[l2ridehd]

I read a lot of this information. Seems the risk is if these bonds are not tax exempt, but the interest is subject to IRS tax, then the rate which the CDD is able to sell these bonds goes up. Instead of a 4 to 5 % interest rate it goes up to 6 to 8% rate. That would increase your annual bond payment because your paying a higher interest rate. As to what happens to the past interest collected as tax exempt someone will pay higher taxes then they thought for a lower rate of return received. I am sure lawyers will be very involved with that decision and would somehow try to make that come back to the CDD which sold it as supposedly tax free interest which now is not. Then the question becomes would that get passed back to the homeowner. If it does your payment goes up for the bond portion of your annual payment. Probably not a huge amount to all of us, but an amount to pay the 2% delta that usually becomes a premium for tax free vs taxable. How much gets charged retro active is up to the lawyers and the IRS.

So is there homeowner risk? I think the answer is yes. Is it substantial? I don't think so. Probably worst case would be $700 to $800 per homeowner paid over time by the time you include lawyers, IRS penalties and interest.