I just learned that the Sweetwater Creek CDD ("Palencia North) is in default. We are interested in a home there. Should we run away?

Asked by J22, Saint Augustine, FL Sat Feb 11, 2012

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Lee Bicknell, Agent, Saint Augustine, FL
Mon Feb 13, 2012
IF YOU REALLY LIKE THE HOUSE ,MAKE AN OFFER .WHAT ABOUT THE AREA DO YOU LIKE.IS IT WORTH PAYING THE CDD FEES?THE DEVELOPMENT IS UNDER A BOND. EACH LOT PAYS FOR THEIR SHARE OF THE BOND.
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J22, Home Buyer, Saint Augustine, FL
Sun Feb 12, 2012
Sorry, I will clarify. The developer has stopped building homes and has not made recent interest and other payments on the bonds.
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Bill Eckler, Agent, Venice, FL
Sun Feb 12, 2012
J22,

I'm unclear about what you mean by saying, "the CDD is in default." A CDD fee is a pre-development financial arrangement that allows developers to build without the normal burden of costs for infrastructure. These fees are passed on to the owners as an annual assessment for an agreed period of time (20-30years).

My recommendation is to approach both the county tax department and the builder(s) to try to get a handle on what this all means. It may not be time to run but it is very likely a time to get to the bottom of things. I just can't see how a CDD could be in default........I' like to hear more on this.

Good luck,
Bill
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