— Buying tools
HOA, CDD, and what they cost.
Florida master-planned communities use both HOA dues and CDD assessments — and they mean different things. Here's what each covers, the typical ranges in Tampa Bay and Central Florida, and the document red flags worth a closer look.
What HOA dues cover
Typical FL range: $50 – $1,500 / month
- Common-area maintenance. Landscaping at the entrance, mowing in common spaces, pool, gym, clubhouse, gates. The visible amenities.
- Insurance on shared structures. Pool building, gatehouse, clubhouse. NOT your individual home (which you insure separately).
- Reserves for capital projects. Repaving private roads, replacing roofs on shared buildings, refurbishing the pool. Underfunded reserves = future special assessments.
- Sometimes utilities + cable + internet. In some Tampa-area + Central FL communities the HOA bulk-purchases services. Lower your individual bills but raises the HOA dues.
- Management company. Most HOAs hire a third-party management company. Their fee is built into your dues.
What CDD assessments cover
Typical FL range: $1,000 – $3,000 / year (on tax bill)
- Roads + infrastructure. Initial paving, sidewalks, storm-water management, lighting, water and sewer trunk lines INSIDE the development. Funded by 30-year tax-exempt bonds at the formation of the district.
- Sometimes amenities. Pools, parks, clubhouses, fitness centers in newer Central FL communities (the Villages, Lakewood Ranch, parts of Wesley Chapel) are often CDD-funded rather than HOA-funded.
- Ongoing operations + maintenance. Annual O&M assessment that continues forever — even after the bond is paid off. The bond piece eventually drops off; the O&M piece does not.
- Recreational debt service. In luxury master-planned communities, additional bonds may have funded the clubhouse and amenities. Separate line on your property tax bill.
HOA vs. CDD — what's actually different
Who collects. HOA dues are collected by the homeowner association. CDD assessments are on your property tax bill (collected by the county tax collector and remitted to the district).
Tax-deductibility. CDD is generally treated as a property tax (deductible if you itemize, subject to SALT cap). HOA dues are not deductible for primary residence.
Foreclosure power. Both can foreclose for non-payment. CDD has stronger statutory powers — treated like property tax liens.
Lifespan. CDD bonds eventually pay off (typically 20-30 years from district formation). HOA dues continue indefinitely. CDD O&M assessments also continue indefinitely.
Red flags in HOA + CDD documents
Florida requires sellers to provide the HOA estoppel and CDD disclosure. Read both. Specifically watch for:
- Reserve study significantly under-funded (less than 70% funded is a yellow flag, less than 50% is a red flag — special assessments coming).
- Pending litigation against the HOA (developer disputes, contractor claims, structural defect cases).
- Recent special assessment or one explicitly planned (read the last 2 years of meeting minutes).
- Insurance claim history on common buildings (post-Surfside, Florida HOAs are getting hit on master policies).
- Self-managed without professional management on a community over 50 units (financial risk).
- Strict rental restrictions if you ever planned to rent (post-closing they're hard to change).
- CDD bond payoff date — confirm when each bond rolls off your tax bill, so you can project forward.
- Aging amenities that have not been refurbished in 15+ years (next big capital project coming).
The six documents to ALWAYS request
- Declaration of Covenants, Conditions, Restrictions (CC&Rs). The rule book. What you can and cannot do with your property — colors, fences, parking, rentals, pets.
- Articles + bylaws. How the HOA is governed — board structure, voting, meetings, special-assessment thresholds.
- Latest budget + reserve study. The numbers. Are they collecting enough? Are reserves where they should be? How is money being spent?
- Last 12 months of board meeting minutes. Reveals personality + pain points. Litigation, contractor problems, community drama.
- Recent insurance certificates. Confirms coverage on shared buildings + liability.
- CDD disclosure statement (if applicable). Florida law requires sellers to disclose CDD assessments. Get the breakdown: which bonds are paying off when.
“Buyers obsess over the listing photos and skim the HOA documents. It should be the other way around — the documents are what you actually live with for 10 years.”
— Ben Laube
Looking at a specific community?
Send me the address. I'll pull the HOA + CDD breakdown, read the recent meeting minutes, and flag anything worth a second look — before you write the offer.