Quote:
Originally Posted by Ski Bum
The main point I took away was not the HOA dues and restrictions, but that the developer wanted to charge the HOA for all assets when it turned them over. In TV, those assets are built into the price of the home and bond. Need a little more info on why the developer thought they could charge on the way out. Actually, it was the future value of the amenity fees they wanted compensated for? Obviously, they can't because they lost.
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The Villages Developer sells the rec. centers and certain other amenities such as the executive golf courses to the CDD's after the build-out of a major area is completed. The price is determined based upon an appraisal which is usually based upon the discounted value of future amenity fees. The purchase is funded by the sale of bonds which becomes an obligation of the CDD's and the within the CDD's budgets payment of "rent" to the Developer now replaced by the principal and interest payments due on the new bonds. Until the sale, the Developer owns and maintains the facilities for which the CDD's pay rent. That is why they can operate sales centers, open and close restaurants, "remodel" areas at will, etc., etc. Until the "take-over" of the facilities by the CDD's, rent for use of the facilities is paid to the developer by the CDD's. The system has worked pretty well in the past for The Villages except for the $100 million settlement awarded years ago to the CDD's north of HY 466. I think the principal contention in the award was lack of proper maintenance of the facilities before the sale. That provided those CDD's a nice "reserve fund" to help with unexpected repairs and projects and is funding a large portion of the new First Responders' recreational area.