Quote:
Originally Posted by justjim
The State of Florida passed CDD legislation as an incentive for economic development and to allow Developers to build without having to put huge amounts of their monies upfront for all that goes into a 55 plus community like The Villages. I think it was a super idea.
There are no free amenities---somebody has to pay for them. Would The Villages be the same without this CDD legislation? That is a good question and debatable.
Obviously, the developer has profited from all the commercial properties for which he maintains total control. As I understand the IRS issue of tax free bonds, this is where the "rub" with the IRS comes into play. I am not an attorney, but I cannot envision the residents being liable for any of the IRS issues with The Villages Developer.
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The residents will certainly never be liable for any of the IRS issues. Some earlier remarks by Lauren Ritchie notwithstanding, that has never been viewed as a risk by anyone with an understanding of the matter.
To explain a complicated matter in a few words: At least so far, the IRS issues are not directly "with the Villages Developer". Instead, the IRS issues are with the Center Districts, which issued the purportedly tax-exempt bonds and which own a big chunk of our amenities. The risk to Villagers (which may or may not ever materialize) is that the resolution of the IRS issues may impose such a huge cost on those Districts that that they are unable, financially, to continue the amenity system. If that happens, things get dicey.