[The Shadow]

Community development districts' house of cards is falling down

Not a nickel' at stake

Shall we go on? Presumably, readers are getting the idea. These "governments" called community development districts are nothing but a money-making arm of the developer. And they are no more stable than the financial security of the firm, at least until the community is sold out. If developers did it the old-fashioned way — by paying for infrastructure up front — residents wouldn't be paying twice for infrastructure and would fare better in a down market.

When community development districts were created in 1980, the logic behind them was to give developers a boost to bring growth to Florida. Today, there are 594 of these districts. So far, only half of them has sold bonds.

The usefulness of community development districts — if there really ever was anything to be gained — is over. Florida has learned that letting developers make obscene profits does, indeed, spur growth. It's the kind of growth that is built like the proverbial house of cards. And that's why it's crumbling now. SNIP…..

http://www.orlandosentinel.com/news/...5455479.column

[Lou Card]

Originally Posted by The Shadow

Community development districts' house of cards is falling down

Not a nickel' at stake

Shall we go on? Presumably, readers are getting the idea. These "governments" called community development districts are nothing but a money-making arm of the developer. And they are no more stable than the financial security of the firm, at least until the community is sold out. If developers did it the old-fashioned way — by paying for infrastructure up front — residents wouldn't be paying twice for infrastructure and would fare better in a down market.

When community development districts were created in 1980, the logic behind them was to give developers a boost to bring growth to Florida. Today, there are 594 of these districts. So far, only half of them has sold bonds.

The usefulness of community development districts — if there really ever was anything to be gained — is over. Florida has learned that letting developers make obscene profits does, indeed, spur growth. It's the kind of growth that is built like the proverbial house of cards. And that's why it's crumbling now. SNIP…..

http://www.orlandosentinel.com/news/...5455479.column

Sorry, but I must ask why you have started only 2 threads in TOTV and both are the same issue?

Do you live in the Villages?

Have you been hurt by a CDD where you live?

I understand the issue, its just that your motives are unclear to me.

[The Shadow]

Originally Posted by Lou Card

Sorry, but I must ask why you have started only 2 threads in TOTV and both are the same issue?

Do you live in the Villages?

Have you been hurt by a CDD where you live?

I understand the issue, its just that your motives are unclear to me.

Now that is odd, you had 5 posts under the topic of “HomoSexual Males in The Villages” but after I go to the trouble to provide the second half of the story to the people that were interested enough to read the first half of the story you object to this informative information. I guess we have different values as far as what is important and what is not.

[RVRoadie]

The Villages is one of the few bright spots in the entire US economy. While these articles point out developer abuses in other CDD's througout Florida, it is hardly relavent to us.

Does anybody know of any other retirement communties that are doing better in economic terms than we are here in The Villages.

[Lou Card]

Originally Posted by The Shadow

Now that is odd, you had 5 posts under the topic of “HomoSexual Males in The Villages” I think you misunderstood. Yes I posted 5 times in that String, But I was noting that you initiated the Strings about CCD's and those two strings are the only two you have ever initiated. Can you see the difference? I go to the trouble to provide the second half of the story to the people that were interested enough to read the first half of the story you object to this informative information. I do not object at all, as a matter of fact I think anything about the villages is wonderful to read in this site. I do question rather your interest is for the Villages or something more personal. I feel this way, because I also feel The Villages in a non player in this story, but the way you made the string might be misunderstood by Villagers and create unnecessary fear. I guess we have different values as far as what is important and what is not. Can I assume you do not think issues that concern Homosexual Males is worth discussion? Thats OK too, if you feel that way.

Also, it is none of my business, but I am curious if you live in The Villages? If you live here, in my opinion, it would bring more validity to your concerns for our wellbeing about the CDD issues in Florida.

[aljetmet]

I do not live here yet but am curious if the financial condition of the CDDs that are associated with TV are of public record. Any one know? Any link to view?

[Bogie Shooter]

Originally Posted by aljetmet

I do not live here yet but am curious if the financial condition of the CDDs that are associated with TV are of public record. Any one know? Any link to view?

Here is a good place to start. http://www.districtgov.org/
Click on Departments.

[memason]

Originally Posted by Lou Card

Also, it is none of my business, but I am curious if you live in The Villages? If you live here, in my opinion, it would bring more validity to your concerns for our wellbeing about the CDD issues in Florida.

I had to put on my detective hat and do a little sleuthing on this one... Here's what I found:

On 7/3/2009, in a thread title "Orlando Sentinel what-ifs for The Villages IRS fight", the Shadow wrote:

"Thank you Adogado, exactly the info I was after. As far as the POA meeting, if I lived in The Villages I would join the POA and I would be at that meeting. Until this issue is resolved my moving to TV is on hold.

Does the POA permit visitors/guest? I am an hour and a half away."

On 7/6/2009, in the same thread, the Shadow wrote:

Post Excerpt... "I have come close to buying in TV in the last 10 years several times. I have rented 4 times one time for 4 months."

Given these posts from last year, it would appear that The Shadow does not live in TV. Be that as it may, this is a public forum, open for anyone to express their opinions. As for ones motives...only the poster knows for sure

[Opulence]

"only the poster knows for sure" . . . .

Since the poster is the Shadow - and if memory serves me correctly, I believe it goes like this - "The Shadow knows!" <g>

Betty

[Russ_Boston]

The bottom line for me is that all 6 of the developments that are mentioned in the article seem to share one very major component:

NONE of them finished selling the homes that were planned. To date TV has sold every (give or take 100 or so in some form of bulding stage) single home. Yes, if the homes that were planned are not sold then of course the CDD will have trouble paying the bond.

These are not CDD's that were finished and now are having trouble. Buying in FLA can be risky but after you do your homework I think you come to the conclusion that I did: TV seems like a safe bet.

Will it be desirable forever? That might be another question. But I don't plan to live forever

Funny thing about the shadow's writing. It seems to be in the same style as Laureen Ritchie who used to post directly on this site. Hmmm!

[BobKat1]

The information and learning is good, IMO. Good information for those in the process of determining where they may want to live in retirement.

[Lou Card]

Originally Posted by Russ_Boston

The bottom line for me is that all 6 of the developments that are mentioned in the article seem to share one very major component:

NONE of them finished selling the homes that were planned. To date TV has sold every (give or take 100 or so in some form of building stage) single home. Yes, if the homes that were planned are not sold then of course the CDD will have trouble paying the bond.

These are not CDD's that were finished and now are having trouble. Buying in FLA can be risky but after you do your homework I think you come to the conclusion that I did: TV seems like a safe bet.

Will it be desirable forever? That might be another question. But I don't plan to live forever

Funny thing about the shadow's writing. It seems to be in the same style as Laureen Ritchie who used to post directly on this site. Hmmm!

Nice post Russ: Hopefully this post will remove unnecessary fear from anyone concerned about the big bad IRS.

[Russ_Boston]

Lou, IRS may be another issue but, even if the ruling is against TV, the $ magnitude of that when split among all the residents doesn't worry me much either.

[JimJoe]

Originally Posted by Russ_Boston

Lou, IRS may be another issue but, even if the ruling is against TV, the $ magnitude of that when split among all the residents doesn't worry me much either.

Russ: I do not live in TV but have looked very regularly for that last 4 years. I just retired this year. I waited because I was not retired and because of the IRS issue and because I believe the economy is still heading down and prices for the types of homes I have been following carefully have dropped gradually but steadily. I have many examples. Now that I am retired I am more motivated to buy but I am still a price shopper. I don't mind renting in the meantime.

What is the magnitude of the IRS issue? The issue seems incredibly slow in resolving. I wonder why. I think it is very hard to determine the magnitude/cost because if the IRS requires the bonds to be purchased and new taxable bonds sold I am afraid it could be very costly to buy back higher interest bonds in this market as the holders would want a premium I think, and that would be in addition to possibly interest and penalty. You have given very good information on this site in the past and I am interested in your opinion.
Thanks

[downeaster]

Originally Posted by Russ_Boston

The bottom line for me is that all 6 of the developments that are mentioned in the article seem to share one very major component:

NONE of them finished selling the homes that were planned. To date TV has sold every (give or take 100 or so in some form of bulding stage) single home. Yes, if the homes that were planned are not sold then of course the CDD will have trouble paying the bond.

These are not CDD's that were finished and now are having trouble. Buying in FLA can be risky but after you do your homework I think you come to the conclusion that I did: TV seems like a safe bet.

Will it be desirable forever? That might be another question. But I don't plan to live forever

Funny thing about the shadow's writing. It seems to be in the same style as Laureen Ritchie who used to post directly on this site. Hmmm!

Well said, Russ. They all share another important component and that is they all seem to have got in over their heads financially.

Personally, I would rather be in The Villages than in some smaller development with a large portion of homes in foreclosure. Things are bad out there whether it is a CDD or not.