Staring at a property tax bill line for a CDD and a separate HOA invoice can be confusing. If you are shopping in Winter Garden, you will likely see both. You want to know what each fee covers, how much to budget, and how they affect qualifying for a mortgage. This guide breaks it all down and shows you exactly how to verify the numbers for any home you are considering. Let’s dive in.
CDD vs HOA: The basics
What a CDD is
A Community Development District is a special-purpose local government formed under Florida law to plan, finance, build, and maintain public infrastructure that benefits a community. The district can issue bonds and levy non-ad valorem assessments on properties in the district. In most cases, the CDD assessment appears as its own line on your Orange County property tax bill. A developer typically controls the board at first, then control transitions to resident-elected supervisors over time.
What an HOA is
A Homeowners Association is a private, membership-based corporation created to enforce covenants, manage private common areas, and provide services. The HOA charges regular dues and can levy special assessments when needed. Dues are billed by the association or its management company. The HOA is governed by a board of directors that homeowners elect after any developer control period ends.
Key differences at a glance
- Legal nature: CDD is a governmental district; HOA is a private association.
- Billing: CDD assessments usually appear on the property tax bill; HOA dues are billed separately.
- Purpose: CDD finances and maintains public infrastructure; HOA manages covenants, private common areas, and services.
How fees are set and billed
CDD assessments
CDDs commonly use two types of assessments:
- Debt service assessments to repay bonds used to build infrastructure.
- Operation and maintenance assessments for ongoing upkeep that the county does not cover.
Assessments are allocated to each parcel based on a benefit methodology. Amounts can differ by lot type or size. The CDD board adopts budgets in public meetings and can adjust O&M assessments following legal notice requirements. You will usually pay your CDD assessment as part of your annual property tax bill. Some districts allow prepayment of the remaining bond portion subject to bond documents.
HOA assessments
HOA dues are set in the annual budget adopted by the board. Dues can be monthly, quarterly, or annually, and can be equal per lot or vary by unit type. Special assessments may be used for capital repairs or unexpected costs if allowed by governing documents. Associations typically plan for reserves for major components, and billing, late fees, liens, and foreclosure follow Florida statute and the HOA’s rules.
What each fee typically covers
What a CDD funds
- Roads, drainage and stormwater systems, lakes, water and sewer infrastructure when built by the district
- Major entry features and landscaping within public or district-maintained areas
- Amenities that are part of district infrastructure, such as clubhouses, pools, and parks
- Long-term capital replacement of district infrastructure
What an HOA funds
- Private common-area maintenance and landscaping
- Gate operation, security services, and community events
- Amenity operations and staffing such as pools and fitness centers
- Exterior maintenance in certain townhome or condo associations
- Trash or pest control if the HOA contracts for these services
- Reserve contributions for HOA-owned structures and amenities
Typical costs in Winter Garden
In Central Florida master-planned communities, CDD assessments range widely based on bond debt and amenity scope. In many recent Winter Garden and Horizon West neighborhoods, annual CDD assessments for single-family lots are often several hundred dollars to roughly 1,500 dollars or more per year. Communities with larger bond debt or extensive infrastructure can be higher.
HOA dues also vary. A basic HOA that covers common-area landscaping and entry features might be 20 to 100 dollars per month. Amenity-rich neighborhoods with clubhouses, pools, and staffed services can run 100 to 400 dollars per month or more. Townhome or condo associations that include exterior maintenance and insurance are usually higher.
The combined impact can add a few hundred to several thousand dollars per year, depending on the neighborhood. Always verify the exact current amounts for the specific property before you write an offer.
How to verify amounts in Orange County
Quick 4-step check
- Pull the latest property tax bill. Look for a CDD line listed as a non-ad valorem assessment and note the amount for the current tax year.
- Request the HOA estoppel or resale certificate. This shows regular dues, special assessments, and any balances owed.
- Review the CDD’s current adopted budget and assessment schedule. Check the district website or contact the district manager to confirm current rates and any pending changes.
- Ask your lender how they treat the CDD amount. Confirm whether it will be escrowed with property taxes and how HOA dues factor into your debt-to-income ratio.
Where the records live
- Orange County Property Appraiser and Tax Collector: tax bills and non-ad valorem assessments.
- Individual CDD websites or the district manager: budgets, meeting agendas, assessment rolls, and debt schedules.
- HOA documents: Declaration, bylaws, rules, current budget, reserve policy, and recent meeting minutes from the association or its management company.
- Orange County public records: recorded bond documents, engineer’s reports, and plats that show benefit allocation.
Budgeting, lending, and closing
Budget smart
Add both CDD and HOA amounts to your annual housing cost alongside mortgage, taxes, and insurance. If your lender escrows property taxes, the CDD assessment is often included because it appears on the tax bill. HOA dues are usually paid separately to the association, so plan for that monthly or quarterly payment. Remember to account for the possibility of special assessments.
How lenders view CDD and HOA
Lenders treat CDD non-ad valorem assessments as a recurring obligation that can affect qualifying. Underwriting teams will want documentation of the amount. HOA dues and any special assessments must also be disclosed. Ask your loan officer how your program treats CDD assessments and whether any large, pending assessments could impact approval.
Closing logistics
Verify whether your lender will escrow the CDD portion of your tax bill. HOA dues are often prorated at closing if they are billed monthly, quarterly, or annually. For CDDs with bond debt, ask if any portion is prepayable and whether the current owner has prepaid anything that affects your future payments.
Red flags and smart questions
What to review
- CDD adopted budget for the current fiscal year and the debt service schedule
- Assessment roll for the specific lot and whether amounts are O&M, debt service, or both
- HOA budget, reserve study or policy, and recent meeting minutes
- Estoppel certificate showing regular dues and any pending or approved special assessments
- Ownership and maintenance responsibilities for streets, lakes, and amenities
Questions to ask
- What is the exact annual CDD amount for this lot, and how is it split between O&M and debt service?
- Is there remaining bond debt, and what is the anticipated term?
- When are CDD assessments billed and collected, and will my lender escrow them?
- What do HOA dues include, and how often are they due?
- Are any special assessments planned or recently approved by the HOA or CDD?
- Is the HOA or CDD still under developer control, and when is homeowner turnover expected?
- Are there any lawsuits, contractor disputes, or a pattern of frequent assessment increases in the last few years?
Winter Garden context
Winter Garden and nearby Horizon West have seen rapid growth with new master-planned communities. Many of these neighborhoods use a CDD to fund infrastructure and amenities along with an HOA to manage rules, services, and operations. Expect to see both a CDD line on the tax bill and separate HOA dues in many Winter Garden communities.
The bottom line
CDD and HOA fees do different things and are billed in different ways, but together they shape your total cost of ownership. In Winter Garden, it is common to see both. Verify the exact amounts for the specific home, understand what each fee covers, and confirm how your lender will treat them. With the right documents in hand, you can compare communities fairly and budget with confidence.
If you want help decoding fees for a specific property or comparing neighborhoods, connect with Nick Amburgey to get local, tailored guidance.
FAQs
What is a CDD and how does it affect Winter Garden buyers?
- A CDD is a local government district that finances and maintains infrastructure. Its assessment usually appears as a non-ad valorem line on your Orange County property tax bill and adds to your annual housing cost.
How do I know if a home has a CDD assessment?
- Pull the most recent property tax bill and look for a CDD line item. You can also review the CDD’s assessment roll or contact the district manager to confirm the current amount for the parcel.
Can I prepay a CDD assessment to remove the bond portion?
- Some districts permit prepayment of the remaining bond debt under the bond documents. Ask the district manager for written guidance on whether prepayment is allowed and how it would change your annual assessment.
Do lenders escrow CDD payments like property taxes?
- Often yes, because CDD assessments typically appear on the county tax bill. Confirm with your lender if the CDD amount will be escrowed and how it factors into your qualifying ratios.
Why do some Winter Garden communities have both a CDD and an HOA?
- Developers often use a CDD to fund roads, drainage, and amenities, while the HOA enforces covenants and manages services and operations. Each covers different responsibilities.
Will my HOA dues cover everything the CDD does?
- No. HOA dues fund association responsibilities like private common areas, services, and amenity operations. CDD assessments fund district infrastructure and its maintenance. You should budget for both if the community has both entities.
Where can I verify exact CDD and HOA amounts for a property?
- Check the property’s tax bill for the CDD line, request the HOA estoppel or resale certificate for dues and special assessments, and review the CDD’s current adopted budget and assessment schedule.
