A CDD (or Community Development District) is a type of government entity that provides infrastructure such as roads, utilities, and amenities to specific planned unit development (PUD).
Most planned communities have a CDD, which means they normally have desirable amenities, possibly activity staff and community sponsored events. TPOST CDD encompasses three (3) communities: Tampa Palms III (Area3), Richmond Place (Area 6) and West Meadows (Area 7) and operates separate of their respective HOA’s.
A CDD allows the developer to finance the costs with a CDD bond through tax-free municipal bonds. This is basically a loan. That “loan” is repaid by the homeowners in the community, with each property charged an annual amount. The CDD shows as an assessment on the homeowners’ tax bill each year and is collected by the county tax collector. If you have a mortgage, this is amortized into your payment.
Usually a portion of the CDD collected is the actual bond repayment, and the balance is the continued Operations and Maintenance (O&M) of the community. The bond portion has an end date similar to a mortgage. Once the bond is paid off, you will be left with only the O&M portion to pay.