Original debt: $70 million
Since residents could not even cover interest payments, the amount of compounded accrued interest keeps adding up to: $253 million
($253 million as of the 2017 Audit – the number is now $320 million)
- Interest is still adding up on unpaid interest until 2029 (40 years).
- At the end of 40 years, the residents will “only” have to pay off over $500 million at about $1.5 million a year.
- Here is what it looks like in the 2017 Audit for this community. Followed by an example of current Service Plans written by the developers expressly “authorizing” this perpetual developer debt:
Developer holds the debt and still controls the board (as of 2017):
- Principal: $70 million
- Interest as of 2017: $253 million
- Interest on the total $323 million continues to grow at 7.99%
- Current interest: $320 million
- Total by 2029: over $500 million
2021 Service Plan from a new Metro District expressly “authorizing” developer held debt just like the one above.
The developer is an “eligible bond holder”.
