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Old 11-24-2007, 07:56 PM
 
Location: northeast fla
25 posts, read 59,610 times
Reputation: 29
Question CCD fees in St Johns Co communities

Can anyone give me some info on these "CCD" fees I'm hearing about, that are supposedly charged to homeowners yearly, to pay for the roads, water lines, streetlights, etc, that the developers put in when they create the community? For how long does the homeowner have to pay these fees?
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Old 11-24-2007, 08:04 PM
 
Location: Jax
8,204 posts, read 23,280,610 times
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Quote:
Originally Posted by mvaluri View Post
For how long does the homeowner have to pay these fees?
Indefinitely/forever. Sometimes you'll hear a time frame of "30 years" or something like that, but in reality, there will always be something that needs updating, improving, etc., so there will always be a "reason" to collect the fees.
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Old 11-25-2007, 04:41 PM
 
44 posts, read 104,414 times
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That is true, which is why we chose one of the communities without a CDD fee when we moved to St Johns County 2 months ago. We do have a HOA fee, which could go up, but in my opinion it's much less of an unknown factor than the CDD fees.
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Old 11-25-2007, 05:15 PM
 
95 posts, read 275,716 times
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Stay away from any community that has CDD fees. Mine is for 34 years, but I will have died or sold my home before then. These fees are added to the homeowners property tax bill. MyCDD fee is around 2000.00. Property tax is 7800.00 so you can see I have a rather large tax obligation. I also have an HOA fee. My biggest problem with CDD's is the Board. They make all the decisions on how the money is spent. This is a nightmare when they have their own agenda's, not to mention a "blank check". If they run out of money they just increase the fees. Kinda like the government. I am in the process of looking for another house but not in a CDD community. If you are considering moving to one of these areas, I suggest you run not walk away from of these communties. This is just my opinion, some people really like these communities, but I am totally against them.
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Old 11-25-2007, 09:30 PM
 
Location: Jacksonville, FL
6 posts, read 25,536 times
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Default Cdd Communities

Here's a link that I use. Don't know how updated it is, but it gives me an idea.

CDD Communities (http://www.jaxrealestatestore.com/CDDCommunities.htm - broken link)
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Old 11-26-2007, 10:03 AM
 
Location: NE Florida
1,650 posts, read 2,876,792 times
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My advice would be to research any CDD development upfront. Get a feel for the community. That means checking out the range and quality of the amenities: the landscaping, lighting, clubhouse, fitness center, pools, picnic areas, pond and lake maintenance, trails, tennis courts, golf, adult playgrounds, organized activities for the kids, etc., etc. Visit the community, talk to people who have lived in the community for a while - not just the realtor. Are these homeowners satisfied with the standard of maintenance and their amenities? Is it upscale enough for what they are paying? It is only then that you can make an educated decision as to whether or not it is worth it for you to live in that community and pay those annual fees. But in general, CDD is not the scam that some people will have you believe. And in spite of what they tell you, it is not only about roads and infrastructure. And in our case, nothing to do with building schools.

I live in a CDD community. Sure, I wish it were all free. I also wish that my property tax was zero. But I gotta be realistic, I know it aint never gonna happen. And I have been into alot of communities in St. Johns county, all very nice, and I can see that there is a definite correlation between the amenities in these communities and the fees that homeowners pay. There are not too many new developments in St. Johns county that don't carry CDDs and although they might claim otherwise, their amenities are not going to be at the same level as the CDD developments.

Now, I am not saying that CDD is the ideal arrangement. In fact it sucks that homeowners in alot of cases don't sit on these CDD boards. I know that the fees generate some profit. The other thing that sucks is that these fees (like everything else) will go up. But what else is new?

You can always buy into an older established community where there are no fees to pay and where you create your own amenities. But, believe me, I learned a long time ago that there is no such thing as a free lunch.
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Old 11-26-2007, 10:40 AM
 
156 posts, read 483,984 times
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Talking Cdd

I totally agree! There are many communities to choose from, you just have to be educated and make the best decision for your family. Many times, the homes in the CDD communities are less expensive than the ones without, and for us, the same size home, was over $100K more in the non CDD community, while the difference in monthly fees was only about $80, because even though the other community has no CDD fees, they still have HOA fees which can get high too. Anyway, we chose the community with the CDD, and we use their amenities many times a week, so we don't mind paying the money. Again, it's all what is right for you. Most communities have either CDD or HOA, so you will pay either way. Good luck, it's a wonderful area!!!
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Old 11-26-2007, 10:50 AM
 
Location: JAX
227 posts, read 654,191 times
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These fees are actually created by the original bond that is used to pay for the development's infrastructure. They are essentially the fees used to pay for the loan that the developer took out to prepare the property before homes were built. Much like a 30 year mortgage, they are no longer assessed when the bond has been retired. These items are typically payed for by the developer through lot sales. But, some developers increase the yield on the development by passing them on to the buyers. These fees are also pegged to the property and stay with the home any time it is sold.

Simple Example: There is a development that is going to have 100 single family home lots. For this, there will need to be $10M in infrastructure. A $10M bond is taken out by the developer which will mature into $20M after 40
years. $20M / 100 lots / 40 years = $5k a year in CDD fees per lot for 40 years and $0 a year after that.

The fees are not really a developer "scam" but more of a way to increase the yield on an investment. The buyer thinks that the home is, for example, $40,000 less than what it would be at a similar subdivision and is lured in by the lower price. The $40,000 is then payed for by the CDD fee. Or, as in the case of the last five years, there is a frenzy to buy homes and the developer keeps the $40,000 and passes it on to it's shareholders as increased dividends.
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Old 11-26-2007, 11:39 AM
 
859 posts, read 2,410,874 times
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I suppose one of the minor advantage of CCD fee is that it's tax deductible like your property tax. Some monthly HOA fee can add up to the same amount as CCD fee and it's not tax deductible. But with the CCD fee...you feel like you 'own' part of the community and hopefully be active about it. Like, that patch of dead grass should be replaced, call management and complaint about the grass you partially paid for.
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Old 11-26-2007, 12:08 PM
 
Location: Jax
8,204 posts, read 23,280,610 times
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Quote:
Originally Posted by travelingfood View Post
I suppose one of the minor advantage of CCD fee is that it's tax deductible like your property tax. Some monthly HOA fee can add up to the same amount as CCD fee and it's not tax deductible. But with the CCD fee...you feel like you 'own' part of the community and hopefully be active about it. Like, that patch of dead grass should be replaced, call management and complaint about the grass you partially paid for.
With the HOA-only communities, you have the ownership-thing too. Like it or not, you are a "member", so you might as well take part. So it's kind of the same thing, if the fountain lights are out, for example, you make a call and the Board gets it fixed.

Usually with the HOA-only ones, the cost is low because the amenities are limited. I'm in an HOA-only and we don't have a pool, for example, but we do have a tot-lot, lakes, athletic field and some other stuff. Once a pool is in the picture, maintainance starts to get expensive.

I guess some HOA-only developments can charge more, but all the ones I looked at (and ended up in one) were anywhere from $200-$400/yr.
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