If your subdivision has only an HOA: In this case, the HOA is there to make sure assets like the pool, playgrounds, and common areas are well maintained, in addition to making sure the CC&Rs are upheld by the residents.If the home you’re looking at is in a community that has both CDD and HOA: The Homeowners Association deals with things like the overall condition of the neighborhoods and ensures the covenants and restrictions are adhered to regarding the appearance of the homes in the community.In an HOA, a homeowner is also subject to certain Covenants, Conditions, and Restrictions (CC&Rs), which outline what a homeowner may or may not do with the property. Make sure to inquire when the bond will be paid off, because that will leave you with only the O&M portion to pay.Įach HOA (or Homeowners Association) can vary a bit based on the community or subdivision, but an HOA fee is basically a predetermined set fee that each homeowner in the community pays monthly, quarterly, or annually to help maintain the community. The bond portion has an end date similar to a mortgage. Usually a portion of the CDD collected is the actual bond repayment, and the balance is the continued Operations and Maintenance (O&M) of the community. If you have a mortgage, this is amortized into your payment. The CDD shows as an assessment on the homeowners’ tax bill each year and is collected by the county tax collector. That “loan” is repaid by the homeowners in the community, with each property charged an annual amount. We have several wonderful planned CDD communities in Northeast Florida, including Fleming Island Plantation, Nocatee, Eagle Landing, and Julington Creek Plantation.Ī CDD allows the developer to finance the costs with a CDD bond through tax-free municipal bonds. Most planned communities have a CDD, which means they normally have desirable amenities, possibly activity staff and community sponsored events. So what’s the difference between CDD and HOA?Ī CDD (or Community Development District) is basically a type of government entity that provides infrastructure such as roads, utilities, and amenities to specific planned unit development (PUD). One important question for home buyers: Does the home you’re interested in require CDD or HOA fees? These fees can affect your monthly payment, and there might also be community restrictions to consider. Home buyers, especially first-time home buyers, have many things to consider.
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