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Originally Posted by tucson
I'd like to know who receives all this money we're paying TV for the bond,the state? And does it pay for the streets,landscaping on roads,around facilities,buildings etc,etc.? If so, do all other housing developments in Fl. also charge buyers for a Bond besides Sale Price,Taxes and Amenity Fees?
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See the 2nd and 3rd para of the "Bond Debt Assessment" paper above for more details on what the bond covers.
Firstly, your bond payment does not go to TV. It goes to the bond holders to repay their investment. As you know, TV is based on a Florida Statute 190 which allows creation of Community Developement Districts. Once formed, a CDD can/does issue tax-exempt bonds to pay for infrastructure, such as roads, water and sewer and storm-water management, parks and recreational facilities. The tax-free bonds carry an interest rate that is generally below non-tax-exempt market rates. To repay such bonds and its ongoing expenses, the CDD levies assessments, which are enforceable in the same manner as county taxes. I don't know who carries the bonds for TV but assume they are publicly traded.
As Sidney said, everybody developing similar projects have this infrastructure costs. On smaller developments, the builder generally just includes it in the initial price as part of overhead. The reason TV uses bonds rather than directly passing the costs along, I suspect, is one of scope. Take for example the development being done in CDD Region 8. There has already been a lot of money spent there (north of 466A, west of Bailey Trail) and there will be an awful lot more long before construction begins on the first home, likely many many millions of dollars. Without the ability to issue attractive bonds, the developer would have to front that money -- now he might be able to do that today, but there was no way he could provide the funding for earlier districts when this place was still embryonic. He had too have the bond capability or TV would never have been born. ---
sorry, didn't mean to rattle on so.
One final note --- as it says on the bottom of the sheet, aside from the bond, there is also an annual maintenance assessment that all homeowners pay. This is not to be confused with your monthly assessment.