Ever wonder why two similar homes in Plant City can have very different monthly costs? The answer often comes down to CDD and HOA fees. If you are comparing neighborhoods across Hillsborough County, understanding how these work will help you avoid surprises at closing and after you move in. In this guide, you will learn what CDDs and HOAs do, how fees show up on your tax bill, what to request before you make an offer, and the red flags to watch. Let’s dive in.
CDD vs. HOA at a glance
A Community Development District (CDD) is a public special-purpose government created under Florida Statutes, Chapter 190. A CDD plans, finances, builds, and maintains community infrastructure like roads, stormwater systems, and amenities. A Board of Supervisors oversees the district, and in early phases the developer often controls the board until residents take over.
A Homeowners Association (HOA) is a private nonprofit under Florida Statutes, Chapter 720, created by recorded covenants and rules. The HOA enforces community standards and maintains common areas such as pools, landscaping, and gates. A homeowner-elected board manages budgets, dues, and rules after developer turnover.
Key differences you will notice:
- CDD = public district; HOA = private association.
- CDDs commonly fund major infrastructure using long-term bonds. HOAs fund ongoing operations and smaller capital projects through dues and reserves.
- Many CDD assessments appear on your Hillsborough County property tax bill as non-ad valorem line items. HOA dues are usually billed directly by the association or its manager.
How fees work in Plant City communities
CDD assessments
- Bond debt service: Pays back principal and interest on bonds used to build community infrastructure. Assessed annually and often collected on your county tax bill as a non-ad valorem assessment. The term typically runs 10 to 30 or more years, and you pay the remaining term when you buy.
- Operations and maintenance (O&M): Covers ongoing upkeep for CDD-owned amenities, landscaping, and water management. Billed annually or more frequently. May be on the tax bill or invoiced by the district.
- Special assessments: Used for unexpected capital needs or large repairs not covered by the budget or reserves.
HOA fees
- Regular dues: Monthly, quarterly, or annual charges that fund common-area maintenance, insurance, management, utilities for common areas, and reserves.
- Special assessments: Levied for big projects when reserves fall short.
- One-time transfer costs: Items like estoppel, capital contribution, or transfer fees, as permitted by the governing documents.
What you might pay (illustrative only)
If a home’s CDD O&M is 1,200 dollars per year and its bond debt service is 1,800 dollars per year, the total CDD assessment is 3,000 dollars per year, or about 250 dollars per month. If the HOA dues are 200 dollars per month, your combined community assessments are about 450 dollars per month. Actual figures vary by community and property type, so verify for each address you consider.
Where fees show up on bills and at closing
In Hillsborough County, many CDD assessments appear on your property tax statement as separate non-ad valorem line items. These are not the same as ad valorem property taxes, but they are collected through the tax bill if structured that way. Some districts invoice directly instead.
HOA dues are usually billed by the association or its management company, not on the tax bill. Before closing, you should obtain estoppel letters from the HOA and fee confirmation from the CDD. These show balances due, upcoming special assessments, and any transfer or processing fees. Ask your lender how CDD assessments will be handled in escrow and how dues factor into loan qualification.
What to request before you write an offer
For the CDD
- Most recent annual budget and current assessment schedule
- Meeting minutes or financial statements for the last 1 to 2 years
- The bond official statement or engineer’s report showing the funding plan and how assessments are allocated
- An estoppel or payoff statement confirming the current year’s assessment, any outstanding balances, and whether billing is on the tax bill or direct
- A status update on whether CDD-funded improvements are complete and who maintains them
For the HOA
- Current budget, last fiscal-year financials, and a reserve study if available
- Governing documents, including CC&Rs, bylaws, and rules
- Meeting minutes and notices for the last 6 to 12 months
- An estoppel or resale certificate listing dues, any special assessments, transfer fees, pending litigation, violations, and the effective date
- Summary of insurance coverage for the master policy
County and title checks
- Hillsborough County property tax records to identify any non-ad valorem assessments
- Recorded plats and deeds to confirm who maintains roads and common areas
- Recorded CDD formation documents and bond instruments via the Clerk of Court or Recorder
How to read key line items
CDD debt service on the tax bill
This is your annual share of the bond repayment. The CDD budget or bond documents show the schedule for your property type. Expect the assessment to follow the bond amortization until maturity.
O&M or other CDD assessment
These are the annual costs to run and maintain CDD assets. Divide the yearly amount by 12 to fit it into your monthly budget.
HOA estoppel letter
This confirms the dues amount, how and when to pay, and any balances, fines, or special assessments. Check both the “seller owes” and “buyer will owe” sections. Note the letter’s effective date because it may expire after a short period.
HOA reserve funding
Look for a reserve line in the budget or a reserve study. Thin reserves raise the risk of future special assessments.
Risks, enforcement, and red flags
What happens if you do not pay
CDDs have statutory lien and foreclosure powers for unpaid assessments under Chapter 190. HOAs can record liens, levy fines, and foreclose for unpaid assessments under Chapter 720. Lien priority can vary, so consult your title company or attorney during due diligence.
Red flags to watch
- Large or recent special assessments, or hints of new ones in meeting minutes
- Developer-controlled boards without a clear plan for turnover
- Low HOA reserves or repeated special assessments to cover shortfalls
- CDD bond debt with many years left and signs of future increases
- Pending litigation involving the HOA or CDD
- Unclear maintenance responsibility for roads, stormwater, or utilities
- O&M or dues that have jumped quickly across multiple years
Plant City buyer checklist
Use this before touring and again during your contract period:
- Ask if the property is in a CDD and an HOA, and request current budgets and assessment schedules.
- Review the Hillsborough County tax bill for non-ad valorem assessments.
- Order the HOA estoppel or resale certificate and confirm any CDD payoff or assessment details.
- Review the HOA budget and reserves, plus minutes for the last 6 to 12 months.
- Review the CDD budget and bond schedule for remaining term and upcoming projects.
- Confirm who maintains roads, landscaping, stormwater, and amenities.
- Add CDD debt service + CDD O&M + HOA dues to your monthly housing budget before making an offer.
Local resources to check
- Hillsborough County Property Appraiser for parcel and assessment details
- Hillsborough County Tax Collector for how non-ad valorem assessments appear on tax bills
- Hillsborough County Clerk of Court or Recorder for CC&Rs, plats, CDD formation documents, and bond records
- Hillsborough County Community Development or Planning for plats and infrastructure maintenance information
- The local CDD manager or consultant for budgets and meeting minutes
- The HOA manager or board for governing documents, budgets, reserves, and estoppels
Budgeting tips you can use today
- Convert every annual assessment into a monthly figure so you can compare neighborhoods apples to apples.
- Ask your lender how CDD assessments factor into escrow and qualification.
- Plan a small buffer for future increases in O&M or HOA dues based on the last few years of budgets.
Ready to zero in on the right Plant City neighborhood for your budget and lifestyle? Let’s make a plan you can feel good about. Reach out to Jenni Thompson for local guidance and a smooth, low-stress purchase.
FAQs
What is a CDD in Florida and why does it exist?
- A CDD is a public special-purpose district created under Chapter 190 to finance, build, and maintain community infrastructure and amenities through assessments on properties within the district.
Do CDD fees show on Hillsborough County tax bills?
- Many CDD assessments appear as separate non-ad valorem line items on the county property tax statement, though some districts may invoice directly instead.
How are HOA dues billed in Plant City communities?
- HOA dues are typically billed by the association or its management company and do not appear on the county property tax bill.
How long do CDD assessments usually last on a home?
- The debt service portion generally follows the bond term, often 10 to 30 or more years, while O&M assessments continue annually to fund ongoing maintenance.
What documents should I review before making an offer on a CDD/HOA home?
- Request the CDD and HOA budgets, estoppel or payoff letters, meeting minutes, governing documents, and check county tax records for non-ad valorem assessments.
Who maintains the roads and stormwater systems in my neighborhood?
- Maintenance can be handled by the county, the CDD, or the HOA. Confirm responsibility by reviewing recorded plats, governing documents, and county records.
What are common red flags in CDDs or HOAs?
- Recent or frequent special assessments, low reserves, developer-controlled boards without a turnover timeline, pending litigation, and fast-rising dues or O&M assessments are all warning signs to investigate.
