Villages Kahuna |
04-21-2022 07:09 AM |
Will The Villages Development Districts Survive?
The government of The Villages is based closely on that of the way the Disney developments are financed and governed. The exception I believe is that Disney issues the bond financing to fund their developments, but retains the obligation to repay those bonds. The result is that Disney retains the authority to “govern” the areas using that form of financing.
In the case of The Villages, the obligation to service and repay the bonds used to fund infrastructure development is transferred to home buyers when they close on the purchase of their homes. Governance of The Villages is then transferred to homeowners over a ten-year period, after which the homeowners have the authority and responsibility to elect representatives to self-govern, including funding all governmental services with real estate taxes.
The question I have is whether the legislation passed yesterday will prevent the issuance of the bonds by The Villages in the first place? That is, will the Developer be required to fund the infrastructure and recreational facilities and then try to repay themselves thru much higher sales prices of new homes?
I haven’t read any analysis of the new Florida law, but it seems to me that it will change the fundamental formula which has permitted over thirty years of successful development of The Villages and rapidly speed the responsibility for providing and all the services normally provided by governmental agencies. The question that follows of course is whether real estate taxes will have to immediately put in place to provide and fund the governance of The Villages which had been provided by the Developer over the initial ten-year period following completion of various phases of the development?
I sure don’t have those answers, max out site seems to follow that the cost of infrastructure development will have to be’ baked in’ to the selling prices of new homes with the residents immediately assuming the responsibility of forming, organizing and paying for all the units of government required.
Somehow, I think, the new law also has to effect residents of The Villages by removing the decision-making currently being provided by The Villages Developer.
An old saying seems to apply… If it ain’t broke, don’t fix it.
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