What Are SID and LIDs
What Are SIDs and LIDs
When a developer builds on unimproved land, the city will install the sewer plumbing, streets, water hydrants, and lighting. This cost is passed on to the developer who can then choose to pay the city right away and add the cost of improvements to the sales price of each lot or Las Vegas home. OR the developer may elect not to pay for these improvements up front. If so, the city will place an assessment on the community as a whole. The assessment is then divided among all of the properties within the community and paid off on a semi annual basis over a pre-determined number of years.
These assessments are known as Special Improvement Districts and Limited Improvement Districts. There is the total assessment amount and the annual assessment amount. The annual amount is a portion of the total assessment that is due each year until the total amount is paid in full. The assessment runs with the property, so, if the property is sold, whatever amount is still owed is transferred to the new owner and until the assessment is paid in full. The community is basically paying off a bond/loan at a fixed interest rate for a set amount of years. However, each homeowner has the option to pay their SID/LID in full at any time (there may be a pre-payment penalty). This is very common in our valley. As a side note, you will find that our property taxes are much lower than in most other states.
HOA Fees and Master Plan Fees
The HOA fee or Homeowner’s Association fee is paid to the association company that is maintaining the affairs of the community. The community does not have to be gated for there to be an association, but if it is gated then the gated community may have a second association that maintains the area within the gates. (Some neighborhoods even have three associations, though these are not common and usually found in the most upscale custom home communities.)
Many Las Vegas Valley communities have associations, especially those developed after 1995. The Association will ensure that the maintenance and all matters pertaining to the community are addressed. In addition there may also be a Master plan community fee for the overall upkeep of the entire geographic area within which there are many sub-communities. The outer walls, community entrance, landscaping, etc. The fees can range depending on the community. Association fees are fixed and only a meeting and voting session by the board members can change those fees.
If the homeowner doesn’t pay their assessment bill , they have the right by law to Foreclose upon your home, just like an HOA or CIC. The SID or LID “runs with the land” or carries over to the next homeowner if not paid off during the original buyer’s occupancy and may be paid in full at any time.
See Abbreviations below:
SID – Special Improvement District
LID – Local Improvement District
HOA – Homeowner’s Association
CFD – Community Facilities District
To find out if a home you are buying has an assessment you can go to AMGNV.com