Quote:
Originally Posted by RRGuyNJ
The more I read about this bond nonsense, the more I see it as a deal breaker. I'm not a fan of HOA environments any way, but then add this bond to the mix and I don't see how they sell any homes at all. What am I missing? Other HOA communities don't have this set up. Yeah Yeah I know it's not technically an HOA but everyone knows it pretty much is.
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While there is a monthly amenity fee, the Villages CDDs are significantly different from an HOA.
The bond is simply a way for the Developer to keep the list price of a home lower while still collecting the cost of infrastructure. You feel good about paying $450K for the home but you end up paying that $450K plus $50K for the bond plus another $4K for Admin fees. The home is "affordable," the infrastructure gets paid for, and the Developer makes a profit both on the home and on the Admin fees.
The same costs are there in other developments, they are just rolled into the price of the home (and likely affect the total profit).
At 3,000 to 4,000 new home sales per year, the bond has not been much of a hindrance to home sales.