[ElDiabloJoe]

Originally Posted by golfing eagles

No developer, anywhere, ever, is going to build infrastructure "on his own dime". Usually it is included in the price of the home, here it is financed by bond offerings. Same difference, but it does make the price of the home appear to be lower. No different that the low fare airlines that then want to charge you extra for the engines or a pilot.

Another way that it is done is how new development is handled in California. At least 35 years ago, a thing called "Mello-Roos" was passed, named after the political authors.

It is essentially the same as a bond and a CDD. A type of CDD is formed, and a municipal bond is secured to fund schools, roads, sewers, etc.

It is another 1% or so (in addition to the 1.1% property tax) added as a separate line item to your property tax bill. So, if you sell, you stop paying. It cannot be paid in advance, and it is your home's share of the neighborhood's infrastructure bill. Once the municipal bond is paid off, the Mello-Roos tax ends for the homeowner. Usually about 30 years.

Very similar.