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Tuesday, March 21, 2017

Everything You Need to Know About CDDs

What is a CDD and how does it differ from an HOA? We’ll answer that for you today.

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Today we’re answering the question, “What the heck is a CDD?”

Most people are familiar with what homeowners association fees entail, but because we’ll be comparing an HOA to a CDD, we’ll give you a brief breakdown.

The homeowners association, or HOA, covers the operations and maintenance of the amenities in the neighborhood. When that community was first built, however, the initial costs of putting in those amenities was tacked onto the sales price of each home. The HOA took over from there.

CDDs and HOAs ensure you can enjoy the community amenities from the day you move in.

A CDD, or community development district, covers the cost of the initial amenities so there are no extra costs for them tacked onto the sales prices of the homes when they are built. So how do they come up with the money?

The cost is based on how much money it will take to put the amenities in as well as how many homes will be in the community. There are two portions of the CDD. The first is the bond, which pays for the initial costs, and the second is the maintenance portion. The maintenance portion works in the same way HOA fees do, in which case you pay a set amount each month to help maintain those amenities.

Both HOAs and CDDs work to make sure you can enjoy all a particular neighborhood or community has to offer right from the time you move in.

If you have any more questions about how HOAs and CDDs work or you have any other real estate questions, please feel free to give us a call or send us an email. We’re happy to help!