SIDs and LIDs

Special Improvement Districts (SIDS) and Limited Improvement Districts (LIDS). What are they..?       I get this question alot.  The answer is pretty simple.  It is the cost incurred from the the city for the various amenities and services such as water hydrants, lighting, streets and sewer plumbing. The home developer who builds on unimproved land has two choices,        1) They can pay for this up front and  include the cost into the sales price of the lot or home             2) They can decide to defer the cost to the new lot or homeowner.                                                                  If the 2nd option is chosen,...the cost then becomes an assessment from the city on the whole community. After dividing this amount among all of the properties within the community, It is  then set into annual or semi annual payments at a fixed interest rate. The Sids/Lids are transferable with the resale of the property. They can also be paid off ahead of time, but be sure to check to see if there are any prepayment penalties. The master planned community of Summerlin is know to have Sids in several of their communities            

Posted by Las Vegas Realtor - Hank Lauzon