Clients often ask me ‘what is a CDD or a PUD’? A CDD is a Community Development District and something that you often find here in Florida. It is an independent special purpose unit of the local government that the land developer established. This is a method to provide financing for infrastructure development – things like roads, water & sewer, parks, clubhouse & pool facilities. The CDD uses bond money for building the community infrastructure and that bond money must be paid back. That is accomplished by monthly payments from each homeowner within the CDD community.

Many PUDs in Florida have been designated as CDDs. PUDs are Planned Unit Development communities. A PUD allows the developer to meet community density and land use goals without restrictions of existing zoning requirements. A PUD is also planned and built as a complete unit. PUDs can provide more open space for development and lower costs for street and utility development. Together with bond money from CDDs, it is a combination that we are seeing more and more of here in Florida.

CDD fees are in addition to HOA fees. HOA fees cover the maintenance of the grounds and many other items. Each individual community decides what the HOA fees will cover and how high those fees will be. Some communities have only one or the other. Just having the HOA fees (Homeowner Association fees) is the most common but there are also many non-deed restricted communities that don’t have any of these fees. Before purchasing, it is best to ask your Realtor to go over what fees apply to the community you are purchasing into. That is just one more reason why it is so important to work with a Realtor when purchasing your home, townhome or condo here in Florida.