Florida New Home Communities - HOAs and CDDs

Many first-time home buyers and even seasoned buyers who have never purchased in a Florida new home communityare unfamiliar with homeowners association(HOA) and Community Development District (CDD) fees and what those fees are used for.

In a nutshell, HOAs and CDDs help preserve the overall quality of life in a new home community as well as the resale value of your home.

Some communities have HOA fees and CDD fees. When both are in place, the HOA is generally responsible for enforcing the deed restrictions (limitations on how the property can be used) and the CDD is responsible for taking care of the general maintenance of the community.Homeowners Association (HOA)

When you buy a Florida single-family new home, Florida townhouse or Florida Condo that is part of a planned community or subdivision, you will automatically become a member of the community's homeowners association.

The HOA is an organized body of homeowners that have control over how common areas in the community are maintained and used. The HOA may also have restrictions and requirements regarding homeowners' individual property.Most HOAs are created when the development is built and controlled by the developer until most of the homes in the community are sold out.

The HOA issues Covenants, Conditions & Restrictions (CC&R's) to each homeowner in order to ensure that the value and quality of the common property as well as individual properties within the development are maintained to a specific standard.

HOAs are corporations with formal bylaws with a governing board that hires a property management company to handle maintenance and the enforcement of their CCRs. HOA membership is mandatory for all homeowners within the development and members are charged mandatory HOA fees.

Typically, an HOA has the authority to enforce restrictions on individual homeowners such as the type of landscaping or fencing used, exterior paint color, number and/or types of cars allowed to park in front of a home, storage of boats and RVs, pool and pool cage restrictions, number of pets allowed, individual landscaping restrictions and so forth. Community Development District (CDD)

CDDs provide for the financing and management of new communities, which is consistent with the local government's development procedures and regulations.

CDDs can impose assessments on homeowners' property to help pay for the construction, maintenance and operation of certain public facilities, including building utilities, new roads, water, waste/sewer, schools, conservation areas, streetlights, bridges, etc.

CDDs can also be used to pay for community amenities such as parks, walking and biking trails, swimming pools, club houses, tennis courts, golf courses, security gates and so forth.

Typically, property tax assessments are divided amongst residents of individual Florida new home communitiesover a 20 year period, allowing developers and builders to defray upfront expenses and offer Florida new homes for sale at lower costs.