Community Development District, or more commonly referred to as "CDD" is an independent special-purpose government unit created to serve the long-term specific needs of its community. The main objectives of the CDD are to plan, finance, construct, operate and maintain community-wide infrastructure. and services specifically for the benefit of the residents within the CDD.
Essentially, a CDD is a financing mechanism for the infrastructure. The developer can finance the infrastructure and charge this to buyers when they buy new properties within in the community AND this infrastructure cost is paid upfront; or a CDD can be created to spread this cost out 20-30 years. Keep in mind, when a CDD has been paid in full, there will be ongoing operating and maintenance costs.
How do CDDs Operate: A CDD is governed by its Board of Supervisors, which is elected by the landowner, then transitions to the residents of the CDD Community. The Office of Supervisor of Elections oversees the vote, and CDD Supervisors are subject to state ethics and financial disclosure laws. The District's business is conducted in the "Sunshine", which means all meetings and records are open to the public.
The Cost of a CDD: The costs are borne by those who benefit from its services. Homeowners in the CDD are subject to a non-ad valorem assesment, which appears on their annual proeprty tax bill and may consist of two parts:
- the share of annual debt services on the CDD. This amount is generally a fixed amount
- annual assessment for operations and maintenance, which can fluctuate based on the budget adopted for the fiscal year
Benefits of a CDD: Residents should expect to receive three classes of benefits
- high levels of public facilities and services managed and financed through self-imposed fees and assessments
- ensure the CDD facilities and services will be completed concurrently with other parts of the development
- district landowners and electors choose the Board of Supervisors who determine the type, quality, and expense of District facilities and services
Residents will enjoy high-quality roadways, landscaping, and other services knowing the community will be maintained by the CDD long after the development is complete.
CDDs in Florida are part of Chapter 190 of the Florida Statutes. For a list of CDDs in Southwest Florida, please go here: