HOA: a private association
A homeowners’ association enforces recorded covenants and collects assessments to maintain common areas. Florida law requires that a buyer get a disclosure summary before signing a contract. It states that membership is mandatory, that you’ll owe assessments (and the current amount, if applicable), that unpaid assessments can lead to a lien, and that the developer may be able to amend the covenants.
If the summary isn’t provided before you sign, the contract is voidable: you can cancel in writing within 3 days after receiving the summary or before closing, whichever comes first.
Sources: Fla. Stat. §720.401 (HOA disclosure summary).
CDD: a special-purpose local government
A community development district is created under Chapter 190 to build and maintain infrastructure in a new community. Florida law requires every contract for the initial sale of a lot or home in a CDD to include this disclosure in bold, larger type, just above the buyer’s signature: the district “may impose and levy taxes or assessments, or both,” which “pay the construction, operation, and maintenance costs of certain public facilities and services” and “are in addition to county and other local governmental taxes and assessments.”
Sources: Fla. Stat. §190.048 (CDD disclosure to buyers).
How each one is billed
| HOA | CDD | |
|---|---|---|
| Who sets it | The association’s board, under its governing documents | The district’s board of supervisors, annually |
| How you pay | Billed by the association (often monthly or quarterly) | Usually as a non-ad valorem assessment on the county property tax bill |
| Disclosure | HOA disclosure summary (§720.401) | Contract disclosure on initial sales (§190.048) |
The St. Lucie County Tax Collector collects ad valorem taxes and non-ad valorem assessments together on one tax notice. Payments are due beginning November 1 and become delinquent April 1. Special assessments placed on the tax roll follow the property and don’t have to be paid off at a sale or refinance.
Sources: St. Lucie County Tax Collector: Taxing Assessments; St. Lucie County Tax Collector: Special Assessments.
What to check before you buy
- Ask for the HOA disclosure summary and the current dues, plus any special assessments.
- Look at the most recent property tax bill for the address and read the non-ad valorem section for CDD or other assessments.
- Remember that a seller’s tax bill reflects the seller’s exemptions. Use it for the assessment lines, not as your future tax total.
- Add both to your monthly budget. The mortgage payment calculator has a line for HOA dues; add a CDD assessment to the property tax figure.
More questions people ask
Are CDD fees included in my mortgage escrow?
If your lender escrows property taxes, it pays the tax bill, and CDD assessments collected on that bill are part of it. HOA dues are billed separately by the association and usually aren’t escrowed. Confirm with your lender.
Can a home have both an HOA and a CDD?
Yes. They are separate: the HOA is a private association under Chapter 720, and the CDD is a local government district under Chapter 190. Check for both.
Talk to Isaiah
If you’re looking at a community with an HOA, a CDD, or both, send me the address and I’ll help you find both numbers before you write an offer, so the monthly cost doesn’t surprise you later.
Answered by Isaiah James, a licensed Florida real estate agent. A real person, not a chatbot.
Isaiah James · Coldwell Banker Realty