The Difference Between HOAs and CDDs (And How They Impact Homebuyers)

By The Shaver Group – Keller Williams Heritage Realty, Orange City FL

Buying a home in Florida often means becoming part of a Homeowners Association (HOA) or a Community Development District (CDD)—and sometimes both. Understanding the difference is essential because these fees can impact your budget, lifestyle, and long-term satisfaction with your new community.

Below is a clear explanation of each, how they work, and what buyers should consider.

✅ What Is an HOA?

A Homeowners Association (HOA) is a governing body created to maintain and manage a neighborhood or community.

What HOAs Typically Cover

• Community amenities (pools, parks, clubhouses)
  
• Lawn care and landscaping in common areas
  
  
• Gate maintenance
  
  
• Community events
  
• Architectural rules and property appearance standards

Pros of HOAs

• The neighborhood stays well-maintained
  
  
• Property values are often better protected
  
  
• Amenities can offer resort-style living
  
• Rules help keep the community uniform and clean
  

Cons of HOAs

• Monthly or quarterly fees
  
• Rules can feel restrictive
  
• Fines and enforcement if rules aren’t followed

Common HOA Fees in the Orange City / Volusia County Area

In West Volusia, HOA fees typically range from $200–$500 per quarter, depending on amenities.

✅ What Is a CDD?

A Community Development District (CDD) is a financing tool used to develop new communities, mostly in growing Florida counties.

It helps developers fund:

• Roads
  
• Utilities
  
• Streetlights
  
• Sewer and water infrastructure
  
• Common-area landscaping
  
• Community amenities like pools or clubhouses

Instead of the developer paying upfront, the costs are passed to homeowners over time.

How CDD Fees Work

CDD fees are paid annually, usually as part of your property tax bill. They have two components:

1. Bond (Assessment) – The cost of building the community infrastructure
   
2. Operations & Maintenance (O&M) – Ongoing upkeep of shared areas

Common CDD Costs

Depending on the community, CDD fees in Central Florida often range $1,000–$2,500+ per year.

🆚 HOA vs. CDD: What’s the Real Difference?

Many new communities have both—the CDD handles infrastructure, while the HOA handles community standards and lifestyle.

🏡 How HOAs and CDDs Impact Homebuyers

1. Your Monthly Budget

Even if a home’s purchase price fits your budget, HOA or CDD fees can increase your monthly payment more than expected.
Always calculate total cost of living, not just mortgage.

2. Property Taxes

CDD fees show up on your tax bill, meaning some communities have higher taxes than others.

3. Rules & Flexibility

If you value:

• Freedom to paint your home any color
  
• Parking RVs or boats
  
  
• Minimal restrictions

…an HOA community may not be the best fit.

4. Amenities & Lifestyle

CDD communities often offer more robust amenities since CDD funding builds them. If pools, parks, walking paths, and clubhouses matter to you, a CDD community may be appealing.

5. Long-Term Value

Well-maintained HOA or CDD communities often retain value more consistently, especially in Florida’s competitive market.

⭐ Which Is Better for You?

There’s no one-size-fits-all answer.

Choose an HOA community if:

• You want a consistent, well-maintained neighborhood
  
  
• You prefer clear rules and structure
  
  
• You want moderate fees and minimal extra taxes

Choose a CDD community if:

• You prefer newer communities with modern amenities
  
• You plan to stay long-term (bond payoff becomes more valuable over time)
  
• You want neighborhoods with advanced infrastructure and parks

🧭 The Shaver Group Can Help You Compare Communities

Whether you're considering a traditional HOA neighborhood or a newer CDD community in Orange City, DeLand, DeBary, Orlando or all of Volusia, Orange, or Seminole counties , we can break down the fees, tax costs, and long-term value—so you know exactly what you're buying into.

Give us a call when you're ready 352-250-9617