Are you comparing homes around Doctor Phillips and puzzled by CDD versus HOA fees? You are not alone. Understanding how these costs work can help you budget smartly, choose the right neighborhood fit, and avoid surprises at closing. In this guide, you will learn what each fee covers, how they are billed, how they affect your mortgage, and how to compare two homes side by side. Let’s dive in.

CDD vs HOA: what they are

What is a CDD?

A Community Development District (CDD) is a special-purpose local government created under Florida Statutes, Chapter 190. A CDD can plan, finance, build, and maintain community infrastructure within set boundaries. It can levy non-ad valorem assessments and issue bonds to pay for infrastructure, with a board of supervisors that shifts from developer control to resident control over time.

What is an HOA?

A Homeowners’ Association (HOA) is a private, nonprofit association formed by recorded covenants, conditions, and restrictions (CC&Rs). Governed by Florida Statutes, Chapter 720 and the community’s documents, an HOA enforces rules, maintains private common areas, sets budgets, and collects dues. Homeowners elect the board of directors, and the association can levy special assessments when allowed by its documents and law.

Key differences at a glance

• A CDD is a public or quasi-governmental entity. It can levy assessments, often on your property tax bill, to repay infrastructure bonds and cover district maintenance.
• An HOA is a private association. It bills dues directly (monthly, quarterly, or annually) for operations, amenities, and reserves.
• You can live in a neighborhood with both a CDD and an HOA, just an HOA, or neither. Always verify at the property level.

What your fees pay for

CDD assessments fund infrastructure

CDD assessments typically go toward the big-ticket items that make a neighborhood function. This includes roads, water and sewer systems, stormwater lakes, entry landscaping, and sometimes district-owned amenity centers. A portion of your assessment usually pays the debt service on bonds that financed the original infrastructure.

HOA dues fund operations and amenities

HOA dues cover day-to-day upkeep of private common areas. Expect line items like landscaping, pool and clubhouse maintenance, gate access or security services, playground care, insurance for common elements, utilities, management, and reserves for future repairs. HOAs may levy special assessments for major repairs or upgrades.

Doctor Phillips patterns to know

Doctor Phillips is a mature, sought-after area with many established neighborhoods and modest HOA structures. Close by, newer master-planned areas across the Orlando region often use CDDs to fund large-scale infrastructure. Examples in the broader region include Horizon West, Lake Nona, and Hunter’s Creek. As you tour homes, confirm whether a CDD applies to the specific property, even if a neighboring subdivision does not.

How fees are billed and change over time

How CDDs bill

CDD assessments are typically levied as non-ad valorem assessments and often appear on your annual property tax bill. Some districts bill directly. These assessments are liens on the property that help repay bonds and fund district maintenance.

How HOAs bill

HOA dues are billed directly by the association, usually monthly, quarterly, or annually. Failure to pay can result in association liens and, in some cases, foreclosure actions per Florida law and the governing documents.

How amounts can change

• CDD assessments are structured around bond repayment and maintenance budgets. They can decrease when bonds are retired, remain steady, or change if districts refinance, issue new debt, or take on special projects.
• HOA dues can increase annually as costs rise. Boards may levy special assessments for unplanned expenses or major capital projects if allowed by their documents.

Impact on mortgage and affordability

Lenders consider both HOA dues and CDD assessments when qualifying you for a mortgage. Depending on the lender, the CDD may be converted to a monthly equivalent or counted differently based on internal policies. Because these fees add to your monthly obligation, they can reduce your maximum qualified loan amount. Ask your lender exactly how they treat CDD assessments and HOA dues so you can budget accurately.

How to compare two homes (simple case study)

Imagine two similar-priced homes you love:

• Home A: In an established Doctor Phillips neighborhood with no CDD and an HOA fee of $200 per month for common-area upkeep and a neighborhood pool.
• Home B: In a nearby master-planned community with an HOA of $125 per month plus a CDD assessment that converts to about $300 per month when averaged out.

In this scenario, Home A’s monthly carrying cost for community fees is $200. Home B’s combined carrying cost is roughly $425. That difference might impact your mortgage qualification and your monthly cash flow. Neither option is “better” by default. Home B might offer newer infrastructure or enhanced amenities funded by the CDD, which could support long-term neighborhood quality. The key is to verify the actual numbers on the tax bill and disclosure documents, then weigh costs against benefits.

Due diligence: documents and disclosures

For buyers

• Review the property tax bill for non-ad valorem assessments that indicate a CDD. Orange County parcel and tax records can help you confirm this.
• Ask the listing agent or seller if the property lies within a CDD. Request the district’s disclosure showing the estimated annual assessment and whether it appears on the tax bill.
• Request HOA documents: CC&Rs, bylaws, rules, current budget, reserve study if available, and recent board meeting minutes.
• Obtain a current HOA estoppel letter to confirm dues, any arrears, special assessments, and transfer fees.
• Ask your lender how they will count CDD assessments and HOA dues for qualification purposes.
• Confirm who owns and maintains the infrastructure that matters to you, such as roads, lakes, and amenities.

For sellers

• Order the HOA estoppel early to avoid delays.
• Provide CDD disclosure and any information on bonds, annual assessments, and how assessments are collected.
• Disclose material facts about pending or approved special assessments.
• Be ready to explain how combined HOA and CDD costs may change over time and how that fits into a buyer’s budget.

Typical costs in Orlando suburbs

• HOA monthly fees often range from under $100 for basic upkeep to $300–$500 or more in neighborhoods with staffed gates, robust amenities, and larger common areas. Some luxury communities may charge higher fees.
• CDD assessments vary widely. Smaller districts may assess a few hundred dollars per year per single-family lot, while large master-planned communities can assess $1,000–$4,000 or more annually, especially in earlier years when bond debt is higher. Over time, assessments can fall as bonds are retired, but they may also change if districts refinance or fund new projects.
• In many new master-planned communities, you will pay both an HOA fee and a CDD assessment. Always add them together to understand your true monthly carrying cost.

Resale and marketability

High combined HOA and CDD costs can narrow the buyer pool, which may influence time on market or price expectations. On the other hand, CDD-funded infrastructure and amenities can enhance neighborhood quality and support values. If you plan to sell, share clear documentation upfront and help buyers understand what the fees fund and how they may change.

Quick checklist for Doctor Phillips buyers

• Check Orange County parcel and tax records for non-ad valorem assessments.
• Ask for the CDD disclosure showing annual assessments and whether they appear on the tax bill.
• Request HOA documents, budget, reserve study, rules, minutes, and a current estoppel letter.
• Ask your lender how they count CDD assessments and HOA dues.
• Review pending projects, special assessments, or litigation in recent HOA minutes.
• Confirm which entity maintains roads, lakes, and amenities: CDD, HOA, or county.

Quick checklist for Doctor Phillips sellers

• Obtain the HOA estoppel letter early in the listing process.
• Provide CDD disclosures and any details about outstanding bonds, annual assessments, and billing method.
• Disclose any special assessments or known upcoming projects.
• Prepare a simple breakdown of combined HOA and CDD costs to help buyers with affordability.

How to make a confident decision

Start by clarifying what you value most: lower monthly fees, newer infrastructure, certain amenities, or minimal rules. Then verify the actual numbers on the latest tax bill, CDD disclosure, and HOA estoppel. Finally, run the combined monthly cost by your lender to understand its impact on your loan. With the right documents in hand, you can choose the home and neighborhood that fit your budget and lifestyle.

Ready for a local, high-touch guide who knows the nuances of Doctor Phillips and nearby communities? Reach out to Pamela Porazzo for tailored advice, a clear side-by-side cost comparison, and a smooth path from offer to closing.

FAQs

What is the basic difference between a CDD and an HOA in Orlando?

• A CDD is a public special district that funds and maintains infrastructure through assessments, while an HOA is a private association that manages rules, amenities, and daily operations through dues.

How can I tell if a Doctor Phillips home has a CDD assessment?

• Review the property’s tax bill for non-ad valorem assessments and ask the seller or agent for the CDD disclosure; county parcel records can also confirm district status.

Do CDD assessments ever go away or decrease over time?

• They can decrease when bonds are paid off, but amounts depend on district budgets, refinancing, or new projects; districts do not dissolve automatically when debt is retired.

How do CDD and HOA fees affect my mortgage qualification?

• Lenders include both in your debt-to-income calculation, which can reduce your maximum loan amount; ask your lender exactly how they count CDD assessments.

At closing, who pays outstanding CDD assessments?

• Payment and proration depend on the purchase contract and timing; clarify with your agent and closing team how current-year and any unpaid assessments will be handled.