What is a CDD and why should I care?

What is a CDD and why should I care?

A lot of new home buyers have no idea what a CDD is and why they should even care when they purchase a new construction home and that is a shame because it is actually quite important.  A CDD is a Community Development District.  It is a governmental unit created to serve the long-term needs of its community.  It's main objective is to plan, finance, construct, operate, and maintain community infrastructure for the benefits of residents. 

In laymans terms a CDD is essentially nothing more than an assessment that appears for a negotiated amount of time on your property tax bill.  Usually it for a long time too, if not forever.  Just like taxes.  But let's be real about this.  Anyone who knows anything about real estate will tell you that a CDD is not necessary because in reality a builder should already have the infrastructure in place and paid for out of his pocket.  It's a part of doing buisness.  However, some builders will pass this bill onto the consumer dressed up with unicorns and rainbows as a lovely CDD that is great for everyone.  These CDDs will get old very quickly.  They are usually in the thousands, not hundreds.  So, if you think your property tax bill is high wait till you get one with a CDD attached to it.  Ouch!  My advice; Don't buy a new construction property with a CDD.  Let the buider eat it, not  you.  Next time you are looking into a new construction development don't forget to ask whether or not there is a mandatory CDD.  They have to disclose it.