Community Development Authorities, Who Really Benefits?
I actually laughed out loud while reading this article in the 5/28/06 addition of the WAPO regarding a proposed Community Development Authority (CDA) for the Route 50 corridor in Loudoun County.
To summarize the article, a Community Development Authority is basically a relatively new tool that developers can use to pay for infrastructure improvements such as roads, schools, parks, etc.
But here’s the catch – developers really don’t pay anything at all. They issue tax-free government bonds to get the cash needed to build the infrastructure that will be needed to support the new development. In this case it’s 15,000 new homes.
So, who pays? Property owners who live within the CDA pay the bonds back. The WAPO states, “On top of their county real estate taxes, most property owners within the developments would pay an annual fee for 30 years -- as much as $1,900 for each home -- to pay off the bonds that would finance the improvements.”
Loudoun Supervisor Jim Burton sums it up best when he said, “The citizens who buy those homes will be burdened with an additional tax over and above the regular property tax…It's an unfair additional burden when other citizens and residents in the county will get to use the facilities that that tax district would fund." Right on, brother.
Greenvest, the company proposing to build the houses under the CDA says that folks opposed to growth can't have it both ways. In other words they can’t complain that developers don't pay their way -- and complain when they do. That’s not much of an argument if you ask me because the property owners are the ones who are paying.
CDA’s are only good for one entity in the equation; in this case it’s the developers. If there is any benefit to the taxpayer, I’d like to know what it is.