February 8, 2022
How are master-planned communities financing and constructing public infrastructure? RCLCO has teamed up with Launch Development Finance Advisors to investigate and found that a significant majority of home sales within the 50 top-selling master-planned communities occurred within communities using special purpose taxing districts. In addition, Launch and RCLCO have calculated the estimated net proceeds for a sample home in the Top-50 MPCs using average prices.
The joint Launch/RCLCO study confirms that the private sector is playing roles that used to be primarily fulfilled by municipal governments with respect to constructing public infrastructure. Carter T. Froelich, Managing Principal of Launch observes that “The private sector now routinely uses public sector tools such as tax-exempt bond financing through special-purpose taxing districts including, but not limited to, community facilities districts (CA, HI, AZ), Special Improvement Districts (NV), Metropolitan Districts (CO), Public Improvement Districts (NM, TX), Municipal Utility Districts (TX) and Community Development Districts (FL) to create successful large scale development projects.”
Every year since 1994, RCLCO has conducted a national survey identifying the top-selling MPCs through a rigorous search of high-performing communities in each state. Our most recent report, The Top-Selling Master-Planned Communities of Year-End 2021, highlights the top-line sales figures of the leading MPCs.
Article and research prepared by Gregg Logan, Managing Director, and Karl Pischke, Principal.
Additional research and analytical support was provided by Eric Whinnen, Senior Associate, and Blair Wheeler, Data/Research Analyst.
Disclaimer: Reasonable efforts have been made to ensure that the data contained in this Advisory reflect accurate and timely information, and the data is believed to be reliable and comprehensive. The Advisory is based on estimates, assumptions, and other information developed by RCLCO from its independent research effort and general knowledge of the industry. This Advisory contains opinions that represent our view of reasonable expectations at this particular time, but our opinions are not offered as predictions or assurances that particular events will occur.
