WHY CDD IS REQUIRED

1. What is CDD?

CDD is an abbreviation for Capital District Development. CDD is a special-purpose taxing district created when a developer promises to install infrastructure like roads, sidewalks, streetlights, water and sewer systems, and parks. CDD has the power to levy assessments against the properties in the district to raise money to pay for these improvements and ongoing maintenance. In exchange, property owners benefit from the enhanced value of their property and the convenience of having access to these essential services.

2. Why is CDD Needed?

CDD is necessary to fund the development of new communities and revitalize existing ones. Without CDD, the cost of these improvements would fall solely on the shoulders of taxpayers, which would result in higher taxes for everyone. CDD allows the cost to be shared among the property owners who will directly benefit from the improvements.

3. How Does CDD Work?

A CDD is created when a developer submits a proposal to the local government. The proposal includes a detailed plan for the development, including a description of the improvements that will be made. The local government reviews the proposal and, if it is approved, the CDD is created. The CDD then has the authority to issue bonds to finance the improvements. The bonds are repaid through assessments levied against the properties in the district.

4. What are the Benefits of CDD?

There are several benefits to CDD, including:

– Increased Property Values: Properties in CDD districts tend to have higher values than those in non-CDD districts. This is because the improvements made by the CDD make the properties more desirable.

– Improved Quality of Life: CDD districts typically have better infrastructure and amenities than non-CDD districts. This makes them more attractive places to live, work, and raise a family.

– Enhanced Economic Development: CDD districts are often home to new businesses and industries. This is because the improvements made by the CDD make the districts more attractive to businesses.

5. What are the Drawbacks of CDD?

There are also some drawbacks to CDD, including:

– Increased Costs: Property owners in CDD districts pay higher taxes than those in non-CDD districts. This is because they are responsible for paying off the bonds that were issued to finance the improvements.

– Loss of Control: Property owners in CDD districts have less control over the development of their community. This is because the CDD is responsible for making decisions about the improvements that are made.

Conclusion

CDD is a powerful tool that can be used to finance the development of new communities and revitalize existing ones. However, it is important to weigh the benefits and drawbacks of CDD before deciding whether or not it is right for your community.

FAQs

1. What is the difference between a CDD and a Homeowners Association (HOA)?

A CDD is a special-purpose taxing district created to fund the development of infrastructure in a community. An HOA is a private organization that is responsible for maintaining common areas and enforcing deed restrictions in a community.

2. Who pays CDD fees?

Property owners in CDD districts pay CDD fees. The fees are used to pay off the bonds that were issued to finance the improvements made by the CDD.

3. How long do CDD fees last?

CDD fees typically last for 20 to 30 years. This is the timeframe needed to pay off the bonds that were issued to finance the improvements.

4. Can I opt out of paying CDD fees?

No, you cannot opt out of paying CDD fees. CDD fees are a special assessment that is levied against all properties in the CDD district.

5. What happens if I don't pay my CDD fees?

If you do not pay your CDD fees, you may be subject to penalties and interest. In some cases, your property may even be foreclosed on.