FOLLOWING INFORMATION IS GENERAL IN NATURE. EXACT LEVELS OF
ASSESSMENTS, PAYOFF BALANCES ETC. FOR A SPECIFIC LOT OR PROPERTY MUST
BE OBTAINED BY CONTACTING THE DISTRICTS’S OFFICE.
community development district is a special purpose form of local
government described as an “independent special taxing district”
and as such is “public”. A homeowners association is a “not for
profit corporation” which is made up of “members” or
homeowners, within a specific geographic boundary and it is
community development district may own and operate the storm water
drainage system, club facility, and the entry features and
landscaping. The homeowners’ association typically oversees the
“Deed Restriction” enforcement and architectural control of the
association. Each of these entities is distinctly different and
operated at “arms length” of each other.
IS A CDD? IT’S FUNCTION ETC...
mentioned above, the District is a special purpose form of local
government that exists under Florida Statute Chapter 190, which is
considered its enabling statute and serves as its charter. Districts
become official after a petition of all landowners within its
proposed boundaries, is approved by an ordinance of the local
general-purpose government (City or County) if the district is 1,000
acres and less. A district larger than 1,000 acres is approved by the
Florida Land and Water Adjudicatory Commission.
district functions as any local government. The district is governed
by a board of five supervisors. Districts have similar powers as
other local governments, with the exception of “police powers”.
Therefore it cannot have its own police department, building, zoning
and compliance codes, etc. This would also include “Deed
Restrictions” which is why community development districts normally
have homeowners’ associations organized within its boundaries.
district is an “independent special taxing district” and
therefore is not “dependent” on the next level of local general
purpose government, for funding, governance, etc. Standard municipal
grade services are delivered to the residents by way of the county
and paid by the way of their real estate tax bill and its ad valorem
portion. The District’s operation is funded by way of non ad
valorem assessments on an owner’s real estate tax bill. The
District itself is tax exempt for most of its property with the
exception of property that may be income producing.
THE CDD EVER GO AWAY ?
many believe, the District does not cease to exist or go away when
its bonds have paid off. The District may continue to exist for
perpetuity. It may be dissolved by way of several events, such as
merger with another community development district, or the local
general purpose government takes over all of the ownership of a
district’s facilities and financial responsibilities.
its initial establishment until after its sixth year in existence,
the board of supervisors is elected by way of a “landowner”
election, wherein, all landowners of the district may participate and
are entitles to one vote per acre or fraction thereof. By statue,
there are five supervisors, no more or less.
are no specific requirements for candidates to meet during the
landowner election phase. Candidates may be whoever is placed into
candidacy and can obtain enough votes to take a seat. After the sixth
year as long as there are more than 250 “qualified electors”
(registered voters) who reside within the confines of the district,
the elections begin a transition.
the next election after the sixth year mark with the prerequisite
minimum number of registered voters (250), two of the three seats up
for election, are held through the “general election” process by
the Supervisor or Elections of the County. Candidates must be
registered voters residing within the confines of the district and
who have met the criteria of being a candidate on the ballot. Land
ownership is not a requirement.
run for a “seat” number such as Seat 1 or Seat 2, etc. In the
first general election both of the seats are a four year term. The
remaining position is still elected by way of landowner election and
is a four year seat as described by statute.
are certain criteria and filing requirements for general election
candidates, including but not limited to the filing of a financial
disclosure form, known as From 1, Statement of Financial Interests.
In brief this form outlines the source of a candidates income and
business interests. In addition there are filing fees, declaring of a
campaign treasury, etc. These details are best addressed by
contacting the County Supervisor of Elections Office.
the eighth year after establishment and thereafter (as long as 250
registered voters continue to exist), all candidates must be
registered voters, residing within the confines of the district. Once
again, there are no land ownership requirements. Those seats are also
4 year seats.
district may issue one or a series of bonds. These are Special
Assessment Bonds. The district may issue long term or short term
bonds. The short term bonds are paid off by the developer when the
lots are sold to a homebuilder. These are never assessed to the
homeowner. The long term bonds are the bonds that are re-paid by way
of the debt service portion of the district’s non ad valorem
assessments on a property owner’s tax bill. The long term debt is a
fixed amount and typically paid back over the 30 year life of the
bonds, by way of non ad valorem assessments on the property owner’s
principal balance of debt placed on the land/lot(s) may be paid off
at anytime by the owner of the land/lot(s). The exact pay off amount
may be received by contacting the district’s office.
AGREEMENTS EXIST BETWEEN THE HOA AND THE CDD?
stated before, the HOA and CDD are independent of each other but may
from time to time enter into agreements that are beneficial to both
parties. This varies from community to community.