Homeowner’s assumption of bond debt for facilities

[Mr.Kris]

Does anyone know the cost of a home in TV as a result of the VCCDD current/future purchase of rec facilities through bond issuance?

I’m trying to figure what the actual cost of a TV home will be.

I understand that the cost factors are the sales price, plus the infrastructure bond, plus the bonds to pay for the rec facilities. But I don’t have a good handle on the bonds to pay for all the rec facilities (current and future bond purchases) that the developer will sell to the VCCDD.

I understand that the rec facility purchase is a regressive cost to the homeowner since, as I’ve been told in prior postings, that all homeowners pay the same assessment fee. Consequently, it looks like it would be smarter, for example, to buy a designer home than a court yard villa because a homeowner would be assuming less debt proportionally on a designer than a cyv.

Also what, if any, are the “tangible” debt mitigation factors?

Thanks for your help. I need to be informed from the people in the know in order to make a smart purchase.

[villages07]

The short answer is that the purchase price of a home is not impacted by the recreation bonds.

The monthly amenity fee covers both the bond debt for purchase of amenities As well as the ongoing maintenance and operation of the amenities. Once you purchase your home, your amenity fee increases are capped to inflation rates.

Now, that doesn't prevent the VCCDD from establishing a much higher base amenity rate for new purchasers in the future should there be a big shortfall due to IRS or other unforeseen factors.