Community development districts' house of cards is falling down
Not a nickel' at stake
Shall we go on? Presumably, readers are getting the idea. These "governments" called community development districts are nothing but a money-making arm of the developer. And they are no more stable than the financial security of the firm, at least until the community is sold out. If developers did it the old-fashioned way — by paying for infrastructure up front — residents wouldn't be paying twice for infrastructure and would fare better in a down market.
When community development districts were created in 1980, the logic behind them was to give developers a boost to bring growth to Florida. Today, there are 594 of these districts. So far, only half of them has sold bonds.
The usefulness of community development districts — if there really ever was anything to be gained — is over. Florida has learned that letting developers make obscene profits does, indeed, spur growth. It's the kind of growth that is built like the proverbial house of cards. And that's why it's crumbling now. SNIP…..
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