Originally Posted by Goldwingnut

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.