Staring at a listing with both an HOA fee and a CDD assessment and not sure what they mean? You are not alone. These line items can change your monthly payment and your long‑term costs in real ways. In this guide, you will learn the difference between HOAs and CDDs in Orlando, how each fee is set and collected, where to find them on local records, and how to factor them into your budget and offer. Let’s dive in.
HOA vs. CDD in Florida: The basics
An HOA is a private association created by a developer and governed by recorded covenants, conditions and restrictions, bylaws, and Florida law. In Florida, HOAs operate under Chapter 720 of the Florida Statutes. HOAs collect regular dues and can set community rules, maintain common areas, and levy fines. They can also place liens for unpaid assessments and, in certain cases, foreclose for nonpayment.
A CDD is a local, special‑purpose governmental unit formed under Chapter 190 of the Florida Statutes. A CDD plans, finances, builds, and maintains community infrastructure such as roads, drainage, water management, parks, and amenity centers for a defined area. CDDs often issue bonds to fund that infrastructure, and properties in the district repay those costs through district assessments.
How fees are set and collected
HOA dues: budgets and billing
HOA dues are set each year by the association’s board based on an adopted budget. Typical expenses include landscaping, insurance, management fees, reserves, and upkeep of amenities or security. Dues are usually billed monthly, quarterly, or annually by the HOA or its management company.
If the HOA faces unexpected repairs or large projects, it can levy a special assessment according to the governing documents. For unpaid assessments, an HOA can add late fees and interest, suspend privileges, record a lien, and pursue foreclosure remedies as allowed by Florida law.
CDD assessments: bonds and operations
CDD assessments are based on the district’s annual budget and the obligation to repay any bonds used to finance infrastructure. Assessments are allocated using formulas adopted when the district was formed, often per platted unit or by equivalent residential units. Many CDDs place assessments on the county tax roll as non‑ad valorem assessments, which show up on the property tax bill. Some districts bill owners directly.
CDD assessments are liens against the property. Nonpayment can trigger collection actions and, if unresolved, foreclosure according to district rules and state law.
Key differences at a glance
- Authority: HOA is a private association under recorded covenants. CDD is a public special district with statutory powers.
- Purpose: HOA dues fund ongoing maintenance and amenities. CDD assessments often repay long‑term infrastructure debt and fund district operations.
- Collection: HOA dues are billed by the association. CDD assessments commonly appear on the county tax bill as non‑ad valorem charges.
- Duration: HOA dues can change year to year. CDD assessments may continue for many years to match bond schedules and district budgets.
Orlando and Orange County context
Across Orlando and Orange County, you will find HOAs in many communities, including established subdivisions, newer neighborhoods, and condominium properties. In older, infill areas near central Orlando, HOAs are common even when there is no CDD.
CDDs are most common in newer, master‑planned communities and large residential developments where the developer used district financing for roads, drainage, ponds, and amenity centers. You are more likely to see CDDs in fast‑growing corridors of Orange County, including parts of southwest and southeast Orlando.
In suburban, newer neighborhoods, it is common to have both an HOA and a CDD. In many older areas, you may see an HOA without a CDD.
Where to see fees in listings and records
- MLS listings: Look for an “HOA fee” and the billing frequency. CDDs may be shown as a separate “CDD fee” or as a non‑ad valorem assessment, listed annually or as a monthly equivalent.
- Tax bill and county records: If the CDD uses the tax roll, it appears on the Orange County property tax bill as a non‑ad valorem assessment with the district’s name. You can also verify special districts and assessments through the Orange County Property Appraiser or Tax Collector.
What these fees mean for your budget
Both HOA dues and CDD assessments raise your ongoing monthly costs. When you build your budget, include principal and interest, property taxes, insurance, utilities, HOA dues, and any CDD assessments.
CDD assessments can last many years because they often repay bonds with multi‑year terms. HOA dues can go up or down with the board’s annual budget, and special assessments may be approved for major repairs or improvements. Plan for both ongoing payments and the possibility of changes.
Mortgage and underwriting tips
Lenders usually verify recurring HOA and CDD assessments during pre‑approval and underwriting. If a CDD assessment appears on the tax bill, many lenders treat it similar to a tax line item when calculating your debt‑to‑income ratio.
Large HOA dues or CDD assessments can impact loan qualification and structure, so disclose them to your lender early. Some loan programs have specific guidance for properties with special district assessments. Ask your lender for program‑level details for FHA, VA, or Conventional loans.
Buyer checklist: before offer and closing
Use this step‑by‑step list for Orlando and Orange County purchases.
Before making an offer
- Ask the listing agent or seller whether the property has an HOA, a CDD, or both.
- Request the current HOA dues, any pending increases, and whether any special assessments are known or approved.
- Ask if the CDD assessment is on the tax bill and request the most recent bill showing the non‑ad valorem line items.
During the contract period
- Review HOA documents: covenants, bylaws, rules, recent meeting minutes, the adopted budget, and any reserve study.
- Obtain an HOA estoppel letter or account status letter showing dues, fees, and any special assessments or violations.
- Request CDD documents: current budget, recent meeting minutes, bond disclosures, and whether assessments are on the tax roll or billed directly.
- Check county records through the Orange County Property Appraiser or Tax Collector for special districts and non‑ad valorem assessments tied to the parcel.
- Confirm whether amenities are still under developer control or will be turned over to the HOA or CDD, since this can affect future costs.
At closing
Verify that prorations, credits, and any assessment payoffs are accurately reflected in the Closing Disclosure.
Confirm that the title company has addressed any liens and that all HOA and CDD assessments are fully disclosed to you.
Smart negotiation ideas
If a large special assessment is approved or a new CDD bond issuance is expected, you can request seller credits or negotiate the purchase price to offset future costs. If timing is uncertain, consider adding contingency language to allow for review of new budgets or assessment approvals.
Be sure your offer reflects the full carrying cost, not only the mortgage payment. Transparent math helps you stay competitive and protects you from payment surprises.
Common scenarios in Orlando
- You find a newer, master‑planned community with robust amenities. Expect an HOA for operations and a CDD repaying infrastructure bonds.
- You focus on an established neighborhood closer to central Orlando. You may see an HOA without a CDD, although always verify.
- A condo listing shows a higher monthly fee. That may reflect building insurance, maintenance, and reserves handled by the association rather than a CDD.
Final thoughts
Understanding HOA dues and CDD assessments helps you compare neighborhoods on equal footing. In Orlando and across Orange County, newer master‑planned areas often have both, while many established neighborhoods have only an HOA. The key is to verify amounts, check county records, and confirm any upcoming changes before you commit.
If you want clear guidance tailored to a specific property, connect with John R Gordon PA for local insight and a step‑by‑step plan. Ready to list or benchmark your equity? Get Your Home Valuation.
FAQs
How do I spot a CDD on an Orange County tax bill?
- Look for a non‑ad valorem assessment line with the district’s name or “CDD.” If you are unsure, contact the Orange County Property Appraiser or Tax Collector for clarification.
Are CDD assessments mandatory if my home is inside a district?
- Yes. If a property is within an established CDD, the assessments are generally mandatory until the district’s obligations change under applicable legal processes.
Can a property have both an HOA and a CDD in Orlando?
- Yes. Many newer, master‑planned communities have an HOA for maintenance and a CDD for infrastructure debt and district services.
Do CDD assessments end after bonds are paid off?
- They can. When district obligations are satisfied, the board may adjust assessments, but many bonds have long maturities, so assessments can continue for years.
Who answers questions about a specific community’s CDD?
- Start with the district’s management office. You can also review Orange County special district records and request documents from the seller and listing agent during your due diligence.
