Are you eyeing a new home in Winter Garden and unsure how CDD and HOA fees affect your budget? You are not alone. Many buyers see both fees on listings or tax bills and are not sure what they cover or how long they last. In this guide, you will learn exactly what each fee is, how they differ, typical cost ranges in Winter Garden communities, and a step-by-step way to verify the numbers before you make an offer. Let’s dive in.
CDD vs. HOA: What they are
Both CDDs and HOAs exist to fund and manage parts of a community, but they serve different roles and follow different rules under Florida law.
What a CDD does
A Community Development District (CDD) is a special-purpose local government created under Florida Statutes, Chapter 190. A CDD plans, funds, builds, and maintains infrastructure for a development. That can include roads, stormwater systems, sewer, parks, and amenity centers. To pay for these improvements, a CDD can issue bonds and levy non-ad valorem assessments. You will often see a CDD assessment listed as a separate line on the county tax bill, split into two parts:
- Debt service to repay bonds
- Operations and maintenance (O&M) for ongoing costs
CDD boards follow public meeting and public record rules. Budgets, rates, and meeting minutes are available as public records.
What an HOA does
A Homeowners’ Association (HOA) is a private association formed by recorded covenants, conditions, and restrictions, and governed by Florida Statutes, Chapter 720. HOAs collect dues to fund common-area maintenance, amenities like pools and clubhouses, insurance, reserves, and management. Dues are typically paid monthly or quarterly. HOAs can also levy special assessments for capital projects or to cover shortfalls.
HOAs are run by a member-elected board and operate under their governing documents and state statute. Collections, late fees, and lien rights are defined in those documents and Florida law.
Key differences that affect your budget
Understanding these differences will help you project your true monthly and annual housing costs.
Purpose
- CDD: Funds big-ticket infrastructure and community-scale improvements.
- HOA: Manages ongoing maintenance, amenities, insurance, and rules.
Governance
- CDD: Public entity with an elected board and public oversight.
- HOA: Private association governed by CC&Rs and bylaws.
Assessment structure
- CDD: Often split between debt service and O&M. Commonly appears as a non-ad valorem line on your property tax bill, though some districts bill directly.
- HOA: Regular dues, plus possible special assessments when reserves or budgets are not sufficient.
Enforcement
- Both can record liens for unpaid amounts. The priority of those liens in relation to a mortgage or taxes can be complex. Your title company and attorney can explain the priority for your specific property.
Duration
- CDD: Usually long-lived. Debt service lasts until bonds are paid. O&M continues as long as the district exists.
- HOA: Exists for the term set in the community covenants and continues unless terminated according to governing documents and law.
Typical costs in Winter Garden communities
Winter Garden includes several master-planned communities, so fees vary widely. There is no single standard.
- HOA dues can be under $100 per month in low-amenity neighborhoods, or several hundred dollars per month in communities with robust amenities and services.
- CDD assessments range from a few hundred dollars per year to several thousand dollars per year, depending on the size of the bond, scope of infrastructure, and amenity package. CDDs may collect on the county tax bill or bill directly.
What drives costs up or down:
- Size and scope of amenities such as clubhouses, pools, and parks
- Services included, like landscaping, irrigation, or security
- Whether infrastructure was financed by CDD bonds
- Reserve funding policies and budgeting discipline
- Community age and maintenance needs
Tip: If you are comparing two listings in Winter Garden, review the full HOA dues and the exact CDD assessment before assuming one home is more affordable than the other.
Where fees show up on your bills
Knowing how fees are collected helps you plan for cash flow and qualify with a lender.
- CDD assessments are often shown as a non-ad valorem line on your Orange County property tax bill. If billed on the tax bill, they are due with property taxes, usually once per year. Some districts bill directly to homeowners instead.
- HOA dues are typically billed monthly or quarterly by the association or its management company.
If a CDD assessment is on the tax bill, your lender may escrow it with your property taxes. If it is billed directly, you will pay that amount to the district or its manager separately.
Due diligence in Orange County: a step-by-step
Do this early in your offer process so there are no surprises in escrow.
Step 1: Check county records
- Review the Orange County Property Appraiser parcel page to see whether non-ad valorem assessments are listed for the property.
- Pull the current Orange County Tax Collector bill to confirm the CDD amount and how it is collected.
- Search Orange County Clerk of Courts records for recorded CDD formation documents, bond documents, plats, and the community’s CC&Rs.
Step 2: Request seller and association documents
- Ask for the seller’s disclosure and confirm whether the property is in a CDD and an HOA.
- Obtain HOA documents: CC&Rs, bylaws, rules, current budget, reserve study, and recent meeting minutes.
- Order an HOA estoppel letter. It shows dues, outstanding balances, special assessments, and transfer fees due at closing.
- Request CDD public documents: the current budget, adopted O&M and debt service rates, and any notices about planned increases or new bonds.
Step 3: Verify the CDD details
Confirm the:
- Current annual CDD assessment amount
- Split between debt service and O&M
- Years remaining on the bond repayment
- Whether any portion has been prepaid by the seller
- Whether additional bonds or special assessments are proposed
Step 4: Confirm with lender and title
- Ask your lender how they treat CDD and HOA assessments in your debt-to-income ratio.
- Have the title company confirm what is due at closing and what remains ongoing.
- Make sure the closing statement properly reflects prorations and any outstanding balances.
Buyer impacts: financing, taxes, and resale
- Financing: Lenders treat recurring assessments as part of your housing expense. This can affect your qualification and payment estimates, so share CDD and HOA figures with your lender early.
- Taxes: The federal tax treatment of CDD assessments can be complex. Some portions tied to capital improvements may be treated differently than O&M. A tax professional can advise you based on your situation.
- Resale: Higher recurring assessments can influence buyer demand. That said, amenities funded by a CDD can also make a community more attractive. Clear disclosure helps avoid surprises for future buyers.
Red flags to watch
- Delays obtaining the HOA estoppel letter
- Sudden, large special assessments without clear explanation
- CDD debt that creates a large annual assessment with many years remaining
- Litigation involving the HOA or CDD
- Low or poorly funded HOA reserves
- Ongoing developer control with no clear transition plan to homeowner control
Questions to ask before you offer
Use this checklist with any Winter Garden property you are considering:
- What are the exact current HOA dues and how often are they billed?
- Are there any pending or approved HOA special assessments?
- Does the HOA have a reserve study? What is the current reserve balance?
- Is the property in a CDD? What is the current annual CDD assessment?
- Is the CDD amount split between debt and O&M? How many years remain on the bond?
- Does the seller have proof of any prepaid CDD or HOA amounts?
- Can you share the current HOA budget, recent meeting minutes, and the CDD budget and minutes?
How we help you compare homes with CDDs and HOAs
Buying in a master-planned area like Winter Garden often means layering HOA dues with CDD assessments. You want a clean, side-by-side view before you write an offer. Our process is built for that. We source the HOA estoppel early, pull Orange County records, and request CDD budgets and meeting minutes so you see the full picture. We coordinate with your lender to model monthly and annual costs, and we work with title to confirm what is collected at closing.
If you are relocating or purchasing new construction, we can help you compare communities by amenities, fee structures, and long-term obligations so you choose with confidence. Ready to align your budget with the right neighborhood fit? Connect with Thomas Pidgeon to get started.
FAQs
What is a CDD fee in Winter Garden and how is it billed?
- A CDD fee is a non-ad valorem assessment used to repay bonds and fund operations for community infrastructure, and it often appears as a separate line on the Orange County property tax bill.
How do HOA dues differ from CDD assessments for buyers?
- HOA dues cover ongoing maintenance, amenities, insurance, and reserves, while CDD assessments fund infrastructure debt and district operations under Chapter 190 of Florida law.
Where can I verify if a property has a CDD assessment?
- Check the Orange County Property Appraiser parcel page and the current Tax Collector bill for non-ad valorem assessments, then confirm details with the CDD’s budget and meeting minutes.
Can CDD and HOA fees affect my mortgage qualification?
- Yes. Lenders treat recurring assessments as part of your housing expense, so share the exact HOA dues and CDD amounts with your lender early in the process.
Do CDD assessments end when the community is built out?
- Not automatically. Debt service continues until bonds are repaid, and O&M continues as long as the district exists or is formally dissolved.
What documents should I request to confirm HOA and CDD costs?
- Ask for the HOA estoppel, CC&Rs, rules, budget, reserve study, minutes, and the CDD’s current budget, adopted rates, and any notices of planned increases or new bonds.
