If you live in a newer Florida master-planned community, you may get two bills: a CDD assessment and HOA dues. They look similar and people use the names interchangeably, but they are two completely different things: different law, different governance, different money, different enforcement. Here is the clean version.
The one-sentence difference
A CDD is a unit of local government that financed and maintains your community's infrastructure; an HOA is a private nonprofit that enforces neighborhood rules and appearance. You can be subject to both at once, and they do not overlap.
The CDD (Community Development District)
- What it is: a special-purpose unit of local government created under Chapter 190, Florida Statutes.
- What it does: plans, finances, builds, owns, and maintains community-scale infrastructure: roads, stormwater, water/sewer, and often amenities, frequently funded by bonds issued when the community was built.
- Who runs it: an elected Board of Supervisors. Early on, supervisors are elected by landowners (one vote per acre); once the district passes a threshold of qualified electors, elections move to the general November ballot. (190.006.)
- What your assessment covers: two pieces: Operations & Maintenance (O&M) and Debt Service (paying down the bonds). These are non-ad-valorem assessments, collected on your county property-tax bill. (Collected under 197.3631 et seq.)
- It is public: CDD meetings are open to the public and its records are public records (Sunshine Law, Ch. 286; Public Records, Ch. 119). The district must maintain an official website with specific content (189.069).
The HOA (Homeowners' Association)
- What it is: a private, not-for-profit corporation governed by Chapter 720 (with corporate mechanics under Chapter 617).
- What it does: enforces the declaration of covenants and community rules: architectural review, paint colors, landscaping standards, parking, and general appearance.
- Who runs it: a Board of Directors elected by the members (homeowners), one vote per parcel.
- What your dues cover: the association's operating budget: common-area upkeep the HOA is responsible for, management, insurance, and reserves.
- It is private: governed by your recorded covenants, not by public-meeting law in the same way a government body is.
Side by side
| | CDD | HOA | |---|---|---| | Legal nature | Unit of local government (Ch. 190) | Private nonprofit (Ch. 720 / 617) | | Created to | Finance + maintain infrastructure | Enforce covenants + appearance | | Governing body | Board of Supervisors | Board of Directors | | Elected by | Landowners then qualified electors (190.006) | Members, one vote per parcel | | You pay | Non-ad-valorem assessment (O&M + debt) | Dues (operating + reserves) | | Collected via | County tax bill (197.3631) | Billed by the association | | Records/meetings | Public (Ch. 119 / 286) | Private (per covenants) |
Why you might pay both
Simple: they do different jobs. The CDD built and maintains the big-ticket infrastructure and is paying off the bonds that funded it; the HOA handles neighborhood-level rules and the common areas it is responsible for. Your CDD assessment is not a duplicate of your HOA dues: it is a separate cost for a separate function, which is exactly why both can appear in the same community.
The part that trips people up: how unpaid bills are handled
This is the biggest practical difference, and it matters: a CDD assessment is collected like a tax. Because it rides on the county tax bill as a non-ad-valorem assessment, non-payment follows the tax-certificate process under Chapter 197, not the HOA lien-and-foreclosure process under 720.3085. They are different legal mechanisms with different consequences. If you are facing either, that is a question for a licensed Florida attorney, not a web page.
How CDDStream fits
CDDStream answers these questions for residents and managers directly from the district's own documents and Florida CDD law, with a citation every time, so "why do I pay both?" gets a clear, sourced answer instead of a confused phone call. It is information, not legal advice: for anything specific to your situation, check with your district counsel.
CDDStream is software; it is not a law firm and does not create an attorney-client relationship. Verify specifics with your district counsel.