How CDD's 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 disclosure laws. The CDD's business is conducted in the Sunshine, which means all of the 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 audit.
Relationship with HOA's
The CDD complements the responsibilities of a community's Home Owner's Association (HOA's). Because Associations have other responsibilities such as operating amenities and ensuring that deed restrictions and other quality standards are enforced, many of the maintenance functions handled by an Association in other communities can now be handled by the CDD.
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 and determines the type, quality and expense of CDD facilities and services. Other savings are realized because a CDD benefits from the same laws and regulations that apply to other government entities. Just like cities and counties, the CDD is able to borrow money to finance its facilities at lower, tax-exempt interest rates. Many contracts for goods and services, such as annually negotiated maintenance contracts are subject to publicly advertised competitive bidding ensuring the lowest possible expenditure.
Residents and property owners in a CDD set the standards of quality, which are then managed by the CDD; in other words, the CDD's business is set by the residents, for the benefit of the residents. The CDD also 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 shared 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: (i) 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 (ii) 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. Costs and services vary depending upon the individual CDD.
The CDD makes it possible for our 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 Districts
A CDD is a governmental unit created to serve the long-term specific needs of its community. It is created pursuant to chapter 190 of the Florida Statutes, a CDD's main powers are to plan, finance, construct, operate and maintain the community-wide infrastructure and services specifically for the benefit of its residents.
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 living excellence in your new community. The CDD's responsibilities within the community may include storm water management, potable and irrigation water supply, sewer and wastewater management and street lights.
CDD's Questions and Answers
Q What specifically is the CDD responsible for in our community?
A The CDD will provide the following publicly owned elements:
- Off-site road improvements, street signs and street lighting.
- Water management, including mainline irrigation, lake and water control structures.
- Conservation areas.
- Water and sewer facilities, transferred to the appropriate franchised utility.
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 be elected by majority vote of the resident electors in the community. A professional manager hired by the Board of Supervisors implements the policies of the Board.
Q What do I pay for the services?
A The CDD issues Special Assessment Revenue Bonds to finance the community infrastructure. Generally, CDD's assess each property owner a yearly capital debt service assessment to pay back the bonds over 30 years.
In addition, to maintaining the facilities of the community and administer 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. 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 the CDD bonds and operate its community facilities and services for the benefit of the property owners. It is contemplated that, pursuant to the terms of an agreement between the CDD and our Home Owners Association, the Home Owner's Association may operate and maintain certain Areas of Common Responsibility. These may include the following systems and facilities of the CDD:
- Irrigation water facilities not owned by the franchise utility.
- Wetlands, water management and drainage.
- Certain Common Areas including Conservation Area.