United States: IRS Decision on Florida CDD: Commercial Is Out; Residential May Be In
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The IRS ruled that the Village Center CDD was not a political subdivision when the bonds were issued. The decision centers around one issue: that from the actions of the Village Center CDD and the developer, it appeared that the Village Center CDD was organized and operated in a manner intended to perpetuate private control, and to indefinitely avoid responsibility to a public electorate. In the case of the Village Center CDD, control of the entity has not been turned over to residents in the 20 years of the CDD's existence, despite the developer selling 44,000 homes in The Villages. The IRS found that the developer intentionally structured the Village Center CDD so as to ensure that control would never be turned over to anyone other than the developer's insiders. The Village Center CDD's actions included petitioning the town of Lady Lake, Florida to change the boundaries of the CDD to remove land upon which future residential development was to occur, thereby ensuring that the residential threshold requiring election of the Board of Supervisors by residents would never be reached. SNIP
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IRS Decision on Florida CDD: Commercial Is Out; Residential May Be In - Real Estate and Construction - United States
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MI, Pontiac, Waterford, Southfield, Farmington, FL.--> Ron's my name and pool's my game.
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