our development, and the confidence that comes from buying without the burden of special taxes.

Terrace TownHomes — The difference is in the details.