You may have heard that certain communities in Las Vegas have a Sid or a Lid for a home within that community. We'll try to shed some light on this in explaining the real reason why and how these have been formed. If you are buyer or seller of real estate in Las Vegas, make sure you get our free report to potentially save you thousands of dollars!
First of All, a SID stands for "Special Improvement District" and LID means "Local Improvement District". Depending where you are in Clark County (Las Vegas, Mesquite, Laughlin, Boulder City, Henderson) either one of these terms will be used even though they are both one in the same.
Why do Some Las Vegas communities have these and others do not? To answer this question, it's important to understand how they are formed and what they pay for to begin with. Basically, the SID/LID is a charge financed by the County in the form of bonds to the developer or (homeowners) of the community for the formation of the streets, curbs, lighting, gutters and driveways.
While nobody will flat out say it, from our experience in working with developers, it is a very convenient way for developers to pass on the cost of development to the County and this allows the County to collect interest from financing charges from the future home owner.
The classic example of this use is in Summerlin. Summerlin is a massive Master planned community, currently the largest in Southern Nevada. When the developers came up with the plan and where the roads were going to come in, etc...instead of paying for the roads and improvements themselves, they acquired bonds from the county and put a rate on each new home that would be built in the community. Basically, without getting too complicated and technical, the County fronted the money to the developers and the developers passed this charge on to the future homeowner. The new homeowner is assessed an amount with interest and pays this charge semi-annually.
In Development, we call the charges for roads, curbs, etc... "hard costs". If we want to build a community, then there are requirements such as building streets to the properties. Generally, the developer pays for this and passes on the charge to the new homeowner.
In a Special Improvement District, the charge is financed by the County and then passed on to the homeowner plus interest.
Regardless, whether the charge is added on to the home when the New Summerlin Home Owner buys it or if it is added in the form of a SID afterwards, the charge will be passed on to the New Home owner regardless.
However, there are some major benefits to the way the SID is set up. You'll notice a big differance in the quality of roads and maintenance within a Special Improvement District. Our opinion on this is that the roads and improvements are done by private companies hired by the developers and not overlooked by government agencies. Instead of taking six months to work on a road, it is done in 2 weeks. Very rarely within the community of Summerlin will you see road work being done that takes a year to do; unlike other areas of Las Vegas that do not fall within a Special Improvement District. (Durango between Tropicana and Warm Springs is a perfect example of this!)
How to Use Sid Balances in Negotiations for Selling or Buying a Property in Las Vegas.
Sadly, many new Las Vegas Homebuyers, Sellers and their real estate agents completely ignore the value of this. Due to this, we have prepared a Special Report available completely free of what you need to know that could save you Thousands of Dollars when you purchase a Home in a Special Improvement District. There are benefits and these will be highlighted. Please fill out the Information below and we will forward you this report. We specialize in the Master Planned Communities in Las Vegas and have a long history during buyer and seller markets in Las Vegas and how these can be the differance in what you may think is a good deal but in actually, is costing you thousands! Simply fill out the information below and we will forward this report to you!
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