Sunday, January 22, 2012

Florida governor turns his attention to special taxing districts

It's difficult to tell what kind of impact, if any, the review and staff's recommendations will have on community development districts. However, Scott likely won't dismantle the districts, which by state law are designed to help developers defray the cost of infrastructure and other services. These agencies can issue bonds, dividing the cost among property owners. In other words, they're contracts between the developers and property owners.
Here we go again with local government being incorrectly equated with a contractual arrangement. It is not and moreover lacks the necessary elements of a legal contract regardless of whether the framework is a private nonprofit corporation as is the case with mandatory membership homeowner associations or a public entity such as a special district.

1 comment:

Intruder2u said...

What elements are missing?

I live in Barefoot Bay, FL (pop.10,000) which is Chapter 418 special district.It's a 4,900 home mobile home recreation district where you the home owner owns the land.

The developer set up covenants in 1969 and an HOA which never owned anything. The HOA runs nothing and acts only as a social club supporting itself on interest it earns from settlement money that never got spent on what it was intended for.

In 1984 the voters elected to create a special district.

In 1999 the recreation district bought the common property from the developer for several million dollars which is passed on to each home as a tax to pay down the bonds.

The district uses tax funds to enforce and seek amendments to the DOR's which many seem to think should have been extinguished by effect of MRTA years ago.

At times the district acts more like a Super HOA with sovereign immunity than a government agency.

Only registered voters have a say in district matters on election day yet all residents are subject to the so called private contract.

In Fraud Friendly Florida where would you turn for answers?