What's the difference between CDD and HOA fees, and which is better?

Two acronyms that look similar but mean entirely different things financially. Buyers who confuse them often regret it years into ownership, the cumulative cost differential can exceed $100,000 over a typical hold.

HOA (Homeowners Association)

• Pays for: landscaping, gate security, common-area maintenance, community pool, master insurance.
• Operates like a private club, members elect the board, board sets the budget.
• Typical range: $200–$800/month for new-construction Miami-area communities.
• Goes with the property, you can't opt out.

CDD (Community Development District)

• Pays for: bond debt that financed roads, water lines, sewer, drainage, parks BEFORE the community was built.
• Operates like a tiny government, has the power to levy property tax-like assessments.
• Typical range: $1,200–$3,500 per year on a single-family Miami-area home.
• Comes due as part of your annual property tax bill, feels invisible until you see it.

Why CDD matters more than buyers realize

1. 30-year cumulative cost: $36,000–$105,000 on a typical CDD community.
2. Doesn't reduce as bonds amortize until last year of bond (often year 25–30).
3. Treated as 'ad valorem' or 'non-ad valorem' depending on county, affects how it shows on tax bill.
4. Survives sale to next owner, buyer should ask about remaining bond years in due diligence.

Practical buyer checklist

• Ask the listing agent: 'Is there a CDD, and how many years remaining on the bond?'
• Look at the seller's annual property tax bill, CDD line item is visible.
• Compare two similar homes in CDD vs no-CDD communities on TOTAL monthly carrying cost, not just price.
• Pulte Coral Edge in Margate is intentionally CDD-free, read the marketing claims and verify in the disclosure documents.

“The buyer who pays $50,000 more for a CDD-free home and sleeps soundly for 30 years has made a better decision than the one who got a 'deal' at sticker price and pays $100,000 in cumulative CDD over the same hold.”