Looking at new-build homes in Dade City and seeing both CDD fees and HOA dues on the brochures? You are not alone. It can be confusing to sort out what you will pay, what those payments cover, and how they change over time. In this guide, you will learn the difference between CDDs and HOAs, how these costs show up in Pasco County, what to review before you buy, and how to budget for the long run. Let’s dive in.
CDD basics in Pasco County
A Community Development District, or CDD, is a local special-purpose government created under Chapter 190, Florida Statutes. The CDD plans, finances, builds, and operates community infrastructure such as roads, water and sewer lines, stormwater systems, landscaping, and recreation facilities.
To fund those improvements, a CDD commonly issues tax-exempt municipal bonds. Property owners inside the district repay the bonds and cover operations through annual CDD assessments. These assessments are a statutory lien on the property. They are usually collected as a non ad valorem line on your Pasco County property tax bill, or by a separate special-assessment bill.
A CDD has a board of supervisors that governs the district. In the early years of a new community, the developer usually controls the board. Over time, control shifts to resident-elected supervisors. If you do not pay CDD assessments, the district can enforce the lien, including foreclosure remedies similar to other special assessments.
HOA basics and dues
A homeowners’ association, or HOA, is a private not-for-profit corporation governed by Chapter 720, Florida Statutes. The HOA manages common elements, enforces covenants and rules, and provides community services in the subdivision.
HOAs charge regular assessments, often monthly, quarterly, or annually. These dues fund maintenance, insurance for common areas, management, landscaping, amenities under the HOA, and reserves for future repairs. HOAs can also levy special assessments for unplanned needs or capital projects.
An HOA board of directors runs the association. In new communities, the developer may appoint the board until turnover to homeowners. Under Florida law, HOAs can record liens and, if needed, foreclose for unpaid assessments.
Key differences buyers feel
Public vs. private
- CDD = public district. A CDD is a public special district with the authority to issue bonds, levy assessments, and hold public meetings.
- HOA = private association. An HOA is a private corporation formed by recorded covenants. It cannot issue municipal bonds, but it can levy assessments and record private liens.
What the money funds
- CDD assessments generally fund the big-ticket infrastructure and the debt service on bonds, plus district operations and maintenance for district-owned assets.
- HOA dues cover community operations such as common-area upkeep, HOA-managed amenities, insurance for HOA elements, management fees, and reserves.
Billing and visibility
- CDD assessments often appear as a non ad valorem line on the Pasco County tax bill or as a separate CDD bill. The amount may be higher in the early years while bonds are being repaid.
- HOA dues are billed by the association or its management company on a set schedule. In new communities, dues may start lower during developer control, then increase after turnover when homeowners assume full costs.
Permanence and changes
- CDD debt service follows the bond amortization schedule. It continues until the bonds are paid off or prepaid. Operations and maintenance portions can change with the annual budget.
- HOA dues can change annually with the budget and reserve needs. HOAs may also adopt special assessments.
Who controls budgets early
Both the CDD and HOA are often developer-controlled in the beginning. The timing for turnover to homeowners differs based on statute and governing documents. During this period, your influence on budgets is limited until homeowner elections occur.
Where fees show up in Pasco
In Pasco County, many master-planned communities use CDD financing to build infrastructure while keeping initial home prices lower. If a home is in a CDD, you will usually see a CDD line on your property tax bill as a non ad valorem assessment. Some districts bill separately. You can confirm how a specific CDD is billed through the Pasco County Tax Collector or Property Appraiser records, the CDD’s district manager, and the district’s adopted budget.
HOA dues are billed by the association or its management company. Ask for the current payment schedule, what is covered, and whether any special assessments are planned.
Budgeting for both costs
Think of CDD and HOA as two separate, recurring housing costs. Your monthly affordability should include both, along with property taxes and insurance.
- Two bills to plan for. You may have a CDD assessment plus HOA dues. Treat both as fixed costs in your budget.
- Initial price vs. ongoing cost. CDD financing can lower the upfront home price, but you repay infrastructure over time. That can work well if you prefer lower cash at purchase and stable, long-term payments.
- Expect changes over time. CDD operations and HOA dues commonly rise as communities mature. A practical approach is to budget today’s costs plus a 10 to 20 percent buffer for potential increases or one-time HOA special assessments.
- Talk to your lender early. Lenders consider recurring assessments in debt-to-income ratios. Confirm with your lender whether the CDD assessment is escrowed with your taxes or billed separately and how it will be treated in underwriting.
What to ask before you buy
Before you sign a contract on a new-build in Dade City, request the documents below. These help you understand current costs, what the fees fund, and the path ahead.
CDD documents
- Latest adopted CDD budget showing debt service and operations and maintenance.
- Engineer’s or feasibility report that lists the infrastructure financed by the CDD.
- Bond documents or the Statement of Special Assessments showing remaining term and annual debt assessment.
- Meeting minutes from the past 12 to 24 months to spot projects and budget changes.
- How the CDD is billed, either on the county tax bill or as a separate bill, plus recent examples.
- District manager contact details and the district website if available.
HOA documents
- Recorded Declaration of Covenants, Conditions and Restrictions, bylaws, and rules.
- Current HOA budget and any reserve study.
- Schedule of regular dues and any pending or planned special assessments.
- Board meeting minutes for the past 12 to 24 months.
- Management company contract or contact information.
- Any litigation disclosures that could affect costs.
Other helpful items
- Seller or developer disclosure of all assessments tied to the lot.
- Title commitment exceptions related to easements, assessments, or liens.
How to read the documents
Separate CDD debt and operations
Break your CDD assessment into two parts. Debt service tends to be fixed by the bond schedule. Operations and maintenance can change year to year with the adopted budget. Check how many years remain on the bonds and whether prepayment or refinancing has occurred.
Evaluate HOA financial health
Compare the HOA’s reserves and any reserve study to the assets it maintains. Thin reserves or no reserve study can mean higher dues later or special assessments. Review recent minutes for capital projects, budget shortfalls, and discussions about dues increases.
Confirm who owns amenities
Identify whether the clubhouse, pool, parks, and landscaping are owned by the CDD or the HOA. Ownership determines who insures, maintains, and ultimately replaces those assets, which affects your long-term costs.
Red flags to watch
- Rapid increases in CDD operations budgets or multiple pending HOA special assessments.
- CDD debt with large remaining principal relative to the number of developed lots, which can elevate per-home assessments.
- Litigation involving the HOA or CDD, or high levels of unpaid assessments.
- Reserve studies showing big shortfalls or no reserve funding at all.
- Difficulty obtaining budgets, reserve studies, or bond documents.
If you see any of these issues or the structure seems complex, consult a real estate attorney for legal questions and your lender for loan and escrow treatment.
Simple comparison checklist
Use this quick checklist when comparing two or more new-build communities in Dade City:
- Confirm whether a CDD exists and how the assessment is billed.
- Note the current annual CDD amount, split between debt service and operations.
- Note the current HOA dues schedule and what is included.
- Review the last 12 to 24 months of CDD and HOA meeting minutes.
- Check the HOA’s reserve study and reserve balance.
- Identify which entity owns each major amenity.
- Ask about any planned special assessments or major projects.
- Add CDD plus HOA plus property taxes and insurance into your monthly budget. Include a 10 to 20 percent buffer for increases.
- Ask when turnover to homeowners occurs for both the CDD and HOA.
Local support from The Waugh Group
Comparing CDD assessments, HOA dues, and long-term budgets can feel like a second job. Our team works across Pasco County and the greater Tampa Bay region. We can help you request the right documents, read the budgets, and compare line items so you can choose the community that fits your goals and budget.
If you are weighing new communities in Dade City or elsewhere in Pasco County, gather the CDD and HOA documents listed above and review them before you finalize your purchase. If you would like help pulling those documents and stacking up the long-term costs, reach out to The Waugh Group. We are here to make the numbers clear and the process smooth.
FAQs
Are CDD assessments mandatory in Dade City?
- Yes. For parcels within a Community Development District, assessments are mandatory, create a statutory lien, and are enforceable if unpaid.
How do HOA dues differ from CDD fees?
- HOA dues fund private association operations and reserves, while CDD assessments fund public district infrastructure, bond repayment, and district operations.
Will CDD and HOA costs change over time?
- CDD debt service follows the bond schedule, while CDD operations and HOA dues can change annually; HOAs may also levy special assessments.
How do lenders treat CDD assessments?
- Lenders consider recurring assessments in debt-to-income ratios; ask how your lender treats CDD charges that appear on the tax bill or as a separate bill.
Which costs more, a high CDD or a high HOA?
- It depends on what the fees provide. Evaluate services and amenities, long-term trends, and the financial documents before deciding which mix fits your budget.
