annual Benefit Assessment?

[movinsoon]

We just received a notice from CCD8 talking about an annual Benefit Asessment of $1627.50 and the annual Maintenance Assessment of $693.97 for 2009-2010. I know what the Maintenance is but I do not remember anything an annual Benefit Assessment. Can someone educate me please.

[villages07]

The $1,627 is the annual bond payment on your home. That is a strange name for it, though, and certainly could be confusing. This pays off the cost of the initial infrastructure for your section...roads, sidewalks, utilities, common areas, etc.

The $693 maintenance is for the maintenance of the infrastructure and common areas.

Both of these items are collected/paid for as part of your property tax bill which comes out around Nov 1.

Hmmm, I'm in CDD6 and our maintenance assessment is $500. Wonder why yours is so much higher? Are you in a designer or premier neighborhood?

[movinsoon]

I too was surprised that the Maintenance was so high. We are not in a Premier neighborhood. Our house is Designer and there are Villas and Ranches on the streets around us. I had relieved to know that the Benefit Assessment is the Bond--thought that I had missed budgeting for an annual fee

[chacam]

Maint fee in Summerhill is $255

[dillywho]

Bond and/or maint. assessments are lower north of 466. The newer the area, the higher they are. Most everything was built north prior to 2005.

[billethkid]

as a result of the IRS case and lawyers playing the language game :shrug:

btk

[villages07]

BTK...perhaps, but, the maintenance assessment/benefit is for infrastructure (bond) which is not the subject of the IRS investigation.

The IRS is only questioning the tax-free status of the recreation/amenity bonds.

I'm sure you know this, but, I just want to be sure all TOTV readers see these two things as different entities.

Infrastructure bond ... CDD assessment - paid by individual homeowner as part of their property tax bill. Bonds are considered municpal tax free bonds and are not in question by IRS.

Recreation bond.... Central districts float bonds to purchase recreation facilities from developer. We, the residents, pay off those bonds via our monthly amenity fee to the central district. These are the bonds that the IRS is questioning whether they should be tax free (and whether the purchase price of the amenity was determined fairly)

[The Gray Hog]

Wonder if the maintainance fee is based on lot size? Corner lots could
be higher? :shrug:

[billethkid]

one for the other.

btk

[golf2140]

Do they base the fee on the purchase price? Any help would be appreciated. Just trying to figure costs on new home.

[villages07]

The bond for the house and the annual CDD maintenenance fee are the same for all houses in a section. For our designer neighborhood, the section is comprised of all the homes on 3 streets and it is the same regardless if one paid $200K for a house or $500K.

Fees are higher for designer and premier neighborhoods and less for villas and ranches. And, depending on the age of the neighborhood and the overall acreage the section sits in, the bond and the annual assessment can vary quite a bit within a type of housing (designer, villa, etc).

Our 3 year old designer neighborhood had an initial bond of about $14,800 and annual assessment is $500.

Hope this helps, but, there are a number of variables at play... what type of house you are looking at, whether it is new or resale, and whether there is a lot of open space within your section.

[nanci2539]

I just received a card reading the Annual Budget and Maintenance for District 7 for the ongoing cost of landcaping, common areas, etc for my lot is $539.38It will appear on a portion of the tax bill. There is a public hearing on 9/4. Apparently it's been approved so I don't get why they are having a hearing.

So, if I'm understanding this correctly, this extra cost of $540 is in addtion to the bond and annual real estate tax that we need to pay.

Is this an annual occurance because I don't recall the agent telling us about this when we purchased our home.

[English Ivy]

Yes, it is an annual occurence and is in addition to the bond and real estate taxes.

When you sat down to purchase your home one of the first documents that was put in front of you to sign was "Estimated Settlement Costs For Sumter County" with your unit number and Village. It showed the dollar amounts for your unit for the Estimated CDD Maintenance Assessment and Estimated CDD Debt (bond) Assessment. The amounts are estimated because they are prorated at closing based on the fiscal year of Oct 1 thru Sept 30. It also mentioned the monthly amenity fee and yearly Fire Assessment fee.

If you go digging through all your paperwork I'm sure you'll find this document or something similar. The document I'm describing was used when we signed to purchase on 9/16/2008.

Its easy to forget in the excitement of purchasing.

[SarFred]

If we paid the bond off would these annual assessments cease? We are digging through the paperwork as you suggested but it's all kind of murky.

[zcaveman]

No. The annual assessment is the cost of the annual maintenance in your area for mowing, flowers, cleaning, etc. It is the annual cost of taking of your CDD district. You can attend a CDD meeting to find out all about it.

[SarFred]

Thanks, we're moving there in Oct. and will do!

[WAFRet]

Please help me out here...I have the Villages brochure with the "estimated" cost of living rundown.

It shows:

Utilities (water, elect, cable, trash, sewer, phone)

Insurance

Taxes

Contractual Amenities Fee (use of Golf, pools, tennis, etc.)

Development District Assessment (I think this the bond?)

BUT there's no mention of the "Annual Benefit Assessment."

Does everyone play this (with differing costs from one hood to the other?)

Are there any other "fees" or "assessments" that aren't mentioned in the brochure?

Thanx