What's the Difference Between CDDs and HOAs?

“Hi. We are looking for a new home and considering living in a master-planned community. We have some basic questions about CDDs and HOAs. First off, what are they and what do they do?”

This is a common question for William Ryan Homes Tampa online sales counselor Maxine Stull, who’s often the first contact for home buyers seeking information. In fact, she says, even second- and third-time homebuyers often need more information about CDDs and HOAs. 

With this in mind, here are some answers:

What are CDDs?

Community Development Districts, or CDDs, are common in Florida, where many new developments are created in areas where no infrastructure existed before. CDD fees cover the costs of various community amenities like clubhouses, tennis and basketball courts, playgrounds and pools. Additionally, CDD fees may cover the costs of building new roads, street lights and other types of infrastructure specific to the community (sometimes, including schools).

While CDD fees add to the cost of owning a home, this doesn’t mean that cost of owning a home in a CDD is necessarily higher. The key for a homebuyer is to understand what the fees include, and whether the total cost works for your budget. The upside for people living in a CDD is that they are living in a newer community, often with top-flight amenities.

Also, consider this: living in a community with a great community center, pool and gym might mean that you don’t have to spend money on joining a country club or fitness facility.

William Ryan Homes Tampa sells homes in three Tampa Bay area counties: Hillsborough, Pasco and Hernando. Three William Ryan Homes communities have CDD fees: Barrington at Southfork in Riverview, Lakeside in Hudson, and Lakeshore Ranch in Land O Lakes. 

The CDD fees in these communities range from $1,350 to $2,800 per year (based on lot size) and are paid to the county as part of your tax bill. A portion of the fees are removed after time (when debt service is paid.) The amenities include use of everything from clubhouses, resort-style swimming pools, basketball and tennis courts and playgrounds to fire pits, barbecue areas and dog parks.

What are HOAs?

Homeowners associations, or HOAs, maintain and improve a community’s common areas, regulate how houses and yards look, and create and run community events.

This includes landscaping such as mowing the lawn and trimming bushes in areas like medians and the community entrance, lake maintenance for fewer mosquitos, upkeep of the community pool, and other similar functions. Additionally, HOAs handle the ongoing repairs and occasional improvements of clubhouses and other community assets. HOAs also cover the cost of quality social and holiday activities for the neighborhood. In some instances, HOA fees can also include expenses like security services and insurance.

HOAs work to support property values in master-planned communities, by keeping the community looking appealing. Fees are determined by each association, which have meetings that include homeowner input. All William Ryan Homes communities have HOA fees, which vary from $40 to $90 per month.

The bottom line on CDDs and HOAs

The bottom line: CDD and HOA fees enhance homeowners’ quality of life by providing amenities in a master-planned community as well as add protection to home investments through the standard for property maintenance. 

Other common homebuyer questions

For answers to other common homebuyer questions, please visit a previous blog: “5 Most Common Questions New Home Buyers Ask Our Online Sales Counselor Maxine".