Real Estate | Community Development FAQs

Delivering the Right Communities

Let us help you find answers to commonly asked questions about Forestar.

If you cannot find the answer you need, feel free to contact us.

Q. What is entitlement?


Entitlement is the value creation process required to obtain approvals and rights to develop property according to a plan.

We secure entitlements by delivering thoughtful plans and balanced solutions that meet the needs of the communities where we operate. We are committed to recognizing and responsibly delivering the greatest value from every acre by securing entitlements which provide flexible zoning, density and use permits, access to roads and utilities, annexation where appropriate and the creation of special financing districts to reimburse major infrastructure investments.

Q. How long does the entitlement process typically take?


The length of time to secure entitlement approvals is correlated with the size, uses, location and complexity of the project. The combination of a large number of acres and multiple land uses will result in increased time requirements.

Q. What is annexation?


Annexation is the process by which cities extend their municipal services, regulations, voting privileges, and taxing authority to new territory. It may be a landowner-driven or a city-driven process. Landowners often seek annexation to obtain sewer, water and/or other municipal services currently not available.

Q. How do you decide when to begin to develop entitled land?


Development is the realization of entitlement value through investment in infrastructure necessary for sale of real estate to end users. We will make investments in the development of our communities when local market conditions support the need for additional inventory and projected sales will meet or exceed our return criteria.

Q. What considerations go into creating a master-planned community?


We incorporate thoughtful designs that enhance aesthetic appeal and integrate the area's natural landscape. The master plan has to naturally fit the land – to balance what the land is giving with what we are creating. In addition, we are focused on creating a "community lifestyle" for residents, which may include amenities such as clubhouses, parks and playgrounds, pools and golf courses.

We understand that through our entitlement and development of land we are creating a future legacy. We are focused on creating communities where families want to raise their children and where people enjoy living. We want to create a "sense of place". Figuring that out is different for each market, and that is an art. That is where Forestar truly brings a vision for every acre.

Q. Why do you primarily focus on first move-up and second move-up communities?


We are primarily focused on the entitlement and development of first and second move-up housing because they are consistently the largest segments of the new home construction market.

Q. What is a Municipal Utility District (MUD) or Special Improvement District (SID)?


A Municipal Utility District (MUD) or Special Improvement District (SID) is a political subdivision created to provide water, sewage, drainage, and other services within the MUD or SID boundaries. In addition to their common functions of water and wastewater service, MUD's and SID's may be empowered to engage in conservation, irrigation, electrical generation, firefighting, solid waste collection and disposal, and recreational activities (such as parks, swimming pools, and sports courts). These MUD and SID investments are typically funded through the issuance of bonds which are repaid from ad-valorem tax payments from the district.