Comparing two Auburndale communities and stuck on HOA vs CDD? You are not alone. These terms affect your monthly budget, rules, and even resale value. By the end of this guide, you will know the differences, how to verify fees in Polk County, and what to request before you buy. Let’s dive in.
HOA vs CDD basics in Polk County
What is an HOA?
A homeowners association is a private, nonprofit organization that maintains common areas and enforces community rules. In Florida, HOAs operate under Chapter 720 of the Florida Statutes. HOAs collect dues, can levy special assessments, and may place liens for nonpayment. A board of directors, often developer-controlled in early phases, governs the association.
What is a CDD?
A community development district is a special-purpose unit of local government created under Chapter 190 of the Florida Statutes. A CDD plans, finances, builds, and maintains infrastructure and amenities such as roads, stormwater systems, parks, and recreation facilities. CDDs can issue bonds, levy long-term assessments, and must hold public meetings with budgets and records available to the public.
Key differences that matter when you buy
Purpose and scope
- HOA: Private covenant enforcement, architectural review, common area upkeep, and amenity rules.
- CDD: Public infrastructure and amenity construction and operation funded by long-term assessments and bonds.
Governance and transparency
- HOA: Run by a member-elected board; records are obtained from the association or its manager.
- CDD: Run by a board of supervisors; meetings, budgets, and audits are public records with open meetings.
Financing and duration
- HOA: Budget funded by dues and occasional special assessments; dues may change annually.
- CDD: Uses bonds to fund infrastructure; assessments continue until bonds are repaid and for ongoing operations and maintenance.
How fees are charged and collected
- HOA dues: Usually billed monthly, quarterly, or annually by the association.
- CDD assessments: Typically billed annually, often as a separate line on the county tax bill or billed directly by the district.
Enforcement
- HOA: Can impose fines, liens, and in some cases foreclose for unpaid assessments under Chapter 720.
- CDD: Assessments are public charges that can become liens; nonpayment can be enforced similar to other government assessments.
Where the money goes
- HOA: Routine maintenance, staffing or management, insurance, amenities, and reserves.
- CDD: Bond debt service, district operations and maintenance, and capital projects.
How HOA and CDD fees hit your budget
Separate charges, one monthly number
Many master-planned communities in Central Florida have both an HOA and a CDD. That means two recurring charges. To compare homes apples to apples, convert any annual CDD assessment to a monthly amount and add it to the HOA dues. This gives you a true monthly carrying cost for that property.
A simple example: If HOA dues are $X per month and the CDD assessment is $Y per year, then the combined monthly cost is $X + ($Y ÷ 12). Use the most current statements for the exact parcel rather than generic numbers.
Impact on financing and resale
Lenders consider recurring assessments when they calculate your debt-to-income ratio. A large CDD assessment or a history of HOA special assessments can affect affordability. For resale, higher recurring charges or known upcoming assessments may narrow your buyer pool.
Due diligence checklist for Auburndale buyers
Before you make an offer
- Ask whether the property has an HOA, a CDD, or both. Request contact info for the association manager and the CDD district manager.
- Check Polk County records for CDD or assessment clues using the property appraiser’s parcel report and prior tax bills from the tax collector.
- Obtain HOA documents: Declaration and CC&Rs, bylaws, rules, recent budget, reserve study, meeting minutes from the last 12 months, fee schedule, insurance requirements, and an estoppel or payoff statement.
- Obtain CDD documents: Most recent budget, adopted assessment schedule, bond documents or official statement, recent meeting minutes, and an assessment roll showing the parcel’s amount.
- Ask the seller for recent statements showing paid HOA dues and CDD assessments.
During contract and inspection
- Order estoppel or written confirmations:
- HOA estoppel: shows current assessment status and any fines or fees.
- CDD verification: written confirmation of the parcel’s annual assessment and whether it appears on the tax bill.
- Confirm who pays any prorated HOA or CDD charges at closing and whether any special assessments or bonds must be assumed.
- Review HOA reserve studies and recent special assessments to gauge the risk of future charges.
- Include contingencies allowing cancellation based on unacceptable HOA or CDD findings.
- Notify your lender early so underwriting accounts for CDD assessments and required documents.
Before closing
- Check for pending litigation involving the HOA or the CDD in public minutes or clerk records.
- Confirm developer control status and any upcoming transitions that may shift costs or responsibilities.
- Review the most recent HOA financials and any available CDD audit.
How to confirm HOA and CDD in Auburndale
Local verification steps
- Polk County Property Appraiser: Look up the parcel record for special district references or improvement assessments.
- Polk County Tax Collector: Review prior tax bills to see if a CDD appears as a separate line item.
- Polk County Clerk or district records: Access public CDD budgets, minutes, and bond information. The district manager can direct you to current documents.
- City of Auburndale planning or building departments: For new developments, ask about planned infrastructure and whether a CDD is in place or proposed.
Who to contact for authoritative answers
- HOA: Association manager or board president for governing documents, budgets, and estoppel.
- CDD: District manager or administrator for budgets, assessments, and bond details.
- Title company or real estate attorney: For lien searches and confirmation of how assessments are collected.
Red flags and negotiation tips
Red flags to watch
- Low HOA reserves paired with frequent special assessments in recent meeting minutes.
- Large or rising CDD assessments, or high bonded debt per parcel.
- Ongoing developer control with limited homeowner oversight.
- Pending litigation disclosed in HOA minutes or public records.
- Difficulty obtaining current estoppel or clear CDD assessment amounts.
Negotiation levers
- Add contract contingencies that allow cancellation if HOA or CDD financials are not acceptable.
- Request a seller credit or price adjustment if you discover substantial unpaid charges or an imminent special assessment.
- Require the seller to pay outstanding HOA dues or certain special assessments at closing.
- If new information surfaces late, ask for extended due diligence or a re-negotiation window.
Choosing what fits your lifestyle and budget
If you value strict community standards and private amenities, an HOA may support that lifestyle. If you want newer infrastructure and amenity investments, a CDD is often how developers finance those features in Central Florida. Many Auburndale neighborhoods include both, so focus on the total monthly cost, the quality of maintenance, and the transparency of budgets. Use the documents and steps above to confirm the exact obligations for the parcel you are buying.
Ready to compare communities with confidence or need help obtaining the right documents? Reach out to Cheryl Bossarte for local guidance and a clear plan from offer to closing.
FAQs
What is the difference between an HOA and a CDD in Florida?
- An HOA is a private association that manages rules and common areas under Chapter 720, while a CDD is a public unit of local government under Chapter 190 that finances and maintains community infrastructure using long-term assessments.
Can a home in Auburndale have both HOA dues and a CDD?
- Yes, many master-planned communities in Polk County have both, and you should add the monthly HOA dues to the monthly equivalent of the annual CDD assessment to understand the true carrying cost.
How do I check if a property has a CDD assessment?
- Review the Polk County Property Appraiser’s parcel record and prior tax bills from the Polk County Tax Collector, and request written confirmation from the CDD district manager.
Where do CDD assessments usually appear?
- Many districts place the assessment as a separate line item on the county tax bill, though some bill owners directly; request written verification for the specific parcel.
Can HOAs or CDDs place a lien for nonpayment?
- HOAs can lien and may foreclose under Chapter 720, and CDD assessments are public charges that can become liens and be enforced like other government assessments.
Will a large CDD assessment affect my mortgage approval?
- Lenders consider recurring assessments in debt-to-income calculations, so higher annual CDD amounts can impact affordability and underwriting, which is why early documentation is important.
