The Real Deal Miami

New wave of development district defaults

March 10, 2010 10:34AM

Florida community development districts are defaulting with increasing frequency. Investors’ dumping of these bonds has caused more defaults on development district bonds than on all other tax-free debt in America. The problem was exemplified in a recent high-profile sale of defaulted bonds in Tilson’s Landing, an incomplete project in Jacksonville. The builder at Tilson’s Landing was Yellow Bluff, which was a venture between Jacksonville companies and Miami-based homebuilder Lennar, although Lennar has not commented on its community development district operations. [Business Week]