[villages07]

From all that I have read, the issue is with the recreational bonds issued by the two central districts to pay for the amenity facilities purchased from the developer. The "new development", i.e. that IRS is looking at another $400M in bonds issued by the special districts (not to be confused with the numbered residential CDDs) would then appear to be more of the same recreational bonds.

We have to remind ourselves that the IRS issue is with the recreational amenity bonds and NOT the infrastructure bond associated with the purchase/construction of a home.

It is certainly something to monitor for all of us already here and those researching a purchase in the Villages. Knowing what I know now, it would not stop me from buying a home here. Perhaps some good will come of it.... i.e. the negotiated sales price of amenities to the central districts will be based on more logical valuations rather than future revenue streams and will indeed be "arms length" transactions. Whether these bonds should be tax free munis or not is in the hands of the experts. I'm sure a case can be made either way. And, it's not just The Villages that has been doing this...many other CDD communities in Florida.

Stay tuned....