HOA, CDD, and Community Fees in New Construction

HOA and CDD Costs Are Different Systems

An HOA is a private association. A CDD is a special-purpose local government. A property may have either, both, or neither.

Do not combine every charge into one “community fee.” Each system has its own records, collection method, and change risk.

Build a Complete Fee Map

Start with the builder’s fee sheet. Then verify each item in the records that control the charge.

• Write each recurring charge on its own line.
• Write each one-time charge on its own line.
• Identify who receives each payment.
• Record when each payment is due.
• Mark whether the amount is confirmed or estimated.
• Note where the charge appears at closing or after closing.

Understand HOA Dues

HOA dues may support common areas, management, insurance, reserves, utilities, gates, pools, or clubhouses.

• Billing. Is the charge monthly, quarterly, or annual?
• Services. What is included? What is not included?
• Reserves. Are reserves funded through the regular dues?
• Control. Does the developer still control the association?
• Changes. Is an increase approved? Is a special assessment approved?

Understand CDD Taxes and Assessments

• Confirm the district’s exact legal name.
• Separate operating assessments from debt assessments.
• Find the collection method.
• Check the remaining bond term when applicable.
• Review the official district website and public records.
• Confirm whether the charge appears on the tax bill.

Identify One-Time and Closing Charges

A fee label does not explain the full cost. Ask what the charge covers, who receives it, and when it is due.

• Application fee
• Initiation or capital contribution
• Transfer fee
• Working-capital contribution
• Mailbox or access-device charge
• Amenity setup fee
• Utility connection fee
• Other community-specific charge

Find Where Each Charge Appears

Different charges may appear in different places. One document rarely shows the complete picture.

• HOA statement or association account
• Property-tax bill
• Closing Disclosure
• Separate closing statement
• Builder fee sheet
• CDD assessment record

Give the Full Cost to the Lender and Your Budget

HOA dues are usually paid outside the mortgage payment. They still belong in the total housing budget.

Give the lender the current HOA dues, CDD assessments, and known community charges early.

• Qualification. Does this charge affect approval? How is it counted?
• Cash to close. What is due before closing? What is due at closing?
• Reserves. Does the lender require extra funds?
• Monthly cost. What is inside the payment? What is paid on its own?

Review the Governing and District Records

Request the records that explain the charge. Do not rely on a verbal summary.

• Declaration, articles, bylaws, and rules
• Current HOA budget and financial reports
• Reserve information and current fee schedule
• Meeting minutes when available
• CDD establishment and disclosure records
• District budget and assessment methodology
• Bond information and official district website
• Estoppel or account information when appropriate

Ask What Can Change After Closing

Current dues and assessments are a snapshot. They are not a promise about future costs.

• Can the budget increase?
• Can services change?
• Can a special assessment be approved?
• Can a developer subsidy end?
• When may board control change?
• What schedule applies to district debt?

Professional Questions to Ask

• Builder. Which charges are estimates? Which are builder-paid? Which are buyer-paid? Which repeat?
• HOA. What are the dues? What services are included? Are reserves funded? Are assessments approved?
• CDD manager. What is the operating charge? What is the debt charge? How are they collected? Where are bond records?
• Lender. How do charges affect approval? Do reserves change? Does cash to close change? What is the full monthly cost?
• Closing professional. What appears at closing? What is prorated? What is paid later?
• County office. Where do district assessments appear for this parcel?
• Florida attorney. What does the contract say? What does the disclosure say? What rights end at closing?

A Calm Community-Fee Checklist

• Identify whether the property has an HOA, a CDD, both, or neither.
• Record every recurring and one-time charge separately.
• Verify who receives each payment.
• Review the HOA budget, rules, reserves, and fee schedule.
• Review the CDD budget, assessments, bonds, and official records.
• Ask whether temporary rates or developer subsidies may end.
• Give every recurring charge to the lender.
• Compare the full housing cost with a healthy life budget.
• Confirm closing charges and prorations.
• Ask the correct professional about unresolved questions.