Quote:
Originally Posted by Bill14564
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).
In a state that allows Special Districts, Developers recoup their infrastructure costs through bonds.
At 3,000 to 4,000 new home sales per year, the bond has not been much of a hindrance to home sales.
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In Colorado (and many other states), the developer advances the costs to the district, the district floats the bond and levy's a property tax on the house. Said property tax millage can be increased or decreased in the future.
Here in The Villages, the developer advances the infrastructure costs and floats bonds - individually on each property - for recouping those costs. The bond payment is fixed and doesn't change over the life of the Bond.
The Villages bond on the house can be paid off anytime. The Colorado property tax levy will stay in place until the district pays off the bond - sometime in the future and mostly out of the control of the homeowner.