View Full Version : Development districts face wave of bond defaults

08-10-2010, 10:28 AM
Development districts face wave of bond defaults
The roads are brand new. Sidewalks, too. Recently built gazebos overlook picturesque lakes. And there is green everywhere. What is missing are the people, and the homes, and, particularly, the dollars that people and homes represent.
This is the situation facing many of Florida's community development districts, CDDs for short, a favorite tool of developers during the boom to raise money for the construction of roads and other infrastructure in the grand developments they planned.

To date, Florida's CDDs have defaulted on more than $4 billion in bonds, $330 million of it in Sarasota, Manatee and Charlotte counties. The defaults throw into doubt the futures of picturesque developments in Manatee County, such as CrossCreek, and mammoth planned communities in South Sarasota County, like Sarasota National.

An estimated 73 percent of CDDs are in default, according to Richard Lehmann, the publisher of floridacddreport.com, which tracks the CDD industry. Before the shakeout ends, he expects the number to rise to 85 percent.

Municipal governments have defaulted on bonds before, but never to this extent, Lehmann said.

He called the wave of failures in Florida "the biggest single default event in the history of municipal bonds."

08-10-2010, 10:48 AM
Can hospitals also default on bonds?

08-10-2010, 03:08 PM
Can hospitals also default on bonds?

I googled --hospitals defaulting on bonds-- lots of stuff.