The financial state of Florida�s Community Development Districts

[EdV]

Yet another reason to be glad you chose TV for your retirement home:

�According to the Distressed Debt Securities newsletter, which maintains a website just for Florida CDDs (floridacddreport.com), there are presently 168 CDD districts in Florida which are in default on over $5.1 billion in bonds. Put in a broader context, some $6.5 billion in CDD bonds have been issued since 2003 which means 77% of these are now in default. This makes the Florida CDD defaults the single biggest default event in the history of the municipal market.�

[justjim]

Yet another reason to be glad you chose TV for your retirement home:

�According to the Distressed Debt Securities newsletter, which maintains a website just for Florida CDDs (floridacddreport.com), there are presently 168 CDD districts in Florida which are in default on over $5.1 billion in bonds. Put in a broader context, some $6.5 billion in CDD bonds have been issued since 2003 which means 77% of these are now in default. This makes the Florida CDD defaults the single biggest default event in the history of the municipal market.�:o
I'll bite on this one-----who is responsible for the tab?

[EdV]

Well, initially the devloper issues the bond in the name of the CDD. The money from the sold bonds is used to build the roads, electric, sewer, and water line infrastructure. Then as houses are built and sold, resposiblity for paying off each part of the bond is assumed by the homebuyer.

But when the bottom dropped out of the market and home sales ground to a halt, the developer/CDD couldn't make the required repayments so they stopped paying and went into default.

If some sort of restructuring is not worked out, the developer declares it bankrupt and the CDD Bond investers end up taking it on the chin.

Then as an offshoot from that, those homeowners that did buy in will often find their community pools empty and rec center closed down and amenities falling apart from disrepair. In desparation, they too will often put their home into forclosure.

Aren't you glad you asked?

[justjim]

Thanks for the Information. Yes, glad that I asked. Unfortunaely, many in TV have very little knowledge about the CDD'S, some have misinformation, and many just don't care. "Sometimes the right question is, are we asking the right question." A. Lincoln