What is a CDD? Community Development District

By
Real Estate Agent with Downing-Frye Realty, Bonita Springs, FL
http://actvra.in/47Rx

A Community Development District (CDD) is a local, special purpose government authorized by Chapter 190 of the Florida Statutes as amended and is an alternative method for managing and financing infrastructure required to support community development. Real Estate in Lee County, which includes the cities of Bonita Springs, Estero and Fort Myers may be subject to a CDD

CDD's possess several powers as a legal entity, such as the right to enter into contracts; the right to own both real and personal property; adopt by-laws, rules and regulations and orders; to sue and be sued; to obtain funds by borrowing; to issue bonds and levy assessments.


CDD's provide a mechanism for the financing and management of new communities, which is consistent with the local governments' development procedures and regulations. They represent a major advancement in Florida's effort to manage its growth effectively and efficiently.


The community development district may impose and levy taxes or assessments, or both taxes and assessments, on the property.


These taxes and assessments pay the construction, operation and maintenance costs of certain public facilities and services of the district and are set annually by the governing board of the district.
These taxes and assessments are in addition to county and other local governmental taxes and assessments and all other taxes and assessment provided for by law.

Q. Can I pay off my CDD assessment?

A. A: Yes, you can pay off the capital assessment on your property at any time, but not the O & M assessment

Q. What time period does the assessment cover?

A. A: CDD assessments are collected in advance.

Q. I paid off my CDD so why do I still have an assessment on my real estate tax bill?

A. The property continues to be subject to annual operating and maintenance (O & M) assessments for the maintenance of common improvements that the CDD provides. This assessment is subject to change annually with the adopted budget.

Q. What does the O & M pay for?

A. The O & M (operating and maintenance) assessment is an annual assessment for maintenance for common improvements within your community that the CDD provides. The services vary depending on which community you live in. For example, it may cover landscaping, street lights, guard facilities, roving patrol, storm water management, etc., or it may only include a few of the services listed above.

To perform a data search or to find information regarding a CDD in your neighborhood visit:   http://www.cddflorida.com

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Location:
Florida Lee County Bonita Springs
Tags:
cdd
bonita springs
community development district

Comments 9 New Comment

Rainmaker
443,511
Chris Griffith
Bonita Springs Fl Real Estate
Downing-Frye Realty, Bonita Springs, FL
CDD's are a means of collecting funds to pay for infrastructure and manage operating and maintenance expenses.  They are not dangerous.      
April 22, 2008 04:06 PM
Anonymous #6
Anonymous
Deanna Norris, Realtor Port Richey FL

Great inofrmation, Thanks!

 

September 04, 2008 08:50 PM
Anonymous #7
Anonymous
SADDLEWOOD

My wife and I found a number of properties in the Land O'Lakes area that we marked for further consideration.  When we got the data sheet on several of them we were absolutely stunned to find the hidden costs in owning property in Florida.  The average $4500 per year property taxes weren't bad ... but then they started adding $3600 for HOA and another $1200 for CDD.  CDD .... what a gem!  Can someone explain to us what my HOA fees are buying if the CDD pays for common area maintenance and all the frills?  We presently live in an adult gated community with a HOA and our fees pay for common are maintenance (greens, roads, exterior structure maintenance, gardening, etc...)  there is no such animal as a CDD.  Excuse us for saying so but this appears to be a thinly disguised way for the government to which you pay taxes to weasel out of spending the dollars to support infrastructure.  BTW ... since the CDD is a fee for service it probably isn't tax deductible either ... are we right?

We don't mind paying for what we get ... but we like to get what we pay for.  Are there any "other" hidden costs to owning a home in Florida?  If so can someone list them or provide a list of where we could find further information?

January 18, 2009 10:09 PM
Rainmaker
443,511
Chris Griffith
Bonita Springs Fl Real Estate
Downing-Frye Realty, Bonita Springs, FL

Leave your email address or email me.  You'll never find the answer because this system won't email you follow up comments.

January 18, 2009 10:13 PM
Rainer
125
Jay Jay

I am running into the same seniaro. I found a beautiful townhouse in a development which charges 188.00 for HOA fees. However when i look up the address to the property on miamidade.gov website it shows the property taxes plus this cdd fee which the property taxes are 1550 a year and this cdd fee is also 1550.00 a year also the HOA is 2256.00 a year. I mean this is unbelievable i can not see HOA covering greens,roads,street lights, if cdd claims to do just the same thing. Can this be explained in further detail to me as this is going to make me not buy the house. Because my house is simply 90,000 dollars but my mortgage would come out to the near 1200.00 a month because of all these extra fees. Also my co-worker just bought a house 130,000 and his mortgage payment is a simple 1000 dollars a month. This is mad that I will have a smaller and cheaper house than he does but pay more every month. How could this be possible. Also his taxes are cheaper than mine and we are not even 5 minutes apart from each other. I can not understand this.

September 06, 2010 07:25 PM
Rainmaker
443,511

Chris Griffith

Bonita Springs Fl Real Estate
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