[BNBR]

Originally Posted by countrykaren

Thanks everyone. Personally it sounds like a scam. I've seen nice communities in other states that do not have CDDs or HOAs. The ppl in those communities just take care of things themselves. Sounds like I will need to look around and make sure we don't end up in one. First of all we are not TV watchers and like someone else said in these posts, we would have to hook up to cable whether I wanted to or not?! Way too many rules for me. Maybe I'd rather have the rushes around the lake- more natural. Anyway- thanks for the education. To each his own.

It's not a scam, and actually the CDD tends to be more solvent than HOA's, since they collect via property tax and not relying on owners to pay their bills monthly. If the community is a CDD, good chance it has a guard gate, common grounds, maybe a pool, basketball and tennis courts, etc. Who do you think pays for that? As I was trying to explain and keep it simple, it's essentially similar to an HOA. You pay for it in your taxes and it covers the maintenance costs of the common areas and infrastructure. Including the roads, lakes, etc. Personally, I kind of like the CDD compared to the HOA I was in before. There is just less b.s. with it. Things get taken care of much better and with less drama than a bunch of HOA commandos.

Here is a good example of a newer CDD:

http://www.monterracdd.com/

Here is the 2017 proposed budget from same site:

http://www.monterracdd.com/documents...osedbudget.pdf

And their FAQ:

http://www.monterracdd.com/contact.htm


You will notice, on the budget, that the CDD basically runs like an HOA. But it runs, generally, much better than an HOA. The people who are suggesting it goes away after the debt is paid simply don't know what they are talking about. There are 2 portions to the CDD assessment - the DEBT and the Operating/Maintenance. The debt portion will go away. The debt portion is what was originally borrowed to build the community. The Operating/Maintenance portion is the ongoing cost of maintaining the property. Security, pressure washing, attorney, clubhouse, golf carts, irrigation, lakes, and the list goes on. Check out Page 6 on the proposed budget (actual page 8). It has the assessment rates. This is what would be added to your property tax bill if you live there. For most of the homes it's as low as $100/mo up to around $200/mo. This is without the debt portion. Scroll to page 24 on the PDF, at the bottom, and this is the assessment with the debt. You can even see the amortization schedule and debt info. The debt portion will go away, but the Operating/Maintenance is exactly what it sounds like and stays forever. It's basically the HOA but more governmental.

If you compare the 2 - you get the total assessment and you can also see what portion goes away. Exactly how much that will be. If we look at the "34'" homes, the Operating/Maintenance portion is $2216.31 per year. Or $184.69/mo (but it's paid yearly in property taxes). The debt, as you can see on page 24, adds $725.89 to the yearly assessment. That debt will go away, but not for a long time. So I would consider that as part of your "expenses" for as long as you would probably own the home. So a realistic "HOA equivalent" on this property would be $250/mo or $3k/year. Which isn't all that bad for a community like this.

It's not a scam, it's very similar to an HOA but with a lot less drama.

[kokonutty]

Question for those in the know: How are the bonds the CDD uses funded initially? Are they privately sourced through financial institutions or is there a state agency providing the funding?


With these CDDs adding an additional layer and source of operational funding for ongoing services that would normally be provided by a city or county, has there been much of a problem with corruption or misuse of funds by the CDD boardsor is it too soon to tell?

[bbronston]

I don't know the answer but I expect that the bonds issued by CDDs are sold on the primary and secondary markets just as other tax exempt bonds are sold. Good question, though.

I haven't heard of any misuse/corruption cases by district supervisors but, like any human endeavor, the potential is there. A couple months ago, I got into an online disagreement with a supervisor over a decision the board made where I thought they overstepped their authority or, maybe put another way, used public money for something that normally requires, by their own rules, private money. I thought it was a well-meaning but wrong decision that required some major mental gymnastics to find authority in the statute. But, I'm not an attorney so my opinion is only that. I'm sure things like that can and do happen.

I found a good link to a FAQ written by a law firm regarding CDDs. Might help some people:
http://hgslaw.com/wp-content/uploads...ns_re_CDDs.pdf

[countrykaren]

Sounds like a CDD is not for us. We don't want a gated community and guards- if I need a guard and gate I DON'T want to live there. I'll have a yard- don't need a common area. Don't swim- no pool needed. Don't play golf or tennis. No kids= no playground needed. etc. If we where 30- maybe- tho I doubt it. But at this stage; If I needed all that stuff I'd go into a senior condo.

[upgrader]

Originally Posted by countrykaren

Sounds like a CDD is not for us. Don't swim- no pool needed. No kids= no playground needed. etc. .

Um, er, I think you are moving from a cold weather place. I did that (many years ago). I couldn't live here without convenient access to a pool.

You have classic cars, want to work on them, well here you will sweat bullets. Not bad if you have a convenient pool to dive in.

Please give your move some thought. I'm sure I'm not the only one that has read your posts.

Thanks for sharing your thoughts, and I hope you don't mind that I've expressed my opinion.

[BNBR]

Originally Posted by countrykaren

Sounds like a CDD is not for us. We don't want a gated community and guards- if I need a guard and gate I DON'T want to live there. I'll have a yard- don't need a common area. Don't swim- no pool needed. Don't play golf or tennis. No kids= no playground needed. etc. If we where 30- maybe- tho I doubt it. But at this stage; If I needed all that stuff I'd go into a senior condo.

Based on what you are saying, I'd think a CDD is probably not for you. But that doesn't mean there aren't much cheaper CDD's with limited ammenities, but maybe some nice infrastructure that is maintained. In other words, I wouldn't immediately denounce them, but I think you would prefer a non-HOA/non-CDD community.

Everything you say sounds a lot like my parents and sister. They all live in Loxahatchee. Sister has a little mini-farm with horses... all hobby. Mom has a property with plenty of space for their fifth wheel. No hoa, basically no rules, just live and enjoy. Plus some nice space and big lots. You may want to check it out. Relatively inexpensive, too.

[bobandsherry]

Wow - what a lot of bad and misleading information in this one post. It should be brought behind the barn, shot and left for dead, never to be read again as it's certainly going to cause needless confusion and loads of bad information from being disseminated.

This may be of interest - What is a CDD. As noted in the details "To defray upfront expenses and offer homes at a lower cost, developers takeout bonds to fund these improvements.". It also mentions there are 600 Community Development Districts in Florida, 120 in the Tampa area - so these have become the norm. Other basic information that may be useful. Enjoy.

[BNBR]

Originally Posted by bobandsherry

Wow - what a lot of bad and misleading information in this one post. It should be brought behind the barn, shot and left for dead, never to be read again as it's certainly going to cause needless confusion and loads of bad information from being disseminated.

This may be of interest - What is a CDD. As noted in the details "To defray upfront expenses and offer homes at a lower cost, developers takeout bonds to fund these improvements.". It also mentions there are 600 Community Development Districts in Florida, 120 in the Tampa area - so these have become the norm. Other basic information that may be useful. Enjoy.

Hence the DISCUSSION. Some of us are well aware of what a CDD is and provided that information in this thread.

[bobandsherry]

Originally Posted by BNBR

Hence the DISCUSSION. Some of us are well aware of what a CDD is and provided that information in this thread.

The DISCUSSION has appeared to have ended with a lot of wrong information being shared. I was trying to INFORM so that there was closure around what a CDD is (and isn't) as overall I seem to find that many have a misinformed view of CDD's.

[d4g4m]

If anyone is being misinformed, it is a person who thinks a home builder is selling their home at a discount because it is in a CDD. Same base price if built on a no deed restriction, no H.O.A. lot or on a CDD lot. And actually, the house built in a Cdd will probably cost more because it gets loaded with high cost options like crown molding, granite counters and lots of tile floors.
And you are not getting any break on the cost of the lot in a CDD.