Florida Community

As part of Buy Owner’s mission to put more real estate information in your hands, giving you back the power in home buying/selling, we are happy to offer informative posts like this one, where we explain real estate terms.

If you have looked at Florida real estate, particularly in select areas, the term CDD (Community Development District) may have come up. Here’s a breakdown of what that means and why it matters to you as a home owner:

What is a CDD? A CDD is considered to be a local, special-purpose government in Florida per Chapter 190 of the state’s statutes. This government boasts an alternative method for the managing and financing of the systems required to support the development of a new community.

Where will I find a CDD property? CDD properties are located in Lee County, which includes the cities of Fort Myers, Estero and Bonita Springs.

What can a CDD do? A Community Development District possesses an authority over several real estate matters. Some of these powers include the right to enter into contracts, the right to sue/to be sued and the right to obtain funds by borrowing. A CDD may also levy taxes or assessments on a property. These fees cover the construction, the operation and the maintenance of public facilities and services inside the district.

Is a CDD similar to an HOA? Yes. However, residents of communities may pay an association fee for lawn care, trash pickup, cable and other maintenance-related things. Your CDD fee will also cover the building of roads, schools, business and other local community amenities that complete the infrastructure of the neighborhood.