The Hobby Area Management District is lowering its rate of assessment on commercial properties.

The District board of directors approved a new service and assessment plan Nov. 15.

Starting Jan. 1, 2024, owners will be billed at the rate of 12.5 cents for every $100 of their property value set by the Harris County Appraisal District. The previous rate was 15 cents.

The new rate equals 0.125 percent of a penny for every $1 of value.

The District board voted for the reduction at a public meeting, saying it could continue to provide its robust services to the area at the lower assessment rate.

Assessments on commercial properties — which include retail and wholesale property, commercial and industrial property and apartment complexes — are the District’s sole source of income. Homeowners, apartment renters and business renters are exempt.

The District provides extra law enforcement patrols and other public safety efforts on commercial corridors, graffiti and litter removal, median beautification, promotion of businesses, economic development projects and more.