If you start looking into buying a new or second home in a master-planned community in Florida, you're bound to encounter the term “Community Development District” (CDD) eventually. And you're bound to wonder what that means, especially if you're not from the state.

Without getting into the legal mumbo-jumbo, a CDD is basically a highly localized governing body created pursuant to Chapter 190 of the Florida Statutes. OK, that's legalese, sorry. Forming a CDD is an alternative to incorporating as a municipality. It oversees planning, financing, development, operation, and maintenance of its planned community to the benefit of both the developer and the residents.

Basic CDD Operations

A CDD is responsible for infrastructure, public spaces, recreational facilities, security, public lighting, public parking, public events, schools, fire management, water management, sewers, mosquito control, and other fundamental operations within its planned community. It is a legal entity that can enter into contracts, instate rules and bylaws, own property, borrow money and issue bonds, and impose assessments and taxes.

Every Community Development District is bound to official State financial disclosure and ethics regulations. It is managed by a six-member Board of Supervisors; five are elected by property owners in the district, and these members elect their Chair. All meetings and records are open to the public and budgets are independently audited yearly.

These governing bodies are funded by those who benefit from them. Landowners in the community pay in conjunction with their property taxes, and typically there's an annual amenities or service charge as part of the community contract. Costs vary by CDD and typically fluctuate from year to year.

Benefits of Community Development Districts

CDDs in Florida date back to 1980, when they were devised as a way to finance and efficiently manage rapidly booming development across the state. One of the key advantages for developers is that they don't have to fund infrastructure upfront. This also offers a major benefit to home buyers, who enjoy lower initial property prices thanks to deferred infrastructure costs, while property values reliably rise.

Residents, rather than developers, retain control over the services, facilities, and overall direction of their community as a CDD. They also have immediate access to maintenance, rather than going through a municipality, which often entails red tape and lengthy waits.

CDD 55+ Communities in Central Florida

There are more than 600 CDDs in Florida, the majority of which were founded in the mid-2000s. Several leading active-adult communities in Central Florida operate as a Community Development District. If you're interested in exploring these options, please click through for an overview and to see current home listings.

If you're interested in learning more about these communities in Central Florida, and about the local active-adult lifestyle in general we'd love to talk!

Contact a 55+ Community Expert