CDD

Mitch

From a Google search on what is a CDD in FL:

A CDD is a legal entity that has the power and right to enter into contracts; 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 to impose assessments and levy taxes on property within the district.

Find out about CDD's here: Community Development Districts – What you should know

Quote:

Q: Who governs the CDD?

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.

It's very likely that a CDD has bylaws or equivalent, I don't see how a legal entity could function otherwise. Something has to spell out how these entities are governed, including the duties of the Supervisors.

I own a condo in a development that has a CDD, a master association and a condo association. Each of these is a separate entity operating under different statutes, with different bylaws and governing documents. Needless to say it is complicated. A CDD is governed differently than an HOA.

CDDs are a popular way in Florida (and maybe elsewhere) to push development costs onto owners. Instead of the developer funding all of the improvements as they build the community, they take out bonds and other financing to pay for them, and then pass along the costs so the owners are responsible for payments later. They are required to have a website.

Here is what the CDD for my community says: Please be advised that the XXX Community Development District (the “District”), a local unit of special purpose government created under Florida law, has constructed and is responsible for the maintenance of certain improvements, infrastructure and facilities within the District. The District financed this construction through the sale of tax-exempt bonds, a form of public financing. As a result, and in accordance with applicable federal and state law, all District owned improvements, infrastructure and facilities are and shall remain open and accessible to the general public. Should you have any questions on this matter, non-resident user fees applicable to District recreational facilities, or any other general District issue, please feel free to contact the District Manager.

The costs for the CDD in our county are added to our county tax bill, which is why the taxes for my under $300k condo are higher than the taxes for my over $600k home in the same county.

Here's more information from the website:

A Community Development District (CDD) is a 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?
Through a CDD, the community can offer its residents a broad range of community-related services and infrastructure to help ensure the highest quality of life possible. CDD responsibilities within our community may include storm water management, potable and irrigation water supply, sewer and wastewater management, and street lights.

How CDDs 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 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 Homeowner’s Associations
The CDD complements the responsibilities of community homeowner’s associations (HOAs). Many of the maintenance functions handled by these associations in other communities may be handled by the CDD. However, the associations have other responsibilities such as operating amenities and ensuring that deed restrictions and other quality standards are enforced. The CDD may contract with the master homeowner’s association to perform maintenance functions.

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, which is able to determine the type, quality and expense of CDD facilities and services.

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

The cost to operate a CDD is borne 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—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 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. Because costs and services vary depending upon the individual CDD, specific fee information is available for each community.

Lasting Value
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 District FAQs
Q: What is the Community Development District in our community specifically responsible for?
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?
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?

The CDD issues Special Assessment Revenue Bonds to finance community infrastructure. 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.