Buyer to Assume CDD Community Development District
A Community Development District (CDD) is a local, special purpose government authorized by Chapter 190 of the Florida Statutes as amended and is an alternative method for managing and financing infrastructure required to support community development. Real Estate in Lee County, which includes the cities of Bonita Springs, Estero and Fort Myers may be subject to a CDD.
CDD's (Community Development District) possess several powers as a legal entity, such as the right to enter into contracts; the right to own both real and personal property; adopt by-laws, rules and regulations and orders; to sue and be sued; to obtain funds by borrowing; to issue bonds and levy assessments. CDD's provide a mechanism for the financing and management of new communities, which is consistent with the local governments' development procedures and regulations. They represent a major advancement in Florida's effort to manage its growth effectively and efficiently.
The community development district may impose and levy taxes or assessments, or both taxes and assessments, on the property.
These community development district taxes and assessments pay the construction, operation and maintenance costs of certain public facilities and services of the district and are set annually by the governing board of the district. These taxes and assessments are in addition to county and other local governmental taxes and assessments and all other taxes and assessment provided for by law. CDD's – Community Development Districts are fairly common in the Bonita Springs and Estero Florida areas.
Q. Can I pay off my CDD assessment?
A. Yes, you can pay off the capital assessment on your property at any time, but not the O & M assessment
Q. What time period does the assessment cover?
A. CDD assessments are collected in advance.
Q. I paid off my CDD so why do I still have an assessment on my real estate tax bill?
A. The property continues to be subject to annual operating and maintenance (O & M) assessments for the maintenance of common improvements that the CDD provides. This assessment is subject to change annually with the adopted budget.
Q. What does the O & M pay for?
A. The O & M (operating and maintenance) assessment is an annual assessment for maintenance for common improvements within your community that the CDD provides. The services vary depending on which community you live in. For example, it may cover landscaping, street lights, guard facilities, roving patrol, storm water management, etc., or it may only include a few of the services listed above.
To perform a data search or to find information regarding a CDD in your neighborhood visit: http://www.cddflorida.com/
Communities that have CDD's include: Spring Run at The Brooks, Pelican Landing, Village Walk of Bonita Springs and Copperleaf.