HOA & CDD
HOA & CDD, in plain English
Much of newer Florida lives with one or both. Here is what they are, how they differ, and how to check what a specific home carries.
Home/HOA & CDD
What an HOA is
A homeowners association is a private organization of the owners in a community. It enforces deed restrictions (paint colors, parking, lawns), maintains shared amenities, and charges dues billed directly to you. Rules and fees vary enormously between communities, and some neighborhoods, including parts of Lake Nona, have none at all.
What a CDD is
A community development district is a special-purpose government unit created under Chapter 190 of Florida law. Developers use CDDs to finance infrastructure like roads, ponds, and clubhouses; the debt is repaid through assessments that appear on your annual property-tax bill, often for decades. A CDD assessment is not optional and does not disappear when the developer leaves.
The difference that matters
HOA dues are private bills for rules and upkeep. CDD assessments are on your tax bill for infrastructure debt and district operations. A home can have both, either, or neither, and two similar homes a street apart can carry very different totals.
How to check any property
- Pull the parcel on the Orange County Property Appraiser and review the most recent tax bill via the Orange County Tax Collector. CDD and other non-ad-valorem assessments appear as separate line items.
- Ask for the HOA's governing documents, current budget, and fee schedule before you write an offer. Florida sellers must disclose association membership.
- If a CDD exists, ask how much of the assessment is bond debt (which can eventually be paid down) versus operations (which continues).