the heck is a CDD?!
A Community Development District is a
governmental unit created to serve the long-term specific needs of its
community. Created pursuant to
chapter 190 of the Florida Statutes, a CDD’s main powers are to
plan, finance, construct, operate and maintain community-wide
infrastructure and services specifically for the benefit of its
What will the CDD Do?
Through a CDD, the community can offer its residents a broad range of
community-related services and infrastructure to help ensure the highest
quality of life possible.
CDD responsibilities within a community may include storm water
management, potable and irrigation water supply, sewer and wastewater
management, and street lights.
How do CDDs Operate?
A CDD is governed by its Board of Supervisors which is elected initially
by the landowners, then begins transitioning to residents of the CDD
after six years of operation. Like all municipal, county, state, and
national elections, the Office of the Supervisor of Elections oversees
the vote, and CDD Supervisors are subject to state ethics and financial
The CDD’s business is conducted in the “Sunshine,” which means all
meetings and records are open to the public. Public hearings are held on
CDD assessments. and the CDD’s budget is subject to annual independent
Relationship with Home Owners Associations
The CDD complements the responsibilities of community home owners
associations (HOAs). Many of the maintenance functions handled by these
associations in other communities may be handled by the CDD. However,
the associations have other responsibilities such as operating amenities
and ensuring that deed restrictions and other quality standards are
enforced. The CDD may contract with the master home owners association
to perform maintenance functions.
Benefits to Residents
Residents within a community with a CDD may expect to receive three
major classes of benefits. First, the CDD provides landowners
consistently high levels of public facilities and services managed and
financed through self-imposed fees and assessments. Second, the CDD
ensures that these community development facilities and services will be
completed concurrently with other parts of the development. Third, CDD
landowners and electors choose the Board of Supervisors, which is able
to determine the type, quality and expense of CDD facilities and
Other savings are realized because a CDD is subject to the same laws and
regulations that apply to other government entities. The CDD is able to
borrow money to finance its facilities at lower, tax-exempt, interest
rates, the same as cities and counties. Many contracts for goods and
services, such as annually negotiated maintenance contracts, are subject
to publicly advertised competitive bidding.
Residents and property owners in a CDD set the standards of quality,
which are then managed by the CDD. The CDD provides perpetual
maintenance of the environmental conservation areas. This consistent and
quality-controlled method of management helps protect the long term
property values in a community.
The Cost of a CDD
The cost to operate a CDD is borne by those who benefit from its
services. Property owners in the CDD are subject to a non-ad valorem
assessment, which appears on their annual property tax bill from the
county tax collector and may consist of two parts—an annual assessment
for operations and maintenance, which can fluctuate up and down from
year to year based on the budget adopted for that fiscal year—and an
annual capital assessment to repay bonds sold by the CDD to finance
community infrastructure and facilities, which annual assessments are
generally fixed for the term of the bonds. Because costs and services
vary depending upon the individual CDD, specific fee information is
available for each community.
The CDD makes it possible for a community to offer the most desirable
elements of a master-planned community. Residents enjoy high quality
infrastructure facilities and services with the comfort and assurance of
knowing that the standards of the community will be maintained long
after the developer is gone. With a CDD in place, residents are assured
of the ability to control quality and value for years to come.
Community Development District FAQs
Q: What is the Community Development District in our community
specifically responsible for?
A: The CDD will provide the following publicly-owned elements:
Off-site road improvements, streets, sidewalks, street signs and street
lighting. This will be transferred to the County for maintenance Water
management. Including main line irrigation, lake and water control
structures Conservation areas, Water and sewer facilities, which will be
transferred to the appropriate franchised utility Landscaping and entry
Q: Who governs the CDD?
A: The CDD is governed by a five-member Board of Supervisors elected
initially by the property owners. Eventually, the Board will he elected
by majority vote of the resident electors in the community. A
professional manager implements the policies of the Board.
Q: How are CDD services financed?
A: The CDD issues Special Assessment Revenue Bonds to finance community
infrastructure. Generally, Community Development Districts assess each
property owner a yearly capital debt service assessment to pay back
those bonds. In the case of the CDD a significant portion of this
capital assessment will be prepaid by the developer at the time of
In addition, to maintain the facilities of the community and administer
the CDD, the CDD conducts a public hearing each year at which it adopts
an operating and maintenance budget. The funding of this budget is
levied as an operating and maintenance assessment on your property by
the Board of Supervisors. All residents pay for a share of the
maintenance of the CDD improvements through this annual assessment.
Q: How are annual assessments determined?
A: The annual operating and maintenance assessment amount will be set
annually by the Board of Supervisors.
Q: What are the ongoing responsibilities of the CDD?
A: The ongoing responsibilities of the CDD are to administer CDD bonds,
operate and maintain the community facilities for the benefit of the