What Does Special Improvement District ("SID") Mean In The Real Estate Industry?

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Through the “Consolidated Local Improvement Law” (Chapter 271 of the Nevada Revised Statutes), Local Governments (i.e., Counties, Cities, Unincorporated Towns, General Improvement Districts) are allowed to form Special Districts (“SID”) with the power to levy special assessments within the boundary of the SID for the purpose of acquiring, improving and equipping special projects within the SID.

STATE OF NEVADA PUBLIC IMPROVEMENT PROJECTS ELIGIBLE FOR SID FINANCING

  • Commercial Area Vitalization
  • Curb and Gutter
  • Drainage
  • Off Street Parking
  • Overpass
  • Park
  • Sanitary Sewer
  • Security Wall
  • Sidewalk
  • Storm Drain
  • Street
  • Street Beautification
  • Transportation
  • Underpass
  • Water

BENEFITS OF SID

A SID can issue long term tax-exempt bonds to fund public improvements, which are repaid through the levy of special assessments collected from property owners residing within the boundary of the SID. The use of tax-exempt bond financing to pay for public improvements results in lower borrowing costs than other traditional forms of financing used by the developer. These lower financing costs benefits ll parties involved in the real estate transaction, including the ultimate homeowner.

Three SID Stages:

  • Planning Stage: Pre-SID Formation
  • Implementation Stage: SID Formation & Bond Issuance
  • Compliance Stage: After Bond Closing
  • Land Secured Public Financing
  • School District
  • Reimbursement and Credit
  • Fiscal Impact
  • Service Districts
  • Municipal District Services
  • Development Impact Fee
  • Redevelopment District
  • Affordable Housing Financing
  • Other Public Financing
  • Compliance
  • Entitlement Analysis
  • Cash Flow Feasibility Analysis
  • Disclosure Services
  • Engineering Services
  • Project Management Services
  • Capital Markets Group
  • Property Tax Appeals

For more information please contact DPFG.com

DPFG is primarily a transaction-oriented firm that specifically focuses on the real estate industry.

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