What is a CDA?
State enabling legislation established a process to allow the county to create special tax districts called Community Development Authority (CDA) for financing infrastructure improvements, under certain circumstances. Under this authority, the lot owners of Aspen North can agree to tax themselves to pay for road improvements, storm water management facilities and water and sewer lines for their village. Once the infrastructure is in place, the value of the property will increase significantly.
How do we create a CDA?
Two requirements must be met:
At least two-thirds of the property owners located within the special tax district are required to sign a petition requesting that the county create a
CDA and levy the tax on the property to be included in the special tax district.At least two-thirds of the assessed valuations of the real property in the special taxing district are required to sign a petition requesting the county hold public hearings
and sell bonds necessary to finance road improvements within the CDA.How do we petition for the Aspen North CDA?
Property owners will receive a petition from the Association. Sign the petition and return it to the LLA office.
I am a property owner in the village and do not support this proposal. Will I still be required to pay for the infrastructure improvements?
If two-thirds of the property owners within the tax district support the CDA, all the properties within the tax district will be taxed.
How will the special tax district tax be collected and paid?
The special tax will be included in the property owner’s county tax bill. In the Linganore CDA, property owners were given the option of making a one time single payment of the tax, which may be an option with the Aspen North CDA. If a single payment is not an option, payment will be by the means property owners normally pay their county taxes, i.e. monthly escrow mortgage payments, quarterly payments, etc. The financial obligation stays with the land, which means it passes from owner to owner until the life of the bond is paid off.
The annual and monthly costs include total construction cost, bond issuance cost, prepaid interest and other related cost that will be financed throughout a maximum of 30 years.