Community Development District Infrastructure and Related Obligations

12 Months Ended

Dec. 31, 2024

Community Development District Infrastructure and Realted Obligations [Abstract]

Community Development District Bonds [Text Block]

Community Development District Infrastructure and Related Obligations

A Community Development District and/or Community Development Authority (“CDD”) is a unit of local government created under various state and/or local statutes to encourage planned community development and to allow for the construction and maintenance of long-term infrastructure through alternative financing sources, including the tax-exempt markets. A CDD is generally created through the approval of the local city or county in which the CDD is located and is controlled by a Board of Supervisors representing the landowners within the CDD. CDDs may utilize bond financing to fund construction or acquisition of certain on-site and off-site infrastructure improvements near or within these communities. CDDs are also granted the power to levy special assessments to impose ad valorem taxes, rates, fees and other charges for the use of the CDD project. An allocated share of the principal and interest on the bonds issued by the CDD is assigned to and constitutes a lien on each parcel within the community evidenced by an assessment (the “Assessment”). The owner of each such parcel is responsible for the payment of the Assessment on that parcel. If the owner of the parcel fails to pay the Assessment, the CDD may foreclose on the lien pursuant to powers conferred to the CDD under applicable state laws and/or foreclosure procedures. In connection with the development of certain of the Company’s communities, CDDs have been established and bonds have been issued to finance a portion of the related infrastructure. Following are details relating to such CDD bond obligations issued and outstanding as of December 31, 2024 and 2023:


Issue Date	Maturity Date	Interest Rate	Principal Amount as of December 31, 2024 (in thousands)		Principal Amount as of December 31, 2023 (in thousands)




12/22/2017	5/1/2048	5.13%	$	9,815	$	9,815
7/18/2019	5/1/2050	4.10%	4,705		4,705
10/29/2020	5/1/2051	3.80%	5,785		5,785
6/30/2021	5/1/2051	3.66%	6,135		6,135
10/5/2021	5/1/2052	3.59%	4,910		4,910
4/1/2022	5/1/2051	4.23%	3,750		3,750
4/1/2022	5/1/2053	4.24%	2,125		2,125
6/1/2022	5/1/2052	5.40%	5,010		5,010
6/1/2022	5/1/2053	5.40%	3,365		3,365
4/1/2024	5/1/2053	5.58%	2,590		—
Total CDD bond obligations issued and outstanding			$	48,190	$	45,600

The Company records a liability for the estimated developer obligations that are probable and estimable and user fees that are required to be paid or transferred at the time the parcel or unit is sold to an end user. The Company reduces this liability by the corresponding Assessment assumed by property purchasers and the amounts paid by the Company at the time of closing and the transfer of the property. The Company recorded a $12.8 million and $19.3 million liability related to these CDD bond obligations as of December 31, 2024 and December 31, 2023, respectively, along with the related inventory infrastructure.

M/I HOMES, INC. 10-K