CDD vs HOA Fees in Clay County: What’s the Difference?

Are you seeing both CDD and HOA fees on Clay County listings and wondering what they really mean? You are not alone. Many first-time buyers want clear answers about how these charges work, what they cover, and how they affect a monthly budget. In this guide, you will learn the key differences, where each fee shows up, and the right steps to confirm costs before you make an offer. Let’s dive in.

CDD vs HOA: quick overview

A Community Development District (CDD) is a special-purpose local government created under Florida Statutes, Chapter 190. It plans, finances, builds, operates, and maintains public infrastructure within a defined area. If a property sits inside a CDD, the assessment is mandatory.

A Homeowners’ Association (HOA) is a private membership organization formed by recorded covenants under Florida Statutes, Chapter 720. It enforces community rules, maintains HOA-owned common areas, and manages day-to-day operations. If a home is governed by the HOA’s covenants, dues are mandatory.

The core difference: a CDD is focused on financing and maintaining big-picture infrastructure and amenities, while an HOA manages rules, common areas, and routine community operations.

How CDDs work in Clay County

In many master-planned communities, developers use a CDD to fund major infrastructure. The CDD can issue bonds to pay for roads, stormwater systems, lakes, trails, utilities-related improvements, and large recreation facilities.

CDD assessments are non-ad valorem, which means they are not based on property value. They are typically billed on your county property tax statement and collected by the Clay County Tax Collector. Assessments can last for many years, often until bonds are repaid, and the CDD may continue to operate and maintain facilities over time.

How HOAs work in Clay County

HOAs handle community governance and upkeep of HOA-owned common areas. This includes enforcing covenants and architectural rules, managing entry gates or security if offered, maintaining community landscaping, and running pools or playgrounds.

HOA dues are billed by the association or its management company. Payment frequency varies by community, often monthly, quarterly, or annually. HOAs can levy special assessments for major projects or budget shortfalls, subject to their governing documents and state law.

What each fee pays for

• CDD typically funds: major infrastructure and amenities, long-term operations and maintenance of those systems, and large-scale landscaping or recreation complexes.
• HOA typically funds: common-area landscaping, pools and tot-lots managed by the HOA, gate or security services if provided, trash or recycling in some communities, management and administrative costs, and covenant enforcement.

Where you see the charges

• CDD assessments: Usually appear on your property tax bill as a non-ad valorem line item. Many buyers pay these through their mortgage escrow.
• HOA dues: Usually billed directly by the HOA or the management company. These payments may be monthly, quarterly, or annually, and you pay them separately unless your lender escrows them.

How fees affect your monthly budget

Both CDD and HOA charges are mandatory if they apply to the property. Lenders typically include them in your housing cost when reviewing your loan application, which can affect your debt-to-income ratio.

Example monthly math

Here is a simple way to compare:

• If an annual CDD assessment is $1,800, divide by 12 to estimate a $150 monthly equivalent.
• If HOA dues are $150 per month, your combined impact would be about $300 per month.

These numbers are examples. Actual amounts vary by community. Always verify the exact figures for the home you are considering.

Mortgage and taxes

Because CDD assessments usually appear on the tax bill, they are often escrowed by lenders and paid as part of your monthly mortgage payment. HOAs are commonly paid separately. Ask your lender how they will treat both so you can plan your cash flow.

CDDs and HOAs together

It is common for Clay County master-planned communities to have both a CDD and an HOA. The CDD covers big, shared infrastructure and large amenities, while the HOA oversees rules, design standards, and day-to-day upkeep. Combined, they can create a well-maintained environment, but you should weigh the total cost against your budget and lifestyle.

Due diligence checklist for buyers

Use this checklist before you go under contract or during your inspection period:

• Confirm CDD status

  • Review the property tax bill for a non-ad valorem CDD line item.
  • Ask for CDD disclosure documents and the most recent CDD budget.
  • Request CDD meeting minutes, annual financial reports, and any engineer’s reports.
  • Verify whether bonds are outstanding, how much remains, and the expected duration.

• Confirm HOA status and obligations

  • Request the HOA’s recorded covenants, bylaws, and rules.
  • Obtain an HOA estoppel letter showing current dues, any past-due amounts, and pending special assessments.
  • Review the HOA budget, reserve balances, recent financials, and board meeting minutes.
  • Confirm the management company contact, how often dues are billed, and late-fee policy.

• Lender and escrow details

  • Ask your lender how CDD and HOA assessments are treated for qualification.
  • Confirm whether the CDD will be escrowed or paid separately.

Red flags to watch

• Low HOA reserves with visible deferred maintenance.
• Recent or proposed special assessments in the HOA or CDD.
• Active litigation involving the HOA or CDD.
• High HOA delinquency rates.
• Use or rental restrictions that do not fit your plans.

The bottom line for Clay County buyers

CDDs and HOAs serve different roles. A CDD finances and maintains large infrastructure and amenities across a development, while an HOA handles rules, common areas, and daily operations. Both can add predictable value and costs to your homeownership experience.

Your best move is to confirm whether a property has one or both, read the budgets, and translate each charge into a monthly number. When you understand exactly what you are paying for, you can choose a community that fits your budget and lifestyle with confidence.

Ready to price a specific home’s CDD and HOA and build a clean monthly budget? Reach out to Taquilla Allen for local guidance and a step-by-step plan.

FAQs

What is a CDD in Florida real estate?

• A Community Development District is a special-purpose local government created under Florida Statutes, Chapter 190, to finance, build, and maintain public infrastructure within a development.

What does an HOA do in Clay County?

• An HOA enforces recorded covenants, maintains HOA-owned common areas and amenities, manages community rules, and collects dues under Florida Statutes, Chapter 720.

Where do CDD assessments appear on my bill?

• In Florida, most CDD assessments are non-ad valorem and show up on the county property tax bill, often paid through your mortgage escrow.

How do I compare CDD vs HOA costs monthly?

• Convert the annual CDD assessment to a monthly amount by dividing by 12, then add any monthly or quarterly HOA dues to estimate the combined impact.

Can CDD or HOA fees affect mortgage approval?

• Yes. Lenders include mandatory assessments in your housing expense, which can influence your debt-to-income ratio and loan qualification.

What is an HOA estoppel letter and why is it needed?

• An estoppel letter confirms the status of HOA dues and assessments for a specific property so buyers and lenders know the exact amounts owed at closing.

Can a CDD be removed or end on its own?

• A CDD can be dissolved only through legal processes or after obligations like bond repayment are satisfied. It does not end automatically.