What is a CDD? I am asked that question many times from buyers that are new to Naples, FL. CDD stands for Community Development District. CDD responsibilities may include sewer and wastewater management, storm water management, potable and irrigation water supply, security services, roads, street lights, bridges, landscaping, park and recreational facilities. The CDD is a loan used to build the infrastructure of the community and is billed annually on your property tax bill. The Debt Service Fee is used to pay off the loan for the initial infrastructure for the development. The O & M or operation and maintenance fee is the fee for ongoing maintenance of the development such as maintaining lakes, fountains, landscaping and roads. This consistent and quality-controlled method of management helps to protect the long term property values in a community.
Residents of a Community Development District know that the standards of the community will be maintained long after the developer is gone. The CDD provides perpetual maintenance of communtiy infrastructure.
A very helpful company that I use for CDD pay offs is AJC Associates, Inc. Click HERE to check it out!
AJC Associates, Inc. is a real estate consulting firm serving community development districts in Southwest Florida. This is from their description:
- A Community Development District (CDD) is a local, special purpose government authorized by Chapter 190 of the Florida Statutes as amended and is an alternative method for managing and financing infrastructure required to support community development. CDD’s possess several powers as a legal entity, such as the right to enter into contracts; the right to own both real and personal property; adopt by-laws, rules and regulations and orders; to sue and be sued; to obtain funds by borrowing; to issue bonds and levy assessments.
- CDD’s provide a mechanism for the financing and management of new communities, which is consistent with the local governments’ development procedures and regulations. They represent a major advancement in Florida’s effort to manage its growth effectively and efficiently.
- The community development district may impose and levy taxes or assessments, or both taxes and assessments, on the property.
- These taxes and assessments pay the construction, operation and maintenance costs of certain public facilities and services of the district and are set annually by the governing board of the district.
- These taxes and assessments are in addition to county and other local governmental taxes and assessments and all other taxes and assessment provided for by law.
Tiburon is a beautiful community in Naples. It is a Community Development District. The CDD responsibilities include maintaining the beautiful fountains and landscaping throughout Tiburon.