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Home Buying 101: Discover the Benefits of CDD Fees

CEO Khai Intela
If you're in the market for a new home in Florida, you may have come across the term "CDD fees." But what exactly are CDD fees, and what do they entail? In this article, we'll...

If you're in the market for a new home in Florida, you may have come across the term "CDD fees." But what exactly are CDD fees, and what do they entail? In this article, we'll explore the world of Community Development Districts (CDDs) and shed light on the advantages they bring to homeowners. So, let's dive in!

What is a CDD?

CDD stands for Community Development District. These entities play a vital role in developing land, providing infrastructure and amenities, and maintaining communities to ensure a high standard of living for homeowners. CDD fees help offset the costs associated with community amenities and infrastructure development. The presence of CDD fees often translates to a lower purchase price for new homes due to deferred infrastructure costs.

What Does a CDD Offer?

A CDD caters to the needs of its residents by developing and maintaining common areas and resort-style amenities within the community. Imagine having access to swimming pools, dog parks, playgrounds, and community centers right in your neighborhood! CDDs also ensure that these areas and amenities are well-maintained based on the standards set by homeowners and the CDD board.

Living in a CDD community offers tremendous value, as you get to enjoy a visually appealing neighborhood with a wide range of recreational and functional amenities. All of this comes at a comparable price to homes built in non-CDD communities.

Understanding CDD Fees

CDD fees consist of two components: Bond (or Debt) and Operations and Maintenance. The Bond portion finances the development, infrastructure, and amenities of the community and is usually paid off over a 20- or 30-year period. On the other hand, the Operations and Maintenance portion covers the ongoing maintenance of the community and its amenities and may vary from year to year.

Both portions of the CDD fees are collected as part of your property tax bill. If you're financing your new home purchase, the payment of CDD fees is seamlessly integrated into your monthly mortgage payment. This means no additional out-of-pocket expenses to remember.

The CDD Structure

CDDs follow a similar organizational structure to other local governments in Florida. A five-member board, known as the Board of Supervisors, establishes the district's policies in accordance with state laws. The district also employs a District Administrator and District Counsel who handle engineering needs and oversee district operations.

CDD vs. HOA: Understanding the Difference

It's important to differentiate between a CDD and a Homeowners Association (HOA). While an HOA focuses on community standards enforcement and the maintenance of common areas and amenities in non-CDD communities, the situation is different in CDD communities.

In CDD communities, the HOA acts as a representative for homeowners when dealing with the CDD board. However, the HOA does not typically perform any maintenance or upkeep of common areas or amenities, resulting in lower HOA fees. The HOA still holds control over the Architectural Review Board and ensures community covenants and restrictions are followed.

Exploring Florida's New Home Communities

Now that you have a better understanding of CDDs and the associated fees, comparing costs and benefits between CDD and non-CDD communities becomes easier. If you're considering a home from Highland Homes, our New Home Specialists possess the knowledge and expertise to provide you with detailed information about CDD fees, monthly costs, planned amenities, and more. We'll help you find the perfect new home within your monthly budget.

Highland Homes builds new homes in several thriving locations across Florida, including metro Orlando, Ocala, Tampa Bay, Sarasota-Brandenton, and Lakeland-Winter Haven. If you're ready to turn your dream of owning a home in Florida into a reality, reach out to our Florida New Home Specialists via phone or email. We're here to guide you every step of the way.

Remember, investing in a CDD community ensures not only a comfortable living experience but also access to fantastic amenities that will enrich your lifestyle for years to come. Don't miss out on the incredible opportunities in Florida's vibrant new home communities!