I live in a subdivision outside city limits or ETJ of any other city. We have private streets maintained by the HOA and have a security gate. We also have a Municipal Utility District (MUD) which provides our water and sewer services. We are considering contracting with the MUD to maintain our streets. We would lease them the streets for $1/year, then contract with them to maintain the streets, charging the residents a monthly fee. We are fairly close to the ETJ of a city of over 100,000. If they extended the ETJ to include us, could we continue our contrct with MUD without losing the right to private streets and security gate? While the MUD is a political subdivision, they would not own the streets or use any funds except those collected from the residents to maintain our streets. The development code of the nearby city says gated subdivisions are acceptable if every lot in the subdivision belongs to the HOA, and the HOA is "responsible for maintenance of the streets." I am unable to find anything in Texas statutes which touches on this area.