USA – TEXAS Law and Practice Contributed by: Taylor Cooksey, Philip Kinkaid, Serena Kramer and David Brooks, Cokinos | Young
4.7 Enforcement of Restrictions on Development and Designated Use Restrictions on development and designed use are enforced in Texas through a combination of local zoning ordinances, building codes and state regulations. Because of Texas’s decentral - ised approach allowing municipalities to tailor regulations to their specific needs, enforcement can vary significantly from location to location. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Any type of entity may hold real estate in Texas. This section describes the entities typically used in Texas for directly acquiring ownership of a parcel of land – ie, the “titleholder entity” . Please see 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity for a description of the entities that are typically used as investment structures for real estate acquisi - tions, and which in turn own the titleholder entity. Commercial real estate in Texas is typically acquired and held in a new, single-asset limited liability company (LLC), to protect the buyer’s existing assets from environmental or other lia - bilities of the purchased property (a new “series” of “series LLC” may also be used, but this is less common). The LLC is disregarded as a separate entity for federal tax purposes. Significantly less often, a limited partnership (with an LLC or cor - poration acting as its general partner) is used to hold title. Operating companies (as opposed to real estate investors) will sometimes acquire a new prop - erty directly in an existing entity that owns other assets.
and site development plans, including to address specific concerns expressed by the agencies or public. Public hearings are often required. 4.5 Right of Appeal Against an Authority’s Decision There is a right in Texas to appeal a relevant authority’s decision regarding an application for development permission or the carrying out of a designated use. The process depends on the type of decision, the jurisdiction and the spe - cific issue involved. Zoning decisions can be appealed to the local board of adjustment. If administrative remedies are exhausted or una - vailable, judicial relief can be sought in Texas courts. 4.6 Agreements With Local or Governmental Authorities In Texas it is possible to enter into agreements with local or governmental authorities, agencies and utility suppliers to facilitate development. These agreements help to ensure compliance with regulations, secure infrastructure sup - port and address community or environmental impacts. Examples include: • development agreements with municipalities or counties; • utility service agreements with municipalities, water districts or private utility companies; • impact agreements with municipalities or counties; • economic development agreements; • Municipal Utility District agreements; • Industrial District agreements; and • transportation agreements.
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