What is a CDD? Understanding Community Development Districts in Flagler County

What is a CDD? Understanding Community Development Districts in Flagler County

As you explore the diverse and appealing neighborhoods in Flagler County, you might come across the term "CDD." Understanding what a Community Development District is and how it operates is crucial for making an informed decision about where you choose to call home. 

What Exactly is a Community Development District (CDD)?

A Community Development District (CDD) is a special-purpose government entity authorized under Florida law to plan, finance, construct, operate, and maintain community-wide infrastructure and services for the benefit of residents within a specific development. Think of it as a way for a large-scale development to fund and manage essential infrastructure that might otherwise fall to the traditional city or county government.

What Infrastructure and Services Do CDDs Typically Provide in Flagler County?

CDDs in Palm Coast and Flagler County often play a vital role in providing and maintaining:

• Roads and Streets: Construction and upkeep of local roads within the community.

• Water and Sewer Systems: Development and maintenance of potable water and wastewater infrastructure.

• Stormwater Management: Drainage systems, canals, and retention ponds to manage rainwater.

• Parks and Recreation Facilities: Community pools, clubhouses, playgrounds, sports fields, and walking trails.

• Street Lighting: Ensuring well-lit roadways and common areas.

• Landscaping and Irrigation: Maintaining the aesthetic appeal of common grounds and entryways.

• Security Features: In some communities, CDDs may fund security gates or patrol services.

How are CDDs Funded?

The funding for CDD infrastructure and services primarily comes from two sources:

1. Assessments on Property Owners: When you purchase a home within a CDD, you typically become responsible for two types of assessments:
   
   

• Capital Assessments: These are levied to pay for the initial construction of the infrastructure. They are often included in your property tax bill and can be paid annually over a set period (e.g., 20-30 years) or as a lump sum at the time of purchase.

• Operation and Maintenance (O&M) Assessments: These are annual fees charged to cover the ongoing costs of operating and maintaining the CDD's infrastructure and services. These fees can fluctuate based on the needs of the community.

2. Bond Issuance: CDDs often issue bonds to finance the upfront costs of infrastructure development. The assessments on property owners are then used to repay these bonds over time.

Understanding the CDD When Buying in Flagler County:

As your real estate professional, I will always ensure you are fully aware if a property you are considering is located within a CDD. It's essential to:

• Inquire about the CDD: Ask for detailed information about the CDD's assessments, fees, and the infrastructure and services it provides.

• Review the CDD Disclosure: Florida law requires sellers to disclose if a property is subject to a CDD. Carefully review this documentation.

• Factor CDD Costs into Your Budget: Understand the annual capital and O&M assessments and how they will impact your monthly and yearly housing expenses.

• Compare CDD Communities: Different CDDs in Palm Coast have varying fee structures and levels of amenities. Compare these factors to find the best fit for your needs and budget.

Making an Informed Decision:

Living in a CDD community in Flagler County can offer a fantastic lifestyle with well-maintained amenities and infrastructure. However, it's crucial to understand the associated costs and obligations. By doing your due diligence and working with a knowledgeable real estate professional, you can make an informed decision that aligns with your financial goals and lifestyle preferences.

Have questions about CDDs in Flagler County? I'm here to help! Contact me today for expert guidance on your home buying journey.