Staring at a listing in Horizon West, Lake Nona, or Winter Garden and seeing both CDD and HOA fees? You are not alone. Many Orlando suburbs use both to build and maintain beautiful, well‑planned communities, but the details can feel confusing. In this guide, you will learn what each fee covers, how they are billed, how lenders view them, and a simple way to verify total monthly costs before you buy. Let’s dive in.
CDD vs HOA in plain English
A Community Development District (CDD) is a special unit of local government under Florida law. A CDD can finance, build, and maintain public infrastructure and some community facilities within its boundaries. Many CDDs issue bonds to pay for big items like roads, water and sewer systems, stormwater, and amenity complexes. Property owners repay that bond debt through assessments.
A Homeowners Association (HOA) is a private nonprofit that manages daily operations and enforces community rules. HOAs run landscaping, pools and clubhouses, trash service where applicable, and reserves for future repairs. Dues are set by an annual budget and collected monthly, quarterly, or yearly.
In many Orlando master‑planned neighborhoods, you will see both. The CDD helps the developer fund infrastructure up front, while the HOA handles ongoing services and covenant enforcement after the community opens.
How fees are set and billed
How CDD assessments work
- A CDD sets an annual assessment that typically includes two parts: debt service for bonds and operations and maintenance.
- Many districts place the assessment on the county tax bill as a non‑ad valorem assessment. Some bill it separately.
- Prepayment depends on the bond structure. Some bonds allow prepayment, others do not. The exact rules live in the district’s bond documents.
How HOA dues work
- The HOA adopts an annual budget to fund routine operations and reserves. Dues are set to meet that budget.
- Dues are commonly billed monthly, quarterly, or annually.
- HOAs can levy special assessments for capital projects if reserves are not enough. Any special assessment must follow the HOA’s governing documents and Florida law.
What the money covers
- CDD: major infrastructure, stormwater systems, district‑owned roads, parks and regional amenities, and long‑term maintenance of those assets.
- HOA: daily services, landscaping, pool and clubhouse operations, routine repairs, covenant enforcement, management, and administrative costs.
Avoid overlap
Some communities split responsibilities between the CDD and HOA. Always confirm who pays for which amenity so you are not double‑counting a service in your budget.
What this means for your budget
Monthly affordability and underwriting
You should include both HOA dues and any CDD assessment when you calculate your monthly housing cost. Lenders include recurring assessments in debt‑to‑income calculations. Some use the monthly amount listed on the tax bill for CDDs, others use one‑twelfth of the annual total or the actual escrowed amount. Ask your lender early how they treat your specific community’s charges.
Taxes, liens, and escrow
CDD assessments are usually levied as liens and collected like non‑ad valorem assessments. HOA assessments are contractual liens that follow Florida’s HOA rules. Your title report will show recorded liens and any district assessments. If the CDD shows on your tax bill, it may be escrowed with taxes, but the economic impact is the same whether it is billed on the tax roll or separately.
Resale impact in Orlando suburbs
Higher recurring assessments can affect carrying costs and buyer demand. At the same time, high‑quality amenities funded through a CDD can support home values if those amenities match what buyers want. Clear disclosure of both items helps avoid surprises and supports marketability when you decide to sell.
Risks to weigh
- Long bond terms mean predictable, long‑lasting CDD assessments.
- Both HOAs and CDDs can add special assessments when needed.
- Early in a community, developer‑controlled boards may set policies that change after turnover.
- Pending litigation or collection issues can affect future assessments. Review recent meeting minutes and financials for both entities.
How to verify fees before you buy
Ask for these documents
Request these items before you write an offer or during your due diligence period:
- HOA: current budget, reserve study if available, recent financials, CC&Rs and rules, and the last 12 months of board meeting minutes.
- CDD: current budget, the most recent property tax bill that shows any non‑ad valorem assessments, board meeting minutes, and the district engineer’s report or long‑range plan if available.
- Written disclosures that list current HOA dues, CDD assessments, and whether the CDD is billed on the tax bill or by separate invoice.
Pull these public records in Orange County
- Orange County Property Appraiser: review the property record and tax bill to see non‑ad valorem assessments and verify district information.
- Orange County Tax Collector: learn how non‑ad valorem assessments are billed and paid.
- Title company or attorney: order a preliminary title commitment to confirm any recorded district liens or assessment obligations.
- CDD public records: budgets, bond documents, and meeting minutes are public. Many districts post them online and hold open meetings.
Key questions to ask the HOA and CDD
- HOA: What are current dues and payment frequency? Any planned increases or special assessments? What are reserve levels and the date of the last reserve study? Any pending litigation?
- CDD: What is the total annual assessment, broken out by debt service and operations? Is it on the tax bill or separate? Can the bond be prepaid? What is the remaining term? Who owns and maintains each amenity? Any upcoming capital projects or maintenance changes?
Simple monthly cost calculator
Build your total monthly housing cost using this checklist:
- Mortgage principal and interest
- Property taxes, divide the annual amount by 12
- Homeowner’s insurance, divide the annual premium by 12
- HOA dues, monthly or convert to monthly
- CDD assessment, divide the annual amount by 12 or include with the tax line if it is on your tax bill
Confirm with your lender whether the CDD will be escrowed and how it will be counted for qualifying.
Red flags and timing tips
- Large upcoming special assessments or a low HOA reserve fund.
- CDD bond debt that cannot be prepaid and will last many years.
- Confusion about who maintains an amenity. Ask for written confirmation in the governing documents.
- Get CDD and HOA details before you write an offer, or add a contingency to review association and district documents.
- During escrow, order the HOA estoppel letter and CDD documentation to confirm exact amounts and any outstanding balances.
Decision framework: which fit your priorities?
Use these prompts to see how CDD and HOA charges align with your goals:
- You prioritize new infrastructure and full‑service amenities: A CDD‑funded community may offer the scale of parks, pools, trails, and stormwater systems you want. Expect a long‑term assessment, then compare it with the amenities you will use.
- You prefer lower ongoing costs and fewer facilities: Look for communities with smaller amenity packages and confirm both the HOA budget and whether a CDD exists.
- You value predictability: Ask about the CDD bond schedule, the remaining term, and whether the operations budget has been stable. Review the HOA’s reserve plan and history of increases.
- You care about resale to the widest audience: Price‑sensitive buyers focus on total monthly cost. Make sure you understand how the combined HOA and CDD charges compare with similar nearby neighborhoods.
Local resources and next steps
Here is a simple path to move forward with confidence in Orange County:
- Before you offer, verify current HOA dues and whether a CDD is present by reviewing the seller’s disclosures and the latest tax bill.
- Add a contingency to review HOA and CDD documents during your inspection period.
- During escrow, obtain the HOA estoppel letter, CDD budgets and meeting minutes, and a preliminary title commitment that confirms any liens or bond language.
- Ask your lender how they will treat the CDD in your qualification and whether it will be escrowed.
- Speak with a tax advisor about how your specific CDD charges may be treated for federal income tax.
If you want a local guide to help you compare communities side by side and estimate your true monthly cost, reach out to Edgar Rodriguez. You will get clear, bilingual guidance, neighborhood‑level insight, and a plan that fits your budget and timeline.
FAQs
What is a CDD in Orlando suburbs?
- A Community Development District is a local government entity that finances and maintains infrastructure and certain amenities, often repaid by homeowners through annual assessments.
How are CDD assessments billed in Orange County?
- Many appear on the county tax bill as non‑ad valorem assessments, while some districts send a separate invoice. Check the latest tax bill for your parcel to confirm.
How do lenders count CDD and HOA in qualifying?
- Lenders include recurring assessments in your housing expense. Some use one‑twelfth of the annual amounts or escrow figures. Ask your lender which method they use.
Can I prepay a CDD assessment when I buy a home?
- Sometimes, but it depends on the district’s bond documents. Some bonds allow prepayment, others do not. Confirm with the district before making plans.
Will CDD and HOA fees affect resale value?
- They affect carrying cost and buyer demand. Well‑maintained amenities can support value, but higher combined fees can narrow the buyer pool. Clear disclosure helps.
