Confused about CDD fees versus HOA dues when shopping in Davenport? You are not alone. Many master‑planned neighborhoods near ChampionsGate and along US‑27 use both, and it can be hard to see your true monthly cost. This guide breaks down the difference, shows you where to verify fees in Polk County, and gives you a simple due‑diligence checklist so you can buy with confidence. Let’s dive in.
CDD basics in Florida
A Community Development District (CDD) is a special‑purpose local government created under Florida law to plan, finance, build, and maintain community infrastructure. The legal framework lives in Florida Statutes Chapter 190. CDDs can issue tax‑exempt bonds for roads, water, sewer, stormwater systems, landscaping, and sometimes parks or amenities.
CDD assessments usually appear as non‑ad valorem line items on your county property tax bill. You are paying a share of the district’s bond repayment and operations tied to those public facilities. Early on, a developer often controls the board; over time, homeowners are elected to the board and meetings follow public governance rules.
HOA basics in Florida
A Homeowners’ Association (HOA) is a private association created by recorded covenants, conditions, and restrictions (CC&Rs). Florida Statutes Chapter 720 outlines many HOA powers and owner protections. HOA dues fund ongoing operations like landscaping, amenity upkeep, security, management, insurance for common areas, and reserves.
HOAs can levy special assessments and place liens for unpaid dues, following state procedures. Dues are billed by the association or its management company, often monthly or quarterly.
CDD vs HOA: key differences
- Purpose: CDD repays public infrastructure bonds and funds maintenance of those facilities. HOA runs private community operations and enforces covenants.
- Billing: CDD shows as a non‑ad valorem assessment on the Polk County tax bill. HOA bills you directly.
- Governance: CDD is a public board with open meetings. HOA is a private board under CC&Rs and Chapter 720.
- Permanence: CDD debt service typically lasts until bonds are repaid. HOA dues can change and special assessments can occur.
- Mandatory: Both are usually required if your property is within the district and association.
What fees often cover in Davenport
CDD funds commonly support roads, water, sewer, stormwater systems, entry features, parks, multi‑use paths, and sometimes community amenities that are structured within the district. HOA dues usually cover landscape maintenance, pool or clubhouse operations, security services, management fees, and reserves for future repairs. Read the documents to confirm what applies to your specific neighborhood.
How fees are billed and where to find them
In Polk County, CDD assessments typically appear on the annual property tax bill as non‑ad valorem charges. You can review tax bill history and parcel details with the Polk County Property Appraiser and confirm billing collection with the Polk County Tax Collector.
HOA dues are billed by the association or its management company. Ask for the current budget, dues schedule, and any pending special assessments before you make an offer.
How fees affect your mortgage
Lenders consider mandatory assessments when they qualify you for a loan. That means your CDD assessment and HOA dues may be included in your debt‑to‑income calculation. Some lenders require escrow for larger assessments. Ask your loan officer early how your program treats CDD and HOA charges and whether they will appear on your monthly escrow.
Due‑diligence checklist
Use this list before writing an offer or during your inspection period.
CDD documents
- Current parcel assessment amount or assessment roll
- Most recent CDD budget showing operations and debt service
- Bond summary with term and annual debt service schedule, or a letter from the district manager
- Engineer’s report describing what the district financed
- Any developer agreements and “true‑up” or capital contribution policies
- Recent meeting minutes and resolutions to spot potential changes
HOA documents
- Current CC&Rs, bylaws, rules and regulations
- Last 12 months of meeting minutes and financials
- Current budget, reserve study if available, and dues history
- Management company contact and a statement on delinquency rates
Closing and title
- Preliminary title commitment to check for recorded CDD liens or assessments
- Seller’s recent settlement statement for reference
Lender
- Underwriter guidance on how CDD/HOA are handled for qualification and escrow
Local steps: verify in Polk County
- Look up the parcel and last year’s bill with the Polk County Property Appraiser. Confirm the exact legal description and county.
- Review the tax bill details with the Polk County Tax Collector. Identify any non‑ad valorem lines tied to a CDD.
- Ask the listing agent or district manager for the CDD’s budget, assessment roll, and bond summary. Many districts host public websites with these documents.
- Request HOA financials, the current budget, and minutes to check for special assessments.
- Search recorded documents with the Polk County Clerk of the Circuit Court & Comptroller if you need plats, district formation records, or covenants.
- Confirm with your lender and title company whether assessments will be escrowed and whether any lump‑sum capital payment is due at closing.
ChampionsGate and US‑27 nuance
Neighborhoods near ChampionsGate and along US‑27 include several large master‑planned communities. Some straddle county lines, and many were built with CDD financing. Always verify the parcel’s county, recorded district, and association for the exact lot you are considering. In this corridor, plan for the possibility of both CDD and HOA obligations and confirm specifics in writing.
Build your monthly budget
To avoid surprises, work from a total cost view. Add:
- Principal and interest on your loan
- Property taxes and homeowners insurance
- CDD annual assessment divided by 12
- HOA dues (monthly or your quarterly amount divided by 3)
- A small buffer for potential HOA or CDD O&M increases
Review actual documents, not estimates, before you commit to a price. If anything is unclear, ask the district manager, HOA, or your lender to explain the line items in plain language.
When to call in pros
If you see unusual terms like a large “true‑up” payment or pending special assessments, pause and get clarity. Ask for written documentation from the district manager or HOA. For complex situations, consider a brief review with a real estate attorney. A little diligence now can protect your budget and help your future resale.
Ready to compare neighborhoods and run the numbers together? Reach out to Omar Sanchez for patient, local guidance and a clear game plan for buying in Davenport.
FAQs
What is a CDD fee and is it mandatory?
- CDD assessments are mandatory for properties within the district and usually appear as non‑ad valorem charges on the county tax bill.
How is a CDD different from an HOA in Davenport?
- CDD assessments primarily repay public infrastructure bonds and related operations, while HOA dues fund private common‑area operations and covenant enforcement.
Where do I see CDD charges on Polk County bills?
- Check the non‑ad valorem section of your annual bill through the Property Appraiser and confirm details with the Tax Collector’s office.
Will my lender count CDD and HOA dues when qualifying me?
- Yes, lenders include mandatory assessments in debt‑to‑income calculations and may require escrow for larger assessments.
How long do CDD assessments typically last?
- Debt service assessments usually continue until the district’s bonds are repaid, while operations amounts can change based on annual budgets.
Can there be a one‑time charge at closing for a CDD?
- Some districts and developer agreements include “true‑up” or capital contributions due at closing, so request written confirmation early.
