HOA vs CDD, explained
Two letters you will see often in Florida new communities. They sound alike, they are not the same thing, and both can affect what you pay.
What an HOA is
A homeowners association is a group that sets and enforces the community rules, such as exterior colors, fences and parking. It also manages shared spaces and amenities, such as a pool, clubhouse or entrance. Members pay dues on a regular schedule. Not every community has one.
What a CDD is
A community development district is a local government unit that some Florida communities use to pay for roads, drainage, utilities and other infrastructure. It is repaid through an assessment that usually shows up on the property tax bill. A community may have an HOA, a CDD, both or neither.
Why it matters to you
Both affect your monthly cost of owning the home, and they are separate from the purchase price. Ask for them in writing for the exact community you like, so you can compare it with the others on your list.
Questions worth asking
What does the HOA cover, and what does it not? How often can dues change? Is there a CDD, and for how many years does the assessment run? What does it pay for? I will confirm the details with the builder for any community you are considering.
Living with the rules
Rules protect shared values, and they also limit what you can do. If you plan a fence, a pool, an RV or a short-term rental, check the rules before you choose the community.
Common questions
Is a CDD the same as an HOA?
No. An HOA is a private association that manages rules and shared spaces. A CDD is a local government unit that pays for infrastructure.
Do all new communities have one?
No. Some have an HOA, some have a CDD, some have both and some have neither.
Where can I see the exact figures?
In the community’s written disclosures from the builder. I confirm them with the builder for the community you choose, and I do not quote them from memory.