Stewardship / CDD difference?

Discussion in 'Main Forum - The Watercooler' started by Beth C., Mar 7, 2015.

  1. Beth C.

    Beth C. Super-Star Member

    Can someone please explain to me what A stewardship district is? I got an explanation that I did not understand when we bought in Central Park. How do we differ from the rest of LWR?
     
  2. vanessa baugh

    vanessa baugh Well-Known Member

    Beth, a simple definition would be that the developer has not turned over certain pieces of land, roads to the community.
     
  3. Gary Berns

    Gary Berns Super-Star Member

    To add to Vanessa's post - and won't for possibly decades.

    LWR Phase I is made up of resident controlled CDDs.
     
  4. Beth C.

    Beth C. Super-Star Member

    Still not sure what this means in terms of the difference with other neighborhoods such as CC. What pieces of land haven't been "turned over?" I was told Central Park would always be a stewardship district, as opposed to whatever some of the other neighborhoods are. I'm afraid you put it a little too simply for me Vanessa :)

    Gary, which is Phase I? And what do you mean by "resident controlled" CDDs? Frankly, moving here from VA, I don't really understand this CDD thing anyway.
     
  5. Gary Berns

    Gary Berns Super-Star Member

    Beth:

    Phase 1 is Summerfield, Riverwalk, Edgewater, Country Club, CC west and Greenbrook. All are south of SR70 CDDs maintain irrigation systems, esthetics and maintenance of common areas, etc. Assesments are non ad veloram, ie, Not based upon assessed value. There are, I think, approx. 6,500 residences in Phase I. Resident controlled means District supervisors are publicly elected.

    This is still the simplified version.
     
    Beth C. likes this.
  6. Jim C

    Jim C Super-Star Member

    DEFINITION OF A STEWARDSHIP DISTRICT

    The District is a local unit of special-purpose government of the State of Florida, created pursuant to Chapter 2005-338, Laws of Florida as amended (the "Act").Among the purposes for which the District was established are financing the acquisition and construction of and the maintenance and operation of the infrastructure and other public facilities necessary for development of the lands within the District. The Act authorizes the District to issue bonds for purposes, among others, of financing the cost of acquisition and construction of assessable improvements including water management and control, water supply, wastewater management, reclamation and reuse, roadway improvements, landscaping, street lights, parks and other basic infrastructure projects within and, in accordance with the provisions of the Act, without the boundaries of the District.

    HOW IT AFFECTS OUR TAXES

    The District will levy maintenance assessments on benefitted lands within the Development for operation and maintenance functions of the District, which assessments will have a statutory first lien on such lands of equal dignity with the liens for state and county taxes and any non-ad valorem special assessments, including the 2011 Assessments.
    On District lands on which there exist liens in favor of the 2011 Assessments, such liens are co-equal with liens in favor of county, city and school district taxes and other special assessments and voter-approved ad valorem taxes. All county, school and special district taxes, special assessments and voter-approved ad valorem taxes levied to pay principal of and interest on bonds, together with the 2011 Assessments to the extent same are collected using the Uniform Method (herein defined), are billed on a single tax bill and are payable at one time. If a taxpayer does not make complete payment, he or she cannot designate specific line items on his or her tax bill as deemed paid in full. Generally, a partial payment is not accepted and any partial payment is returned to the taxpayer, except in the context of an action contesting a tax assessment, as more fully described herein under "ENFORCEMENT OF ASSESSMENT COLLECTIONS" and "BOND OWNERS' RISKS."
     
  7. Bob Bronston

    Bob Bronston Founding Member

    Just to add a little, a Stewardship District is like a Community Development District in terms of their purpose and operation. However, the state recognized that there can be circumstances where much larger areas are planned for development, including large areas that would not be developed, and rather than require numerous CDDs, they allowed for one Stewardship District to be established. I think of it as an evolution of the thinking that allowed for CDDs.
     
  8. Gary Berns

    Gary Berns Super-Star Member

    They also allow developer control for a much longer period of time. CDD must be in one county. Stewardship can go across line.
     
  9. Bob Bronston

    Bob Bronston Founding Member

    It's probably a distinction without a difference but I wouldn't say it gives the developer control for a longer time (even though that is the effect). It is intended for larger projects that take more time because they are, well, larger. For me, saying it gives the developer longer control just puts an unfair spin on it.
     
  10. Emily Peterson

    Emily Peterson Well-Known Member

    I'm still not sure I understand the difference. Let me ask a different question - is there any benefit to being under a Stewardship rather than a CDD?
     
  11. Gary Berns

    Gary Berns Super-Star Member

    You can have gates that mean something.
     
  12. Bob Bronston

    Bob Bronston Founding Member

    If there is, I'm not aware of it. As I said, I think the Stewardship concept grew out of the recognition that there were limitations inherent in the CDD legislation when it came to larger scale properties and plans.
     
  13. Beth C.

    Beth C. Super-Star Member

    We are paying CDDs and are part of a stewardship district. I'm still having a bit of a hard time grasping this. Was phase I a stewardship district at one time, say, during development?

    Who are the supervisors? I don't mean names, but do you mean county supervisors? So does that mean we, who live in a SD, don't get to vote? How are our voices heard?

    And why am I paying CDDs if Central Park is part of a SD?
     
    Last edited: Mar 8, 2015
  14. Bob Bronston

    Bob Bronston Founding Member

    You are either in a SD or a CDD but not both.
     
  15. Beth C.

    Beth C. Super-Star Member

    So why am I paying CDDs?
     
  16. Bob Bronston

    Bob Bronston Founding Member

    if you are in Central Park, you do not pay CDD tax. You pay Stewardship tax. Actually, it's not a tax in the same sense as your property taxes. It is a bond payment and an operation and maintenance fee but it is paid on the tax bill under non-ad valorem. I think the confusion is that almost everyone, from the sales people to the title people, had/have a tendency to take a linguistic short cut by referring to Stewardship District as "CDDS" since those have been around for a while.
     
  17. Beth C.

    Beth C. Super-Star Member

    You are probably right about the sales people, Bob. I am almost certain that even in the printed material they referred to it as a CDD. I had never heard of it so that was the first exposure to it. They explained we could either pay the entire amount up front. Or pay it over 10 years. I'm going to see if I can find the original sales docs.
     
  18. Beth C.

    Beth C. Super-Star Member

    I stand corrected, Bob. My contract calls it a District Bonded Improvement Fee. The sales folks must have said CDD believing that would be more universally understood? But still, isn't it just the same with a different name? Gah! I'm having a hard time getting this!
     
  19. Bob Bronston

    Bob Bronston Founding Member

    For your (a homeowner) purposes, I think it is fine to think of them as the same thing with different names. I can't check my files where I am now but I think I recall that buyers of new construction in the stewardship have to pay the fee you mentioned at closing. I'm talking about the charges you pay each year on your tax bill. The bond portion can be paid off in yearly payments until the bond matures or all at once. The operation and maintenance charge will continue on since those costs continue. Each lot has its own charge (think of it as running with the dirt) and my understanding of it is that the developer has to pay the bond portion until a buyer eventually takes it but I could be wrong about that. They may be exempt. I do know, though, that the maturation date ends for everyone on the same date regardless of when the lot is purchased. That definitely "runs with the dirt".
     
    Last edited: Mar 8, 2015
  20. Beth C.

    Beth C. Super-Star Member

    From our docs: "The District Bond Improvement Fee is a one-time fee of $15,200. This fee can be paid at closing, or you may elect to pay it as an addition to your annual county property tax assessment, at a rate of $1,274.0 per year..." This is the one I thought of as a CDD.

    "The Operations and Maintenance Assessment is $297.00 per year paid annually on your tax bill...The ...assessment is determined annually by the district board of supervisors." Anyone know who's on the board?
     
  21. Bob Bronston

    Bob Bronston Founding Member

    OK, so that is the bond obligation. As far as the board goes, I found this online but I don't know if it is the best info out there. http://laws.flrules.org/2005/338 I found on page 27, section 5, a description of how the board is elected. I think it starts with the developer who owns most of the properties and begins to change as sales reach specified levels.
     
  22. Pam Schindeler

    Pam Schindeler New Member

    I recently moved to Arbor Grande. My property state statement under the Non Ad Valorem Assessments list charges for a Lakewood Ranch Stewardship CDD and also a Lakewood Ranch Stewardship I&S. Would someone explain these charges. I read through the posted threads but am a bit confused. Thank you
     
  23. midw37

    midw37 Super-Star Member

    Please check the exact language on the bill. The I&S are bond int and principle. Other is operation and maintenance.
     

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