CDD vs. HOA Fees on the First Coast

Are you comparing homes around Jacksonville or Ponte Vedra and wondering why one listing shows a CDD line while another only lists an HOA? You are not alone. These fees look similar, yet they work very differently and can change your true monthly cost.

In this guide, you will learn what CDD and HOA fees are, how they are calculated and collected, what they fund in First Coast communities, and how to compare them when you shop. You will also get a practical checklist to use before you make an offer. Let’s dive in.

CDD vs. HOA: What they are

A Community Development District (CDD) is a special-purpose unit of local government created under Florida’s Chapter 190. A CDD finances, builds, and maintains community infrastructure and can issue bonds to fund major projects. The assessments are mandatory for properties inside the district and are tied to the land.

A Homeowners’ Association (HOA) is a private association formed under Florida’s Chapter 720 and the community’s governing documents. The HOA manages day-to-day operations, community standards, and certain common areas. Dues and any special assessments are required under the covenants and rules.

The key difference is authority. A CDD operates as a governmental special district that levies non-ad valorem assessments, often to repay public bonds and fund operations. An HOA is a private corporation governed by recorded covenants and its bylaws.

How fees are set and collected

CDD assessments

CDD charges are set each year to cover two pieces:

• Debt service on bonds that paid for infrastructure and major amenities.
• Operations and maintenance (O&M) for CDD-owned assets.

The district engineer and finance team help allocate the total across parcels, often based on land use or unit type. Early in development, the schedule is defined by the bond documents. Once bonds are issued, the repayment timeline is set until the bonds are retired.

HOA dues

HOA dues come from the association’s operating budget and reserve funding plan. The board sets amounts, subject to the community’s rules. Special assessments can be approved when reserves are not enough for capital projects or repairs. Chapter 720 and the governing documents outline procedures and voting.

Where they show up on your bills

• CDD assessments commonly appear as a non-ad valorem line on your county property tax bill. If so, your lender will usually escrow the payment with taxes. In some districts, the CDD may bill you directly instead of using the tax roll.
• HOA dues are paid directly to the association or its management company. These do not appear on your tax bill and are separate from escrow.

At closing, you may see proration of both. For HOAs, you should receive an estoppel or resale certificate showing current dues, any unpaid balances, fees, and known upcoming special assessments. For CDDs, the assessment obligation is a lien that runs with the land and will be disclosed on the tax roll or through district documents.

If you fall behind

Both entities have enforcement tools. Unpaid CDD assessments can become liens and may be collected through foreclosure. HOAs can record liens, levy fines, suspend privileges, and foreclose under Chapter 720, subject to the governing documents.

What each one funds on the First Coast

Typical CDD-funded items

CDD assessments often fund big-ticket infrastructure and shared amenities, such as:

• Roads and entry features within the district, plus street lighting.
• Stormwater systems and ponds, including maintenance and operations.
• Water, sewer, or reclaimed water systems where installed by the district.
• Parks, trails, sidewalks, and common area landscaping.
• Large amenity centers like clubhouses, resort-style pools, fitness facilities, and courts.

These assets are public within the district’s legal framework but are not maintained by the county. That is why CDDs continue charging O&M after construction.

Typical HOA-funded items

HOAs usually cover ongoing operations and governance, including:

• Common-area landscaping, routine maintenance, and pool upkeep.
• Insurance, utilities for shared facilities, management fees, and admin costs.
• Reserves for future repairs to HOA-owned assets.
• Covenants enforcement, architectural review, and community events.

In many First Coast master plans, the CDD owns and maintains major amenities while the HOA manages rules, some maintenance zones, or amenity staffing. Always review the community’s documents to see who owns what and who pays for which services.

Local pattern: Duval and St. Johns

Across Ponte Vedra, Nocatee-area neighborhoods, and northeast Jacksonville, you often see both a CDD and an HOA. The CDD typically financed the big infrastructure up front with bonds and continues to operate and maintain those assets. The HOA sets community standards, manages day-to-day operations, and funds items not handled by the district. Your total carrying cost is the sum of both.

How these fees affect affordability and resale

Your monthly payment and loan qualifying

Lenders include recurring HOA dues and CDD assessments when calculating your debt-to-income ratio. If the CDD is on the tax bill, it is part of your escrowed monthly payment. If the district bills directly, your lender still counts it as a recurring housing expense. Higher assessments can reduce how much home you qualify for.

Taxes, escrow, and deductibility

CDD assessments collected on your property tax bill are usually paid through escrow with taxes. Parts of a CDD assessment, such as the interest component on bond debt, may have different federal income tax treatment compared with standard HOA dues. Tax rules are complex and depend on what the assessment funds. Always consult a tax professional about your specific situation.

In general, HOA dues are not deductible as personal expenses, with limited exceptions like a qualifying home office or when the property is a rental subject to different rules.

Resale and marketability

Buyers compare total monthly carrying costs across communities. High CDD or HOA charges can narrow your buyer pool if they push the total payment higher than nearby options. Known special assessments or major upcoming projects should be explained clearly with documentation, reserves, and timelines.

Special assessments and increases

• CDD debt service is typically fixed by bond documents until maturity. The O&M portion can change as budgets change. Ask for the bond maturity schedule and remaining term.
• HOAs can levy special assessments when reserves fall short. Chapter 720 and the governing documents define required notice and voting for larger assessments.

How to compare communities step by step

Documents to request

• HOA: CC&Rs, bylaws, rules, recent board meeting minutes, current budget, most recent reserve study, and an estoppel or resale certificate showing dues, unpaid amounts, and any pending special assessments.
• CDD: The current budget, adopted assessment roll, and bond documents or a financial summary showing the annual debt service and remaining term. Confirm whether the assessment is on the county tax roll or billed directly.
• County: The property appraiser and tax collector pages for the parcel to see how non-ad valorem assessments appear on the tax bill.
• Lender and title: How the lender treats HOA and CDD for qualifying and escrow, and whether the title commitment shows any recorded liens.

Key questions to ask

• Are the assessments mandatory and how often are they billed?
• What do the fees cover versus what is the owner’s responsibility?
• Are there pending or recently approved special assessments? Are increases expected?
• Are there any current lawsuits involving the HOA or CDD?
• CDD specifics: Is there bond debt, what is the annual debt service per unit, and what is the remaining bond term? Tax bill collection or direct billing?
• HOA specifics: What is the reserve balance and when was the last reserve study? What are the rules on rentals, pets, and exterior modifications?

Red flags to watch

• Repeated special assessments or very low reserves.
• Pending litigation noted in minutes or public records.
• Rapid increases in CDD O&M or a long bond schedule that keeps assessments high.
• Unclear responsibility for roads, drainage, or amenities between the CDD, HOA, and county.

Quick monthly cost example

Here is a hypothetical calculation to show the method:

• Mortgage principal and interest: $1,600
• Property tax escrow: $300
• Home insurance escrow: $100
• HOA dues: $125 per month
• CDD assessment: $1,200 per year collected on the tax bill, which is $100 per month
• Total monthly housing cost: $2,225

This example shows how HOA and CDD charges can materially change your monthly payment and qualifying ratios.

Where to find accurate local numbers

• Duval County and St. Johns County property appraiser and tax collector websites. Review parcel records and tax bills for non-ad valorem assessments.
• Individual CDD websites and annual budgets. Look for adopted assessment rolls, meeting minutes, and bond documents.
• The HOA’s management company or association website for current dues, reserves information, and meeting minutes.
• Your title company or closing attorney for estoppels, payoffs, prorations, and recorded liens.
• Your lender or mortgage broker to understand how each charge affects qualifying and escrow.

For large master-planned communities in St. Johns County, including well-known Ponte Vedra and Nocatee-area neighborhoods, community websites often publish exact CDD assessments and HOA dues. Always verify the most recent budget and rolls for the specific address.

Bottom line for First Coast buyers

CDD and HOA charges do not need to be confusing. A CDD is a governmental district that funds major infrastructure and amenities, often through bonds and annual assessments. An HOA is a private association that manages operations, rules, and reserves. Both are common around the First Coast, often in the same community.

To choose wisely, add both fees to your total monthly cost, confirm whether the CDD appears on the tax bill, and review the bond schedule and HOA reserves. Ask for complete documents before you write an offer so there are no surprises later.

If you want a clear, apples-to-apples comparison for the neighborhoods on your shortlist, reach out. The right guidance can save time, stress, and money. Connect with Tonya O’Quinn for a personalized breakdown of CDD and HOA costs and how they affect your purchase.

FAQs

What is a CDD in Florida and how is it authorized?

• A CDD is a special-purpose local government created under Florida’s Chapter 190 to finance, build, and maintain infrastructure, with costs assessed to properties within the district.

Do CDD fees ever go away in Duval or St. Johns?

• The debt service portion typically ends when the bonds mature, while operations and maintenance can continue as long as the district maintains its assets.

How do lenders treat CDD and HOA fees when I qualify?

• Lenders include both in your debt-to-income ratio. If the CDD is on the tax bill, it is escrowed. If billed directly, it is still counted as a recurring housing expense.

Are CDD assessments or HOA dues tax deductible?

• Tax treatment depends on what the CDD assessment funds and your personal situation. HOA dues are generally not deductible for a primary residence. Consult a tax professional.

How can I see a home’s CDD and HOA obligations before I offer?

• Review the county tax bill for non-ad valorem assessments, request the CDD budget and assessment roll, and obtain the HOA estoppel showing dues, balances, and any pending special assessments.

Is a community with a CDD better than one with only an HOA?

• Neither is universally better. Compare total costs, bond schedules, what each entity funds, reserve health, and rules to find the best fit for your budget and plans.