CDD stands for Community Development District, which finances and manages community developments. Tax-Free Bonds are issued to the developer to finance the cost of building the infrastructure of a development, including roads, utilities, and amenities including, pools, cluhouses, tennis courts, and golf courses. The CDD fees appear on the property tax bill. CDD fees are common. If a development does not have a CDD fee, the homeowners are still paying the fees, but through some other means, such as a higher price for the land or other developer charge. Since CDD fees are common, I don't think they make houses less desirable for resale.
Taxation without Representation ?
An Opinion by Jan Bergemann
More and more new communities in Florida are part of a Community Development District. Especially many politicians praise the advantages, while many knowledgeable homeowners consider it building more dictatorships in the "Land of the Free"!
If you're not familiar with Community Development Districts, here is a good definition:
CDDs (Community Development Districts) are special purpose taxing and development districts created in 1980 through passage of Florida State Statue # 190. The purpose of this Chapter 190 law was and is to promote housing development through use of tax-free bonds that developers use to lower the initial cost of these residential communities. Developers issue bonds to pay for initial infrastructure (sewers, roads, water supply, grading, utilities, etc.). Bonds are eventually paid off by residents over periods of 10-30 years.
The main advantage of CDDs is that housing is initially less expensive since major development costs are deferred and are financed through the use of tax-free bonds. This leads to the main disadvantage that housing costs are inflated over time as the bonds need to be repaid.
Developers like the Chapter 190 law because they are able to offer housing at a lower initial cost than would otherwise be the case.
County governments like the Chapter 190 law because developments that might otherwise not be built are in fact built because of the tax incentives and pricing advantages. Property tax revenues are eventually higher than would otherwise be the case since the developments are, in fact, built.
Residents like the Chapter 190 law because the initial buy-in cost of the housing is often lower than otherwise would be the case because the initial infrastructure costs are deferred and the houses cost less.
Unfortunately, developers have perverted the concept of the Chapter 190 law and turned it to their advantage at the expense of the residents.
Paying Double ?
Please take a closer look into what Community Development Districts really are : a place where homeowners pay more than once for the goodies coming with their "Dream Home"! When you, as a prospective buyer, are shown your new community, you will be shown all the nice amenities coming with your home : golf course, swimming-pools, club houses, tennis courts, shopping malls an