[laboutj]

Originally Posted by Goldwingnut

Yes, they can and are refinanced, there is however a minimum time the bond must be in affect before it can be refinanced. The CDDs south of 466a have not reached this point yet. This done to protect the investors. A scenario that this precludes is something like: the bond is issued at a high rate of return, this makes it very attractive and sells quickly, shortly after the bond sale the bond is refinanced and starts paying at a significantly lower rate, not the higher rate the investors purchased. This helps the bond issuer but shortchanges the investors on their return. The minimum hold time before refinancing helps protect the investors investment and return.

Almost all the bonds north of 466a have now been reissued (refinanced) at a lower rate. The Assistant District Manager, Kenny Blocker, oversees these activities and watches the markets closely. As soon as a bond is eligible for reissue and the market timing is right, he works with the bond fund managers and the CDD Supervisors to expedite the process. When the bonds are reissued you will see a reduction in your annual bond assessment in the annual county property tax bill.

Thank you for the insight into how it works. Glad it isn't up to the individual CDD boards to work on.