4-Seasons 7B & 7D Overcharged CFD Taxes Paid to K Hovnanian

Only Beaumont is crazy enough to track their Illegal Activity & use it for Reference.

On August 13, 2018 the City of Beaumont transferred $2,155,042.03 to K Hovnanian. According to the City; the money came from the illegally overcharged Mello Roos CFD Taxes collected from Four Seasons Development Areas 7B and 7D.

What the City of Beaumont has labeled ‘Paygo’ is in fact a spreadsheet documenting the CFD Property Taxes overcharged to Area 7B since it’s inception in 2007. The chart shows that the City charged CFD Taxes three years before there was a bond to pay.

From 2007 to 2018 the City overcharged Four Seasons Development Area 7B $1,772,142.

Four Seasons Area 7D started selling houses in 2015. From 2015 to 2018 the City overcharged a total of $486,410 in CFD Mello Roos Taxes to Area 7D.

The letter from KHov representative Zimmerman Group states: “Since the CFD bonds have not been issued yet, this Payment Request is for the IA 7B & 7D PayGo Special Taxes collected by the City for fiscal year 2007-08 through fiscal year 2017-18 in the amount of $2,258,552.”

So the City promised the Developers that if they could not give them bond money by June, 2018, the City would give the Developers the excess Mello Roos Taxes the City has been illegally charging the Developers’ Property Owners.

But when the City did get Bond Debt on the Four Seasons Developments; they passed all of the money in the Bond’s Construct Funds to the Developers too. Area 7B was burdened with another $2,370,000 Bond and Area 7D was burdened with its first Bond of $3,725,000 on October 25, 2019.

Beaumont charged CFD Taxes regardless of bond debt, which is illegal.