What are SIDS / 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 up front and add the cost to the sales price of each lot/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 master planned community and paid off on a semi annual basis over a pre-determined number of years. The term SIDS is more common in the Summerlin area while LIDS is more common in Green Valley and Seven Hills.
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 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).