When showing houses to prospective Buyers one the most frequently asked question is, “What is an SID? The acronym stands for Sanitary and Improvement District and is defined as an alternative land development method.

When a land developer wants to build a subdivision outside of the city limits he/she finds that in order to built streets, sewers, commons grounds, etc. it is imperative to borrow the funds to do so. The developer also borrows money for short-term expenses. As the lots and homes are sold the developer recoups the money to pay back creditors.

An SID is a public body which is governed by the residents of the subdivision and is responsible for seeing that the costs of the improvements and operations are repaid by principal and interest payments. The money is initially raised by the developer by selling municipal bonds and warrants.

A planning board governs the SID and is responsible for the financial well-being of the subdivision. The board is also responsible for planning and setting the tax rate. Any resident of the subdivision may run for a two year term on the board and each resident has one vote. The board elects a chairman and a clerk. All meeting s are open to the public.

When the city annexes the subdivision then the SID ceases to exist. When buying a home it is important to know if the subdivision you’re considering has an SID. It is therefore important to have an expert in real estate to explain alternative methods such as SIDs. I am that expert and I’m looking forward to assisting you in finding the right home for you. Give me a call at 402-670-8775 or email me at Marie.Otis@cbshome.com