Talk of The Villages Florida - View Single Post - The Villages and the IRS. From Lauren Ritchie
Thread: The Villages and the IRS. From Lauren Ritchie
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Old 03-07-2009, 09:17 AM
dillywho dillywho is offline
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Question Repayment of bonds
Quote:
Originally Posted by squeek View Post
Has anyone thought about this (or am I late to the party?).

The developer sells bonds to finance infrastructure. Assume the actual cost of the infrastructure is several million dollars less than the bond issue total (which seems to be the case in the recent Sentinel article).

The obligation to repay the bond holders is transferred to the property owners through the amenity fee assessment.

What happens with the excess millions not used? Maybe this is part of the IRS's concern as well as the tax-exempt status. In any event, I am interested in learning where the flow of excess funds finally end.

Village Homeowner
I thought the bond repayment was tied to taxes and not the amenity fees. Does anyone know which way it is for sure? I know mine always shows up on my tax bill since we didn't pay it up front.