What formation does Arizona law allow to finance infrastructure for a subdivision development?

Arizona law allows the formation of Community Facilities Districts (CFDs) to finance infrastructure for subdivision development. CFDs are established to provide funding for essential public services and infrastructure, such as roads, parks, and schools, especially in areas undergoing growth. Through the creation of a special district, jurisdiction can issue bonds that are repaid through property taxes collected from the residents within the district. This financial mechanism enables developers to fund necessary improvements that support new subdivisions, making it a crucial tool for promoting growth and ensuring that the necessary infrastructure is in place to accommodate new residents.

On the other hand, although Homeowner's Associations (HOAs) and Planned Communities are important for managing community standards and amenities, they do not specifically serve as a financing mechanism for infrastructure. Similarly, Planned Unit Developments (PUDs) refer to a type of zoning that allows for a mix of uses and density but does not inherently provide a financing structure for infrastructure needs. Therefore, the choice of Community Facilities Districts stands out as the correct answer in the context of financing infrastructure in subdivision developments.