Quote:
Originally Posted by Robnlaura
I don’t get it that fee is used to develop every amenity you use
roads, sewers, street lights, utilities then they charge you a fee to actually use the facilities It pays for the recreation buildings, pools and executive golf courses. So call it what you like if that makes you feel better. You are STILL paying for everything.. ps most new home builders don’t add a huge fee for the roads and stuff they build it comes out of their profits..
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HOA fee: Homeowners association fee. Periodical (monthly, annual) fee for operating and maintaining amenities and common areas. Sometimes also pays for landscape maintenance of every unit.
Amenity fee: Periodical (monthly, annual) fee for operation and maintenance of the amenities. May pay for landscape maintenance around amenity facilities but does not pay for work at common areas or individual unit.
CDD Maintenance fee: Annual fee (at least for us) that pays for maintenance of infrastructure and common areas within the CDD. Does not pay for work at individual units (cutting of my grass is all on me)
Bond: One time fee (though amortized over 30 years) to pay for the buildout of the initial infrastructure. Does not pay for any maintenance at all. I don't believe the amenity facilities (pools, golf courses) were funded from this but I could be wrong about that.
So yes and no. Yes, the builder pays for it but no, the builder does not lose money on the effort. The price of the home is increased to cover the cost of the infrastructure while still returning a profit to the builder. In the case of the Villages, prices are kept artificially low by assessing the infrastructure costs as a bond rather than an additional $40K on each home.