[Challenger]

Originally Posted by DARFAP

Bonds are for the developer to recoup costs of building amenities, planting flowers, etc. At least that's what I was told when I bought.

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Wrong

[Advogado]

Originally Posted by jebartle

NO BOND lake county!

I think that you will find that you are mistaken about that: Lake County Amortization Schedules

[Challenger]

Originally Posted by jebartle

NO BOND lake county!

Cost of infrastructure is included in house price in most of Lake

[Challenger]

Originally Posted by Advogado

The real question is, "How does the Developer get by without disclosing the amount of the bond when he advertises house prices?" Isn't this deceptive advertising?

A prospective buyer, comparing advertised prices of houses in The Villages versus other retirement communities, has no way of knowing that the Developer is understating the real price of new houses by as much $33,000 (or more when you consider the interest and "administration" fee).

I have wondered about this since moving here in 2010. I believe that it is an intentional omission by the sales force to hide the total cost of the property. I have talked to several Villages sales people who do not even clearly understand the financial implications of the Bond for the buyers. It is in fact part of the total purchase consideration for the property. Any other explanation is clearly and provably wrong. I believe that sales people could be in jeopardy for not clearly stating this in their sale pitch and written materials

[tophcfa]

Originally Posted by Advogado

The real question is, "How does the Developer get by without disclosing the amount of the bond when he advertises house prices?" Isn't this deceptive advertising?

A prospective buyer, comparing advertised prices of houses in The Villages versus other retirement communities, has no way of knowing that the Developer is understating the real price of new houses by as much $33,000 (or more when you consider the interest and "administration" fee).

100% of all new homes are sold through the captive Villages Real Estate Company, not the Multiple Listing Service. The VLS has their own policies, which obviously don't require the same level of disclosure as homes sold by licensed real estate agents through the MLS. That, along with the fact that many used homes no longer have a bond balance, are a couple of the reasons we only looked at pre-owned homes when we bought in the Villages.

[Velvet]

House buyers need to do their own research. To rely on the word of a sales person who has a vested interest in an outcome is absolutely naive. That being said, I had a very conscientious VLS agent and I wished he could have sold me the house I bought. Unfortunately, it was not to be. I am still very happy with my home though!

[Dond1959]

The bonds are for the CDD which is a common vehicle in Florida to pay for infrastructure. Not all developments use them but a lot do outside The Villages. I built in 2018 and the bond and yearly payment was clearly pointed out to me in the materials I received BEFORE signing for my lot. There was no surprise that this annual payment was going to occur. I am not sure what others have received but it appeared to be a standard form with all the costs included. All the other fees and costs were also clearly spelled out before I signed for the lot. My experience was the developer and my sales agent didn’t hide or fail to disclose anything.

Finally, the roads within the development are part of that infrastructure. So the developer paid for Fenney Way and all the roads around it in the south. The 25% tax increase will pay for maintenance of roads the county has taken over and new regional roads to prepare for future growth. I wish the county would have planned better but I am glad they are adding roads ahead of the growth.

[Velvet]

I would guess that those who are forced to pay this tax increase but do not benefit are probably not over joyed.

[Advogado]

Originally Posted by Dond1959

The bonds are for the CDD which is a common vehicle in Florida to pay for infrastructure. Not all developments use them but a lot do outside The Villages. I built in 2018 and the bond and yearly payment was clearly pointed out to me in the materials I received BEFORE signing for my lot. There was no surprise that this annual payment was going to occur. I am not sure what others have received but it appeared to be a standard form with all the costs included. All the other fees and costs were also clearly spelled out before I signed for the lot. My experience was the developer and my sales agent didn’t hide or fail to disclose anything.

Finally, the roads within the development are part of that infrastructure. So the developer paid for Fenney Way and all the roads around it in the south. The 25% tax increase will pay for maintenance of roads the county has taken over and new regional roads to prepare for future growth. I wish the county would have planned better but I am glad they are adding roads ahead of the growth.

Did the sales agent disclose the Admin Fee that you pay every year? If so, could you explain it? (I honestly don't know the basis for it.)

As to your second point, the construction of NEW roads are necessitated by the Developer's massive expansion of The Villages. They should be paid for via the Developer's impact fee, not by the taxpayers.

[justjim]

Originally Posted by Challenger

Cost of infrastructure is included in house price in most of Lake

Homes purchased in Pine Ridge and Pine Hills in Lake County had a bond. In some of the older sections (Historical section) of TV did not have a bond.

[Altavia]

Originally Posted by Advogado

As to your second point, the construction of NEW roads are necessitated by the Developer's massive expansion of The Villages. They should be paid for via the Developer's impact fee, not by the taxpayers.

The county is responsible for the roads Because all taxpayers benefit from the growth via additional tax revenue from the new homes. That's why taxes have not increased in over a decade.

No investment in the glue that connects the community means you're mortgaging the assets of you heirs via much higher taxes later

The less than a dollar a day for $300k in assessed value increase is essentially an investment to minimize future tax increases relative to freezing growth at the current level.

At the end of the day, there is no budget Santa Claus, the consumer (homeowners/tax payers) will pay no matter how you split the pie.

[Velvet]

Yes, the question is which homeowners have to pay.

I love the future argument, our econometric department always had a bit of a hard time seeing into the future as there are so many variables to consider.

[Advogado]

Originally Posted by Robbie0723

The county is responsible for the roads Because all taxpayers benefit from the growth via additional tax revenue from the new homes. That's why taxes have not increased in over a decade.

No investment in the glue that connects the community means you're mortgaging the assets of you heirs via much higher taxes later

The less than a dollar a day for $300k in assessed value increase is essentially an investment to minimize future tax increases relative to freezing growth at the current level.

At the end of the day, there is no budget Santa Claus, the consumer (homeowners/tax payers) will pay no matter how you split the pie.

Please read the definition of "impact fee" on the Sumter County website.

[Mleeja]

I chuckle every time some mentions “the developer should pay higher impact fees”. Do they really think the developer is going to eat these fees? No, they go into the price of the home. The impact fees are lower because many of the items covered by impact fees in other areas are addressed by the developer (and the home owner) through the development bond.

[egmcaninch]

We lived in Nashville for 25 years. The development costs were folded into the cost of the homes - no "bonds". However, it would seem that splitting off the development cost into a "bond" would lower real estate taxes. Correct?