Community Development Authority -- FAQ
- What is a Community Development Authority (CDA)?
- A CDA is a development tool authorized by state statute that allows a separate authority created by the locality to issue bonds to help facilitate redevelopment projects or public-private partnerships. It is a voluntary special assessment district created at the request of at least 51% of the land owners within a proposed area. CDA assumes full risk of debt service through self-assessments on properties in the district.
- What does the Residential Property Disclosure form say?
- The owner(s) makes no representations with respect to whether the property is subject to a community development authority approved by a local governing body pursuant to Article 6 (§ 15.2-5152 et seq.) of Chapter 51 of Title 15.2 and purchasers are advised to exercise whatever due diligence a particular purchaser deems necessary in accordance with terms and conditions as may be contained in the real estate purchase contract, including determining whether a copy of the resolution or ordinance has been recorded in the land records of the circuit court for the locality in which the community development authority district is located for each tax parcel included in the district pursuant to § 15.2-5157, but in any event, prior to settlement pursuant to such contract.
- Why is this information important?
- Before buying a home prospective purchasers may want to know if Community Development Authority imposes a "voluntary" special assessment or tax on the property.