[The Shadow]

Originally Posted by Muncle

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I'm not going to criticize or comment that your question has been addressed in a variety of ways both in other TOTV threads and published Janet Tutt comments that are available on the CDD web site. It's been drilled into me that one must be patient and polite.

So, I'm going to try to answer your questions as best I can, and I'm going to type r_ e_ a_ l___ s_ l_ o_ w_ l_ y_ just in case. The general answer is that no one knows exactly. No one knows how far the IRS is willing to take the case or whether they will attempt to include other "defendants".

So we go to suppositions: What if the IRS prevail, even though we are not sure what the final complaint will be? Firstly, the complaint is against the issuer of the tax-exempt bonds, the Village Center Community Development District. It is not only not against the individual homeowner, it is not against the numbered districts. The IRS can take nothing from you, can fine you nothing. Secondly, what can the VCCDD do if ruled against. Again, there are a plethora of solutions available to them, none overly pretty. Though I'm certainly not a financial expert, the one mentioned a couple times and seemingly most appealing would be to call the existing tax-free bonds and substitute non-tax-free bonds in their place. Not knowing the rate on the tax-frees or the going rate for bonds today, I've no idea what kind of financial hit that would entail, if any. As to the fear propagated by some that the VCCDD would somehow pass any cost on down to the homeowners, posters much more knowledgeable than I have assured us that this is strictly prohibited by law.

So, in answer to your first supposition, "if the IRS ruling stands, what is the impact on us, the residents?", no one can answer that now nor likely in the near future. The indication is that there will be minimal if any impact on homeowners.

So we come to supposition # 2, "if IRS is wrong in their interpretation, what is the impact on us." I'm a bit lost here as to why there would be any impact whatsoever. The only thing I can imagine would be if the VCCDD was so happy to have the monkey off their back that they would host a huge party at Spanish Springs or the Polo Field, ideally with Lauren Ritchie as Guest of Honor and Queen of the Festivities.



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I'm going to type r_ e_ a_ l___ s_ l_ o_ w_ l_ y_ just in case.

So we come to supposition # 3,
You did not say anything about the forfeiture of property or the Village Center Community Development District filing for bankruptcy and having to sell off property? GMC, AIG?