Community development in financial crisis

[The Shadow]

Community development districts in Lake and across Florida in financial crisis
First of two parts.
Across Florida, retirees are watching their communities crumble and their carefree lifestyles vanish as they become saddled with bonds and other debts bequeathed to them by dying developers. SNIP........

On Wednesday, we'll take a look at the six failing districts in Lake County.

http://www.orlandosentinel.com/news/local/lake/os-lk-lauren-ritchie-bond-defaults-0820100822,0,5258868.column

[Lou Card]

I have been seeing this trash come out of the Orlando Sentinel for 7 years now. I have not seen anything said come to be true yet. I would take any article in that news rag with a large grain of salt and move on.

[The Shadow]

I have been seeing this trash come out of the Orlando Sentinel for 7 years now. I have not seen anything said come to be true yet. I would take any article in that news rag with a large grain of salt and move on.

Check this one out “Tern Bay Country Club Resort” near the West Coast, the Gulf side of Florida, north of Fort Myers, south of Port Charlotte.

Fast-forward two years, to 2007. More than $33 million in development costs later, Lennar cuts loose from the project. Developer Priority Developers walks as well, apparently forgetting to tell the golf course lawn mower service to stop cutting the grass. The CDD starts missing its payment obligations on operations and management, and the project tailspins into default. Said golf course lawn mower service, Hawkins Environmental, Inc., winds up at an advertised foreclosure sale on June 29, 2007, and walks away with title to the entire tract for $100. SNIP….

http://www.housingcrisis.com/financial-crisis/ground-repairfloridas-cdd-comeuppance/

[Talk Host]

I have been seeing this trash come out of the Orlando Sentinel for 7 years now. I have not seen anything said come to be true yet. I would take any article in that news rag with a large grain of salt and move on.

I guess you believe the writer fabricated the information.

[Lou Card]

I guess you believe the writer fabricated the information.


I just re read the article. Sorry, I thought it was about the Villages. I do feel for other communities that are having these issues. I jumped the gun thinking it was talking about the Villages.

[spk7951]

While I do not hold the Orlando Sentinel in high regard the problems facing Arlington Ridge are very real and serious. I have been following their problems lately as we had considered it three years ago but now things have gone bad for those that live there.

[graciegirl]

Things have gone bad for almost everybody in the U.S. financially. I don't think anyone got through the last few years without losing money. I think smaller developments are surely at risk. I don't worry about us so much, because we continue to grow, and hopefully our population is largely people who are careful with their money.

I personally do not like Lauren Ritchie's style of writing. At one time she was asked if she had ever been to The Villages and I think she said "No". Can anyone remember that and help me here? She had written quite a bit about us but never visited, as I remember it.

I am not crazy about The Orlando Sentinel. Period.

Just my opinion. I may be wrong. I am not a heavyweight English Major.

[Russ_Boston]

I guess the question we would need to ask ourselves would be "Should everyone not buy into ANY retirement community that was run with CDDs"?

To answer that I guess you'd have to look at results. TV has been run in that manner since 199* (not sure exactly when CDD's were established). In that time have any of the districts, including those that have been turned over by the developer, been in financial trouble? I think the answer is no. So it seems that TV has survived at least the first few years of this economic turmoil. And it appears that perhaps we've done the CDD concept a little better than other developments? Perhaps!

[Russ_Boston]

I guess you believe the writer fabricated the information.

No but remember the old saying about "lies, damned lies and statistics"!

[spk7951]

I guess the question we would need to ask ourselves would be "Should everyone not buy into ANY retirement community that was run with CDDs"?

To answer that I guess you'd have to look at results. TV has been run in that manner since 199* (not sure exactly when CDD's were established). In that time have any of the districts, including those that have been turned over by the developer, been in financial trouble? I think the answer is no. So it seems that TV has survived at least the first few years of this economic turmoil. And it appears that perhaps we've done the CDD concept a little better than other developments? Perhaps!

But would anyone be safer in a non CDD community? Case in point: Kings Ridge in Clermont. The developer completed the community and then sold the rights to the amenities to a private party who then promptly raised the prices by almost 2x. Problem was that the covenants supposedly allowed for the homeowners to have the opportunity to take over control of the amenities before an outside concern could bid for them.
I agree that the CDD concept might work a little better here but in our visits to much smaller communities we were very concerned about what happened there after build-out then we were with TV.

[Russ_Boston]

I do think the state (and deep pockets) of the developer are a major concern. I'll bet that many of the other bankrupt developments relied heavily on developer influx of cash. Here it is done right, meaning that they build out all the amenities prior to construction of homes in each development unit. Then the CDD is turned over and the monthly fees are used and budgets are prepared.

[cynkr67]

We bought a pre-owned in April and plan to spend the majority of the year at TV. Since then, though, I've read alot about the problems with the tax-free bonds and the IRS. From what I've read this applies to the recreational and common areas funded by our amenity fees. Though we are very excited about living in TV, I'm not sure we would have purchased had we been aware of this controversy. The last news I've been able to find on this is from July of last year. Anybody know what the status is currently?? Thanks!!

[Russ_Boston]

That's the current state.

I personally don't think you have much to worry about. Enjoy!

[golfnut]

You pay your money and take your choice, I personally don't see any other communities in central FLA that hold a candle to TV, in fact I can name many that have gone under in the last few years while TV continues to flourish, jmho.................gn

[JimJoe]

Does anyone know any of the residents of those CCDs that are in trouble? How much trouble are they in and how did it happen? Do they think it can happen in TV?

[Bogie Shooter]

Does anyone know any of the residents of those CCDs that are in trouble? How much trouble are they in and how did it happen? Do they think it can happen in TV?
How would the residents of "those" CCD have any idea about the status of TV?
If you want to know how those CCD got into trouble I suggest you Google the name of the community.

[JimJoe]

How would the residents of "those" CCD have any idea about the status of TV?
If you want to know how those CCD got into trouble I suggest you Google the name of the community.

If I was in their shoes, I would be looking into every angle to figure out what happened and why it happened and if TV is immune from the problem, I would be telling my lawyer, our CCD should have done it the TV way and that is why so and so is responsible.... go get em tiger.

Do you have a problem with me asking if others have heard?

[kentucky blue]

We bought a pre-owned in April and plan to spend the majority of the year at TV. Since then, though, I've read alot about the problems with the tax-free bonds and the IRS. From what I've read this applies to the recreational and common areas funded by our amenity fees. Though we are very excited about living in TV, I'm not sure we would have purchased had we been aware of this controversy.

I finally had to stop worrying about TV future, and move on with my life ."Today is the tomorrow we worried about yesterday."And as Mr. Samuel Clemens said"I have known a great many troubles,but most of them never happened."Soooooooooooo i'm following my credo of" if your not living on the edge,your taking up too much room," and moving into the village of Frank McCloud and Nora Temple.

[elevatorman]

If you look at the map on this site you will see that none of the established Village CDD's are on the "Watch List". The one area that is on the list and is part of TV is the area where the lots have yet to be sold. I would think once the lots sell the watch list will go away. You must subscribe to the site to get more info. But the map does show where the problem areas are.

http://floridacddreport.com/index.cfm

[mulligan]

If you look at the website "CYBER CITIZENS FOR JUSTICE' you can see quite a few news stories about communities in trouble. The conclusion I have drawn is that usually some sort of skuldugery on the part of the developer is involved. The Morse family seems to have a better reputation than most of them, and they live in TV !!!!!

[aljetmet]

Do the TV CDDs have available on public record their financial statements?
Woud like to know the amount of bonds issued compared to the amount owed to it by the home owners. Seems to me if the debits.what the home owners owe to the CDD is hihiher than the credits the amount it has borrowed ( with tax free bonds) The CDD is financially sound.

[Lou Card]

So how about a bottom line here. Should we all be looking for a cardboard box to live in or will this thing work itself out?

[graciegirl]

If you look at the website "CYBER CITIZENS FOR JUSTICE' you can see quite a few news stories about communities in trouble. The conclusion I have drawn is that usually some sort of skuldugery on the part of the developer is involved. The Morse family seems to have a better reputation than most of them, and they live in TV !!!!!

They do live in TV, under a vale of secrecy. I ponder over maps of huge wide open areas in the middle of the homes north of 466, adjacent to the Polo Fields and extending over to the back of a Premier village that if you look over the fence you can see an observation tower for their exercise field for their horses.

It is a very large area and I would LOVE to know what their homes look like. I know that George Bush has personally visited them. As far as I know Mr. Obama has not been invited.

Nor have I.

Hope springs eternal in my heart that someday I will get a note that says "Please drop by".

:a040::a040:

OOOOPs. Here comes Tony. Topicop

[JimJoe]

They do live in TV, under a vale of secrecy. I ponder over maps of huge wide open areas in the middle of the homes north of 466, adjacent to the Polo Fields and extending over to the back of a Premier village that if you look over the fence you can see an observation tower for their exercise field for their horses.

It is a very large area and I would LOVE to know what their homes look like. I know that George Bush has personally visited them. As far as I know Mr. Obama has not been invited.

Nor have I.

Hope springs eternal in my heart that someday I will get a note that says "Please drop by".

:a040::a040:

OOOOPs. Here comes Tony. Topicop

Gracie.. google earth the villages and you will get old spying on everyone!!

[JimJoe]

So how about a bottom line here. Should we all be looking for a cardboard box to live in or will this thing work itself out?

Watch out for the fireants, gaters, and scorpions.

[EdV]

They do live in TV,.....and I would LOVE to know what their homes look like.

GG,

Although it’s unlikely that either of us will be visiting the Morse home(s) any time soon, we can still obtain lots of interesting public record info on their properties. Here’s a link to the Sumter County Property Appraisers website:

http://sumterpa.com/GIS/Search_F.asp?GIS

Just select the ‘GIS Map’ option in the left side menu. Then click the ‘Zoom Window’ option from the top tool bar and use your mouse to zoom in on your target property. Click the ‘Identify Property’ button from the tool bar and click on the parcel of interest. You can see what it’s appraised at and who owns it, among other things.

Enjoy

[Pturner]

Community development districts in Lake and across Florida in financial crisis
First of two parts.
Across Florida, retirees are watching their communities crumble and their carefree lifestyles vanish as they become saddled with bonds and other debts bequeathed to them by dying developers. SNIP........

On Wednesday, we'll take a look at the six failing districts in Lake County.

http://www.orlandosentinel.com/news/local/lake/os-lk-lauren-ritchie-bond-defaults-0820100822,0,5258868.column

It is also true that the housing market in general is in financial crisis. How are CDD-communities doing relative to traditionally financed residential/ mixed-use developments?