A Community Development District (CDD) is a local, special purpose government authorized by Chapter
190 of the Florida Statutes as amended and is an alternative method for managing and financing
infrastructure required to support community development. CDD’s possess several powers as a legal
entity, such as the right to enter into contracts; the right to own both real and personal property; adopt by-
laws, rules and regulations and orders; to sue and be sued; to obtain funds by borrowing; to issue bonds
and levy assessments.
There are 600 Community Development Districts in Florida, 438 of which were begun in 2003 through
2008. They have issued $6.5 billion in municipal bonds to finance their infrastructure. Since the collapse
of the housing market, over 168 of these districts are in default on $5.1 billion of bonds and, in many
cases, the project developer is in financial distress as well. None of these districts are in my service
area of Sarasota, Manatee, or Charlotte Counties. You can read more about CDD's here on this website.
|Many home buyers may not be aware of CDD fees, and how they affect the ownership costs of homes in the Sarasota area and other parts of Florida.
CDD's provide a way to finance community development through the levy of bonds, which usually have a
term of 30 years. I most often see CDD fees in a range of $500 to $2000 per year, depending on the
community or area.
These taxes and assessments are in addition to county and other local governmental taxes and
assessments and all other taxes and assessment provided for by law.
MLS listings have a field for the CDD fee for the property, where applicable. Sometimes this field is left
blank, and the property tax field contains the combined CDD and property tax amount. Please be sure to
ask me to research the tax records to provide you with an accurate estimate of total property taxes.
Some buyers are reluctant to pay higher property taxes in today's economy, but many others see a definite
benefit of living in a CDD.
CDD's pay for the installation, maintenance, and operation costs of items such as roads, lighting,
landscaping, signs, bike paths, and parks. The beautifully landscaped neighborhoods in CDD's attract a
lot of buyers and give peace of mind to seasonal residents who are assured their community is being
well maintained during their absence.
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