What are CDD and HOA fees?

Homeowners in most master-planned communities usually pay one or both of these common types of residential fees in addition to monthly mortgage payments and living expenses.

It’s a good idea to know about them before you begin the search for your new custom Florida home. You can set your purchase parameters, plan ahead for CDD and HOA costs, and be ready to include them in monthly, quarterly and annual budgets once you became an ICI Homes customer.

Most of all, the advance knowledge spares you the headache of surprise expenses. Read on to learn how CDD and HOA fees differ and what they cover.

What are CDD and HOA fees? - Community Development DistrictCDD

CDD is the acronym for community development district. A CDD is a governmental provision (Chapter 190 of Florida Statutes) that provides revenue to maintain infrastructure, public areas such as parks and green spaces, and other facilities in a designated local community development district.

CDDs also fuel planning for future residential and retail development within a larger master-planned community. It’s important because along with residents of the larger community, the public at large also uses the streets, restaurants and many other areas in the municipal area where a CDD is located — a county or city, for example.

You’ll more likely pay CDD fees if you chose a neighborhood that’s part of a larger master-planned community. In this scenario, you’ll enjoy not only your particular neighborhood’s resident amenities, but also bigger community-wide amenities such as shopping, dining and entertainment enclaves, hiking trails through conservation areas, and personal watercraft launch areas on one of Florida’s Intracoastal Waterways, for example.

A CDD fee typically is paid as an annual addition to your overall property tax bill rather than a fee you pay monthly or quarterly like HOA fees.

Which brings us to…


HOA is the acronym for homeowners association. HOA fees fund the maintenance of a neighborhood’s resident amenities and are typically paid monthly, quarterly or annually.

Like CDD fees, HOA fees fund many expenditures. If the ICI Homes community of your choice has resident amenities such as clubhouses, swimming pools, fitness centers, playgrounds, walking paths and so on, HOA fees pay for their upkeep.

HOA fees also can pay for landscaping maintenance, infrastructure repairs (that pothole in the clubhouse parking lot) and consulting fees for architects, depending on your neighborhood’s needs.

How to find out about CDD and HOA fees

Of course you need a homeowners association before you can have HOA fees, and a community development district before you can have CDD fees. To find out if your ICI Homes community of choice has one or both, ask your sales associate for that information when you do your research.

The potential fee costs for the community you choose will depend on many factors, so be sure to add that question to your list. There’s no such thing as too much preparation!

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