Scanning listings in Lake Nona and seeing both CDD and HOA fees? You are not alone. Many buyers new to Central Florida wonder what each fee covers, how long it lasts, and how it affects a mortgage payment. In this guide, you will learn the plain‑English differences, what to budget, where to spot each fee in Orange County records, and the exact documents to request before you sign. Let’s dive in.
CDD vs HOA basics
A Community Development District, or CDD, is a special-purpose unit of local government in Florida. Under Chapter 190 of the Florida Statutes, a CDD can plan, finance, build, and maintain certain public‑type infrastructure for a defined area. CDDs often issue municipal bonds to fund up‑front construction and then levy assessments that appear on your property tax bill.
A Homeowners’ Association, or HOA, is a private membership entity created by recorded covenants. Under Chapter 720 of the Florida Statutes, an HOA manages common areas, enforces community rules, maintains amenities, and charges dues. HOAs can also levy special assessments when needed.
The key difference: the CDD is governmental and its assessments are typically collected on the tax bill to pay for infrastructure and operations. The HOA is private and bills dues for ongoing services, amenities, and reserves.
How each impacts your budget
Both CDD assessments and HOA dues are recurring housing costs. When you compare neighborhoods, include:
- Mortgage principal and interest
- Annual property taxes divided by 12
- Homeowners insurance divided by 12
- HOA dues (monthly or convert to monthly)
- CDD assessment divided by 12
- Utilities, routine maintenance, and your own reserve
Lenders commonly count recurring HOA dues and often include the monthly portion of CDD assessments in debt‑to‑income calculations. Ask your lender how your loan program treats both items and whether either will be escrowed with taxes and insurance.
Where you see them in Lake Nona
Lake Nona is a fast‑growing, master‑planned area in Orange County. Developers frequently use CDDs to finance roads, utilities, stormwater systems, and entry features so communities can deliver infrastructure early. Most neighborhoods also have HOAs for everyday operations and amenities.
In listings, look for separate line items such as “HOA fee,” “CDD,” or “non‑ad valorem assessment.” The seller’s disclosure and community documents should show both obligations. Some Lake Nona master‑planned areas can have both a CDD and an HOA, so confirm which entity runs each amenity and how each fee is billed.
What CDD assessments cover
CDDs typically fund big‑ticket items built up front and, in some cases, ongoing operations. Common budget items include:
- Debt service on bonds that paid for roads, stormwater systems, and utility lines within the district
- Operation and maintenance of certain common infrastructure or amenities if assigned to the CDD
- Capital replacement for CDD‑owned assets if provided for in the budget
CDDs are governed by elected boards. Meetings are public, budgets and minutes are public records, and assessments generally appear on the Orange County property tax bill as non‑ad valorem charges.
What HOA dues cover
HOAs focus on day‑to‑day operations, community standards, and reserves. Typical items include:
- Landscaping and maintenance of privately owned common areas
- Amenity operations such as pools, fitness centers, clubhouses, and parks
- Common area insurance, utilities, security, and management company fees
- Reserves for future repairs and replacements
HOA meetings and records are governed by the association’s documents and Chapter 720. Dues are billed monthly, quarterly, or annually, and special assessments can occur for major projects or reserve shortfalls.
Governance and oversight differences
- CDDs are governmental units. They follow public meeting and public records rules and submit state reports and audits. Residents can attend meetings and vote for supervisors when eligible.
- HOAs are private corporations created by covenants. Members elect boards and follow the association’s bylaws and Florida law. Disputes and enforcement usually follow internal processes set by the governing documents.
Duration and potential changes
- CDD assessments tied to bond debt usually continue until the bonds are paid off, which can be many years. Districts can adjust operations and maintenance assessments and may levy additional assessments within legal limits.
- HOA dues continue as long as the association exists. Dues can increase based on budgets, and special assessments can be adopted under the bylaws and Florida law.
If you are concerned about long‑term costs, ask for the CDD bond amortization or payoff schedule and the HOA’s reserve study and budget history. This gives you a forward look at possible changes.
Practical budgeting formula
Use this simple framework to compare homes across Lake Nona:
- Monthly housing cost = mortgage P&I + (annual property taxes ÷ 12) + (annual homeowners insurance ÷ 12) + HOA dues (monthly) + (CDD assessment ÷ 12) + typical utilities and maintenance.
Build a buffer for repairs and unexpected increases. This helps you compare a home with a higher CDD but lower HOA to one with a lower CDD but higher HOA.
Lake Nona buyer due‑diligence checklist
Request these items early during your contract contingency period:
- CDD documents: adopted budget, assessment schedule, engineer’s report, bond documents, latest meeting minutes, and assessment roll
- HOA documents: Declaration of Covenants and Restrictions, bylaws, operating budget, reserve study, recent financials, meeting minutes, rules and regulations, estoppel letter, and management contract
- County and tax records: current Orange County property tax bill showing any non‑ad valorem CDD assessments
Ask these questions of the seller, builder, association, and your lender:
- What is the current annual CDD assessment? Is it on the tax bill or billed separately, and will any portion be collected at closing?
- Are there outstanding CDD bonds? What is the remaining term and are new bonds planned?
- Which amenities or services are run by the CDD and which by the HOA? Who controls each budget now and in the future?
- What are current HOA dues, how often are they billed, and have there been recent increases?
- Are any special assessments or litigation pending for the HOA?
- Will the lender escrow the CDD and HOA, and how will both be treated for qualification?
- Are there transfer, initiation, or capital contribution fees at resale?
Before closing, make sure you have:
- A final HOA estoppel letter stating amounts due, any special assessments, and transfer fees
- A written CDD assessment statement or confirmation on the tax bill showing the amount and billing method
- Your lender’s written treatment of HOA and CDD for qualification and escrow
Common myths and clear facts
- Myth: “CDD is the same as HOA.” Fact: A CDD is governmental under Chapter 190, while an HOA is private under Chapter 720. They fund different things and follow different rules.
- Myth: “CDD assessments go away after buildout.” Fact: CDD assessments tied to bonds remain until the bonds are paid off. Operations and maintenance charges can also continue as long as the district maintains infrastructure.
- Myth: “CDD payments are optional.” Fact: CDD assessments are statutory obligations that become a lien if unpaid.
Tips for Lake Nona buyers
- Treat both HOA dues and CDD assessments as monthly housing costs when you compare neighborhoods.
- For new construction, ask the builder for the CDD disclosure and an estimate of the annual assessment before you sign.
- Review the Orange County property tax record for the parcel to see non‑ad valorem CDD charges and confirm how they are billed.
- If assessments seem high, request the CDD bond amortization or payoff schedule to understand duration and future changes.
- Consider tradeoffs. CDDs can help deliver roads and amenities sooner without pricing it all into the base home cost, but you pay the assessment over time. HOAs provide services and management but can raise dues or levy special assessments.
Next steps
Understanding how CDDs and HOAs work in Lake Nona helps you make apples‑to‑apples comparisons and avoid surprises at closing. If you want a second set of eyes on the CDD budget, HOA reserves, or how your lender will treat both in qualifying, our team is here to help. Connect with Keith Renner for local guidance, a clear budgeting walkthrough, and introductions to trusted lenders and closing partners.
FAQs
What is a CDD in Florida and how is it billed?
- A CDD is a local government entity under Chapter 190 that funds infrastructure; its assessments typically appear on your Orange County property tax bill as non‑ad valorem charges.
How is a Lake Nona HOA different from a CDD?
- An HOA is a private association under Chapter 720 that manages rules, amenities, and common areas using dues and reserves; a CDD is governmental and funds infrastructure through assessments.
Do lenders count CDD and HOA fees in qualifying?
- Many lenders include HOA dues and often the monthly portion of the CDD assessment in debt‑to‑income; confirm the treatment and any escrow with your loan officer.
Will CDD assessments ever end on a home I buy?
- Debt-related portions can end when bonds are fully paid, but operations and maintenance assessments can continue as long as the CDD maintains infrastructure.
How can I verify a home’s CDD amount in Orange County?
- Review the current Orange County property tax bill for non‑ad valorem assessments, ask the CDD for its adopted budget and assessment schedule, and request a written statement during contract.
What should I ask a builder about CDD before signing in Lake Nona?
- Request the CDD disclosure, the estimated annual assessment, whether bonds are outstanding and for how long, and which amenities are operated by the CDD versus the HOA.
