CFDs finance improvements for subdivisions

Developers here and throughout Arizona and the country have relied on forming community facilities districts to finance streets, water and sewer lines, and other public improvements. The CFDs enable developers to sell homes for less than if they built infrastructure costs into the price of a home, and make it possible for municipalities to obtain public improvements. However, the track record in Prescott Valley for residential CFDs with bond financing raises questions. The original developers of two subdivisions with CFDs went out of business, and a third sold out to another developer. Homeowners in a fourth subdivision formed a CFD after their homes were built. Homeowners such as Tom Shoemaker in StoneRidge bought their homes when developers were on more solid footing. StoneRidge is planned for approximately 3,800 lots on 1,880 acres located off Stoneridge Drive south of Highway 69, according to the town's General Plan.

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