In Anna, the Price of a New Home Doesn't Include the Street It Sits On

In much of Anna's new construction, the most important document for a buyer is a one-page Public Improvement District notice. Under Texas law, the seller has to put it in front of you before you sign a binding contract. It names a dollar amount that the list price leaves out. In the newest district the city has approved, that amount runs from about $67,500 to just over $105,000 per lot, and it gets paid back in annual installments for roughly three decades.

Two homes in Anna with nearly the same price can therefore cost very different amounts to own each year. If you're comparing communities on sticker price alone, you're missing much of what separates them.

The form that arrives before the contract

Texas Property Code §5.014 sets the order. The seller of a property inside a PID must give the buyer a signed written notice. It identifies the district, states that the buyer will owe the assessment, explains that unpaid balances are payable in annual installments that can vary, says where to get the exact amounts, and lays out the penalties, lien, and possible foreclosure that come with nonpayment.

The notice is due before a binding purchase contract is signed. If the seller skips it, the buyer can terminate for any reason within seven days of receiving it, as long as the city or county filed the service plan before the contract was signed.

Most buyers sign this form with the rest of the early paperwork. Its figures belong in the price comparison you make while touring, well before the contract stage.

What Sherley Farms attaches to each lot

On February 24, 2026, Anna City Council adopted the Service and Assessment Plan for Improvement Area #1 of the Sherley Farms Public Improvement District and levied its assessments. The area holds 418 lots. According to the February 2026 bond offering document, the builders under contract are Scott Felder Homes doing business as Olivia Clark Homes, Perry Homes, Bloomfield Homes, Highland Homes, DRB Group, formerly Brightland Homes, Homebound, and Drees Custom Homes.

The adopted plan gives each lot size an estimated buildout value, a principal assessment, and an average annual installment:

Every row works out to the same rate. The plan expresses the installment as a tax-rate equivalent of $1.105792 per $100 of value. For comparison, the City of Anna's own tax year 2025 property tax rate was $0.525073. The PID installment alone costs more than twice the city's levy.

The offering document adds everything up. Tax year 2025 rates from the city, Collin County, Collin College, and Anna ISD total $1.995536 per $100. With the average PID installment included, the combined figure reaches $3.101328 per $100.

Thirty years at nearly the same number

The installment follows a bond repayment schedule, so your appraisal doesn't drive it. The city recalculates it each year, and the interest rate can be adjusted under the plan's terms. Installments are due October 1 and become delinquent if they're still unpaid on February 1 of the following year. The first installment was due on or about October 1, 2026, with a February 1, 2027 delinquency date. For the 45-foot lots, the plan's schedule shows a total annual installment of about $5,275 every year from the 2027 installment through at least 2054. That's more than $147,000 in installments over those 28 years on a $67,570 principal assessment.

What changes is the split inside the payment. In 2027 the 45-foot installment is about $802 of principal and $4,054 of interest. By 2054 it's about $4,253 of principal and $816 of interest. That pattern matters if you sell early. A seller in year five passes along a balance that has barely come down, and the next buyer receives a §5.014 notice showing most of the original principal still owed.

The plan also sets out how the debt behaves. If an owner misses an installment, the remaining installments don't become due all at once. They stay on their original schedule. The bonds behind the assessments are special obligations repaid from the assessments themselves. They aren't backed by the city's taxing power. The bond documents also describe a prepayment process for owners who want to pay off the balance. Each service plan spells out the method.

Same town, different rate

The Villages of Hurricane Creek, across town, also sits inside a PID. Its rates are lower, and they differ from one phase to the next. The city's 2026 Amended and Restated Service and Assessment Plan for the district is dated March 24, 2026. It serves as the district's 2026 annual update and levies a new Improvement Area #3.

Here's how three homes at similar price points compare, using the estimated buildout values each plan set when its assessment was levied:

1. Sherley Farms, 50-foot lot, $530,000 estimated value. About $5,861 a year, at a rate equivalent of $1.105792 per $100.
2. Hurricane Creek Improvement Area #2, 70-foot lot, $550,000 estimated value. About $3,602 a year, with a total outstanding assessment of $41,885 per lot, at a rate equivalent of $0.6717.
3. Hurricane Creek Improvement Area #3, 50-foot lot, $450,000 estimated value. About $3,980 a year, with $45,133 outstanding per lot, at a rate equivalent of $0.8843.

The Hurricane Creek home on the wider lot carries a higher estimated value and pays about $2,259 less each year than the Sherley Farms 50-foot home. Within Hurricane Creek itself, a 50-foot lot in Improvement Area #2 with a $425,000 estimated value pays about $2,783 a year. A 50-foot lot in the newer Improvement Area #3 pays about $3,980. So even inside one community, the improvement area a home sits in sets its annual cost.

These estimated values come from planning documents. The Hurricane Creek plan notes that each figure was set when its assessment was levied, so they aren't current sale prices. The installment amounts are the firmer part of the comparison, because they come from bond schedules that the market doesn't move.

Where the credit fits

Sherley Farms has an offset that Hurricane Creek's newer areas don't. Anna agreed to contribute a TIRZ No. 9 credit equal to 50% of the city's property tax collected on each lot's captured taxable value. The credit is applied to that lot's PID installment due the following year, up to a set maximum. The maximum annual credit ranges from $1,252.30 for a 45-foot lot to $1,948.02 for a 70-foot lot. With the full credit, the net PID rate equivalent falls to $0.843256 and the combined rate to $2.838792 per $100.

Run the 50-foot Sherley Farms home again with its maximum credit of $1,391.44 and the net installment comes to about $4,470. That's still roughly $868 a year more than the $550,000 Hurricane Creek example. The credit depends on city tax collections and was to be finalized when the bonds were issued. The gross installment is also recalculated every year, so treat both figures as estimates and confirm them on the current assessment roll. The Hurricane Creek plan applies a separate TIRZ No. 2 credit, and only in its Improvement Area #1.

Why the sticker price undercounts

The bond offering also shows what builders pay for Sherley Farms lots. The contract prices are $119,250 for a 45-foot lot, $132,500 for a 50-foot lot, $159,000 for a 60-foot lot, and $185,500 for a 70-foot lot. The exception is Bloomfield's 60-foot lots, priced at $96,000, which the document attributes to Bloomfield's partnership in the development. Most contracts also carry a 6% annual price escalator plus marketing, amenity, and farm amenity fees. At every size, the standard lot price comes to about 25% of the developer's expected home price.

The PID assessment sits on top of that. On a 50-foot lot, the builder pays $132,500 for the land, and the buyer takes on a $75,077 assessment for streets, utilities, and other public improvements. Together that's about $207,600 of land and infrastructure cost tied to a home expected to sell for $530,000, and the list price shows only part of it. The plan's budget puts $9.6 million toward streets alone.

Sherley Farms is also early in its timeline. In the February 2026 offering, the developer expected home construction in Improvement Area #1 to start in the fourth quarter of 2026 and the first homes to sell to owners in 2027. Five more improvement areas are planned on the tract, for 2,578 lots in total, and the developer expects separate assessments and bonds for each area. Expect the same question to come up with every phase release.

Ordinary tax rates are moving at the same time. Collin County adopted a 2026 rate of $0.151414 on September 14, up 1.39% from 2025, as the Murphy Monitor reported. The City of Anna's proposed FY2027 budget listed a proposed rate of $0.548282. That figure was a proposal at filing, so confirm the adopted rate with the city. Small rate changes like these move a monthly payment far less than the gap between two PID districts.

FAQ

Where can I find the assessment for a specific Anna lot?

The §5.014 notice has to tell you where to get the exact amounts. Each district's Service and Assessment Plan includes an assessment roll and buyer disclosures by lot type. In Sherley Farms, for example, the 45-foot buyer disclosure lists a principal assessment of $67,569.66.

Does the PID installment replace any regular property taxes?

No. The bond documents say city, county, college, and school district taxes are owed in addition to the PID assessments.

Does a resale home in a PID still carry the assessment?

Yes. The assessment stays with the lot and follows the schedule. The seller has to give the next buyer the same notice before a binding contract.

If you're weighing new construction in Anna, Janell Branch can put the PID schedule, the TIRZ credit, and the purchase price for each home you're considering into a single annual cost before you sign anything. Schedule a consultation and bring the communities on your list.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.