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Glossary · HOA & CDD

CDD vs. HOA

Two different bills, two different legal animals, and most new-construction buyers owe both.

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Quick definition
An HOA is a private association (Chapter 720) funded by dues you pay directly; it enforces covenants and runs private amenities. A CDD (Community Development District, Chapter 190) is a unit of special-purpose government that financed the community's infrastructure with bonds; its assessment — debt service plus operations & maintenance — appears as a non-ad-valorem line on your property-tax bill. Most large newer Florida communities have both, and the CDD line is the one out-of-state buyers don't see coming.

What each one pays for

CDD assessments repay the bonds that built roads, utilities, stormwater systems, and often the amenity centers, plus the district's ongoing operations and maintenance. HOA dues fund the private side: covenant enforcement, management, landscaping of common areas the district doesn't own. The split varies by community — in some, amenities are district-owned; in others, association-owned.

How the bills differ

The CDD line rides the November tax bill as a non-ad-valorem assessment — a fixed schedule per lot type, not a percentage of value — and typically runs until its bond series matures, after which the O&M portion continues. HOA dues bill directly on the association's cycle and change with its budget. Our verified per-village tables (Nocatee, Lakewood Ranch, Wesley Chapel) show real CDD amounts from district documents.

Questions to ask before buying

Four numbers define the load: the CDD debt portion and its remaining term, the CDD O&M portion, the HOA dues, and any master-association layer on top. Whether a CDD's bond portion can be paid off early — and whether that makes sense — depends on the district; the district's own budget documents are the source of truth. Our CDD explainer walks the full framework.

Common questions.

Is a CDD fee part of my property taxes?
It appears on the same November tax bill as a separate non-ad-valorem assessment line — a fixed amount set by the district, not a rate on your home's value. It is collected with taxes but is not the ad-valorem tax itself.
Do I pay both CDD and HOA in the same community?
Frequently, yes — most large newer master-planned communities carry a CDD assessment on the tax bill and HOA dues billed by the association.
Does the CDD fee ever end?
The bond (debt) portion ends when that lot's bond series is repaid; the operations & maintenance portion continues as long as the district operates. Per-lot schedules are in the district's assessment documents.
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New to community development districts? Start with the plain-English guide: What is a CDD fee? — what it pays for, what it typically costs, how long it lasts, and how it differs from HOA dues.