Quote:
Originally Posted by Advogado
Only in the sense that we, after the sale to the CCDD, pay our amenity fees to the CCDD, instead of to the Developer. In other words, if things work as planned after the sale, everything is fine from the residents' perspective. We keep paying the same amenity fees, but they go to the CCDD instead of to the Developer.
The only problem for residents would arise if the CCDD were, for some reason (like the CCDD's overpaying the Developer for the assets-- the allegation in the class-action lawsuit), financially unable to continue to furnish the amenities at the promised level. In fact, thanks to the recovery in the class-action lawsuit, things now seem to be working out okay. Of course, an adverse outcome in the IRS investigation or other factors (e.g., a huge increase in the minimum wage) increasing costs to the CCDDs at a rate faster than the CPI cap on amenity-fee increases could change that.
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The developer has total control over the CCDD's. The CCDD boards are elected by landowner elections, the only landowner in the Districts is the Developer. Get the picture ??? One could conclude that the CCDD boards would do exactly what the Developer wanted them to do. Most of the board members are employees of the Developer. I recall that at one time one of the board members of the VCCDD was the caretaker of the buffalo herd.