[Goldwingnut]

Originally Posted by Vernon Hud

Does anyone actually think the developer would actually volunteer to a tax increase if it didn't benefit the family. Why do you think they set up this Bond structure, because it helps them make it look like the homes are cheaper than what they really are. 99.9999 percent of developers buy property, they put in all the infrastructure, decide how many homes per acre, divide up the cost of the infrastructure by the amount of homes in the development, and add this cost to each home before they are put on the market. This way everyone pays the same for infrastructure, no messing around with bonds, which I believe the developer makes all the interest off these bonds, which is really high compared to other interest rates. Developer here in The Villages always wins.

Sacrifice a pawn or a rook to save the queen.

As far as the bonds are concerned, yes, they work in the developer's favor, but they also work in the homeowner's favor as well.

It's all about cash flow for a business, building without the bonds ties up lots of cash and credit line that doesn't get recovered until most of the homes are sold. With the bond the infrastructure costs are recovered as they are delivered to the CDD, greatly improving the cash flow.

How does this benefit the residents? Simple, with free cash on hand the developer is able to invest in amenities and other facilities. When you buy here there is not "over there with be the tee box for the fourth hole" promises, the course is built, the pools are built, the rec centers are built. How many communities were built that were supposed to have pools, rec centers, golf courses, etc. that never appeared because the developer ran out of money; in Florida there are lots of these. (yes, sometimes there is an ebb and flow between the homes and amenities, it happens in any project of size).

The developer doesn't issue the bonds, the CDD government issues them, the bonds are sold on the open market to investors, the investors make the profits off of the interest rate of the bond. They are not mortgages and the interest rate of a bond can't be compared to that of a mortgage.

The bonds are not a secret, they are and must be fully disclosed during the buying process. If you don't read the documents and ask questions, who's fault is that.