Community Development District
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 residents.
What will the CDD Do?
How do CDDs Operate?
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 audit.
Benefits to Residents
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
Community Development District FAQs
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 features.
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 closing.
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 property owners.