Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#31
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Most things I worry about Never happen anyway... -Tom Petty |
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#32
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The amount of the bond is negotiated between the CDD and the developer as to the expected reasonable cost of the infrastructure development. Once determined, the fees and additional costs are added to the total amount of the bond. The funds from the bond sales are held by the CDD and used to pay the developer’s invoices for infrastructure development. An interesting aside on the bond issue is what happens if the development costs are less than estimated or worse yet, higher than estimated. If the costs come in less than expected, the residuals that are held in the bond reserves fund managed by the CDD issuing the bond is kept by the CDD upon maturity. These funds would normally be transferred to the Repair and Replacement (R&R) fund of the CDD or less likely, be used to reduce the annual maintenance assessment of the CDD homeowners. If the development costs run over, then what happens? This is exactly what has happened in CDD10. The last I remember (I stepped down from the CDD10 board to accept the position of County Commissioner) from 2 years ago, the developer had invoice about $1.5 million more than the amount of the bonds in CDD10. These additional invoicings sit unpaid and will remain unpaid until the bond maturity date. As I said in the previous post, there is a reserve fund that hold a portion of the initial payments of the homeowners and the funds from early bond payoffs made by some homeowners. These funds are conservatively invested and have a modest rate of return. At maturity this reserve is liquidated to pay the final payment, if there is anything leftover the developer would receive payment of the held invoices up to the original amount of the invoice or until the funds are exhausted. If there is no residual or insufficient to pay the remaining pending invoices then the developer received nothing more and writes off the unpaid invoices. The bond rate doesn’t play a significant role in the sale of homes, the 15 and 30 year fixed rate mortgage rate however does have an indirect impact. The impact is less an impact to the individual buying the new home and more an impact to that same individual who may be selling their current home and looking for a buyer who is impacted by that rate. A significant portion (30-50% is the estimate I’ve heard thrown around) of the homes purchased in The Villages are “cash” purchases and don’t have a mortgage.
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Don Wiley GoldWingNut (a motorcycle enthusiast not a gilded fastener) Village of Hillsborough www.goldwingnut.com YouTube –YouTube.com/GoldWingnut and YouTube.com/GoldWingnutProductions Carpe diem quam minimum credula postero Society is produced by our wants, and government by wickedness; the former promotes our happiness positively by uniting our affections, the latter negatively by restraining our vices. - Thomas Paine, 1/10/1776 |
#33
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If I understand CDD's correctly, the CDD is controlled by a Board of Supervisors, who are designated by the Developer at the time of the CDD's creation? These hand-picked "Supervisors" are then responsible for determining the validity of the Developer's invoices and advancing payment from the Bond Funds? (I assume the CDD advances money to the Developer to pay his bills, based on an agreed to construction schedule, no different than a bank would do on a construction loan?) I must be missing something. The entire premise seems illogical. |
#34
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Yes, the landowners elect the Supervisors for the first 5 years as required by Florida Statue Chapter 190. Then it transfers to the qualified electorate. How foolish would it be if they put someone from the POA or other such hypocritical groups on one of the boards, they are trying to build a development and a community. It’s critical that the initial Supervisors are philosophically aligned with the goals of the Community Development District (read the words - Community Development). Does this mean that they must somehow be corrupt or negligent in their responsibilities as you try to allude to? Hardly so. The State of Florida has a great many laws and regulations regarding development, spending of public funds, oversight, and contract rights and enforcement, and a great many others that exist to ensure the public trust is not violated including the Florida Open Meetings laws (commonly referred to as the Florida Sunshine Laws). They can’t just write checks and doll out money at will. All it would take is a few unsavory actions by a few individuals to cause major problems and send things into a downward spiral. Perhaps if you look into the background of some of the landowner elected officials you will see that they are business owners, management officials, and prominent members of the community that are elected to these positions. None of whom would take actions that would risk their positions and reputations, nor would the developer want them to. Such actions would run the risk of ruining businesses and turning the work here into little more than a house of cards. But of course an uninformed opinion always assumes the worst. When I took office as the first resident elected supervisor in CDD10 I had only a smattering of knowledge of what I was getting into and was extremely skeptical of the actions of the board. I spent dozens of hours each month for the first several months studying and understanding the laws that govern the work of the boards and the rules that the district staff must work under. I also spent a lot of time looking into the backgrounds and histories of the Landowner elected members of CDD10, the SLCDD, the VCCDD, and the senior members of the District staff, as well as the ongoing issues with the IRS. I needed to know the type of people I was going to be working with and if I had just jumped into a snake pit. After assessing the quality of the people, I was comfortable with putting my name out in the public eye to be associated with all of them. I wish I could say the same of all of the elected officials I have met in the last nine years. Fortunately most of these men and women are honorable and honest individuals, most but not all. Some I have met have proven themselves to be liars, dishonest, biased, egotistical, ignorant, uninformed, and self centered, trying to pass themselves off as doing what’s best for the “residents” when in fact much of their efforts have accomplishing just the opposite and to simply get their names recognized in certain online websites and to be elevated to places of “honor” within some organizations. If you want to try to smear and spread distrust about the actions of individuals, my experience has taught me that these, in your words, hand-picked Supervisors, are in fact the wrong target.
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Don Wiley GoldWingNut (a motorcycle enthusiast not a gilded fastener) Village of Hillsborough www.goldwingnut.com YouTube –YouTube.com/GoldWingnut and YouTube.com/GoldWingnutProductions Carpe diem quam minimum credula postero Society is produced by our wants, and government by wickedness; the former promotes our happiness positively by uniting our affections, the latter negatively by restraining our vices. - Thomas Paine, 1/10/1776 |
#35
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The $40,000,000 the Developer stole, that was approved by the trustworthy supervisors, was merely an over-sight? & the $350,000,000 in tax free bonds, the IRS says were improperly issued, was just an unfortunate blip? I think I have it straight now. It all makes perfect sense. To paraphrase the late, great Johnnie Cochran, "if the glove fits, you can't acquit". Last edited by BrianL99; 12-04-2023 at 06:51 AM. |
#36
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I agree with this. Where is the Bonds for Dummies version??
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#37
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The comprehension issue here is that the word investments is used colloquially for two different points of view correctly, without proper attribution to the point of view. Bonds are a financing vehicle for an investor, a way to raise money for investment purposes. Financing is about raising money for investments with a future payout(s) for the buyers of the financing vehicle in some form. (bonds, equities, mortgages, etc.) Bonds are an investment to buyers. Bonds are a financing vehicles/processes for investors to raise money for their investments. There are multiple financing processes for investors to raise money for their investments The comprehension issue here is that the word investments is used for two different points of view, depending upon whose view point is active. Bonds are an asset for the bond holder, with a claim on the investment. Left hand side of the bond holder ledger, in this case the investors who bought the bonds from wall street broker. (not related to anyone in TV, which GoldWingnut makes his assumption mistake about my post) Bonds are a debt (liability) for the bond seller, the CDD, and shows up on the right hand side of the bond seller / CDD on which owes the interest and principal to the bond holders / buyers On the left hand side of the of the CDD ledger, there is the cash (asset) from the sale of the bonds. The CDD then uses the cash to create another asset or investment in the infrastructure of the CDD. . . That is where the confusion lies, with the word investment used correctly for both the CDD and the bond holder, which is the buyer of the bond, without mentioning that the bond is also a debt / liability / financing method to the CDD which they must repay, or they lose ownership in their villages' investments. So the CDD isn't going to lose ownership in the CDD, they will just exercise their lien on your property through their assessment for non payment. PAY YOUR BOND ASSESSMENT EVERY YEAR OR PAY IT OFF BUT DON'T ASK REALTORS FOR PERSONAL FINANCE ADVICE! damn, not living in TV and recently retired trying to get into retirement mindset is slow. . especially during the winter time in NE. . (currently here in TV visiting friends and not missing NE at all) |
#38
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If a homeowner defaults on their bond, the CDD downs pay it, the next owner of the house does. |
#39
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These are tax free municipal bonds being issued by the CDD’s. There are basically two types of municipal bonds, revenue bonds and general obligation bonds. General Obligation bonds (GO’s) are backed by the full ad valorem taxing powers of the issuing municipality. Revenue bonds are backed by a pledged specific revenue source, such as a toll road or utility charge. These bonds are technically revenue bonds issued by the CDD’s. Investors in the bonds look to the CDD’s ability to pay the bonds obligations through funds raised by a non ad valorem special tax assessment. This special tax assessment represents a first lien on property holders (homeowners bond balance) and is the sole revenue source backing the creditworthiness of the bonds from an investors standpoint. The credit worthiness of the bonds is based on the stability of the underlying special assessment tax base as well as the revenue generated from the special assessment being sized adequately to sufficiently pay all required debt service obligations in a timely fashion. |
#40
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They are indeed a loan from and liability for, the CDD's. CDD Bonds never attach to a "homeowner", they attach to land only. They are not a debt of the homeowner. Only landowners assume the obligation. A homeowner never assumes liability nor becomes a debtor. Perhaps it's only semantics, but if you're going to get into the weeds, accuracy is important. |
#41
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The most confusing term in The Villages is The Villages. The name is used to refer to the community, the developer, the district government, and several other entities, all of which are generally not related to the other. Many people don't recognize or understand that these are not the same entity.
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Don Wiley GoldWingNut (a motorcycle enthusiast not a gilded fastener) Village of Hillsborough www.goldwingnut.com YouTube –YouTube.com/GoldWingnut and YouTube.com/GoldWingnutProductions Carpe diem quam minimum credula postero Society is produced by our wants, and government by wickedness; the former promotes our happiness positively by uniting our affections, the latter negatively by restraining our vices. - Thomas Paine, 1/10/1776 |
#42
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Closed Thread |
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