[Goldwingnut]

Originally Posted by Marathon Man

It is CDD (Community Developement District.

1. The residents of each district elect five supervisors to sit on the CDD Board of Supervisors. Each CDD has a board and meeting are held monthly. Those supervisors represent the residents. Residents do not directly control anything. What the article likely meant is this. - The board is originally made up of five developer appointed supervisors because there are no residents when the CDD is first formed. Eventually, resident elected supervisors are voted in.

2. Good question to ask when you attend a meeting.

3. Depends where you live. AAC north, LSCDD south. Budgets are available publicly.

Give this a look: https://www.districtgov.org/yourdist...inal%20CDD.pdf

Originally Posted by John41

In todays Daily Sun there was an article on the CCD structure of The Villages. I have some questions.

1. The article said after about six years the residents take over running their CCD. We have been living in CCD 6 for 14 years and as far as I know residents arent running it.

2. Why is CCD infrastructure financing using revenue bonds better than traditional bank financing?

3. Who is getting the amenity fee monthly?

Thank you

Good answers from Marathon Man.

As far as question #2 goes, these are municipal bonds being issued and normally quite large (CDD13 Phase 1 bonds were $90+ million). A bank would be reluctant to lend money of these quantities to an unknown and unproven entity (CDD 13 has only existed since June 11, 2018) with no source of revenue to back up the loan. There are lots of banking rules about lending money, remember what a pain it was just to get a mortgage. The interest rate charged would be incredibly high and unaffordable.

The more attractive financing option is to get investors. If the properties would be privately held then private investors would be sought, these investors would then have a seat at the table for making decision, decisions that would be purely profit motivated. Not something desirable for a residential community.

The public bond offering allows for investors to provide the funding without having too much say in the process of usage and repayment terms except those of the bond issuing agent.

The bonds issued by the CDDs here in The Villages are highly sought after due to the long-proven track record of our CDDs and the development. Because of this record and reputation, the bonds can be issued at very competitive rates (low interest rate) which is good for the payers of the bonds - the homeowners.