Are you looking at new construction in Avenir and wondering why you keep seeing both HOA dues and a CDD assessment? You are not alone. These terms directly affect your budget, your tax bill, and even your loan approval. In this guide, you will learn what each one does, how they show up on your bills in Palm Beach County, and the exact documents to review before you buy. Let’s dive in.
HOA vs. CDD at a glance
An HOA and a CDD often exist side by side in large, master-planned communities. They serve different purposes.
- The HOA is a private association. It enforces community rules, manages amenities, and collects routine dues for operations and reserves.
- The CDD is a public, special-purpose district created under Florida law. It finances, builds, and maintains infrastructure that benefits the community. The CDD can issue bonds to fund roads, drainage, utilities, and parks, and it repays that debt through assessments on homes in the district.
In simple terms, the HOA handles day-to-day living and rules. The CDD handles big-picture infrastructure and long-term maintenance.
How costs show up on your bills
Understanding where each cost appears helps you plan your monthly and annual budget.
- HOA assessments are typically paid monthly or quarterly to the association. These dollars support operations, reserves, and amenity upkeep. The HOA board can also levy special assessments if needed.
- CDD assessments usually appear on your annual property tax bill in Palm Beach County as a non-ad valorem line item. You can verify this on the Palm Beach County Property Appraiser site or learn more about collection on the Palm Beach County Tax Collector’s property tax page.
Many lenders consider recurring HOA dues and CDD assessments when calculating your debt-to-income ratio. Ask your lender how they treat the CDD line on your property tax bill so you know how it affects pre-approval.
Governance and enforcement basics
Florida sets clear rules for both entities.
Unpaid HOA or CDD assessments can become liens. HOA liens are enforceable under Chapter 720. CDD assessments are collected like property taxes and are also enforceable as liens. Always confirm balances and status through estoppel letters and a title search before closing.
What this means for your budget
When you buy in Avenir, you can expect two recurring obligations: HOA dues and CDD assessments.
- CDD debt service is typically set for the life of the bonds, unless refinanced or prepaid. This makes the CDD portion predictable over many years, but it still appears on your tax bill annually.
- HOA dues can change if the board approves new budgets or if reserves are underfunded. If reserves fall short, the HOA may levy a special assessment for capital needs.
Your total carrying cost includes mortgage, property taxes, CDD assessments, HOA dues, insurance, and utilities. Build in a buffer for annual changes and verify planned adjustments before you make an offer.
Avenir buyer due diligence checklist
Gather these items before you close. They help you confirm costs, rules, and any upcoming changes.
HOA documents and financials
- Declaration of Covenants, Conditions and Restrictions (CC&Rs), articles, bylaws, rules and regulations
- Current year budget, recent financial statements, bank statements, and any reserve study
- Board meeting minutes from the last 6 to 12 months for planned dues changes or projects
- Assessment schedule, current dues, and any announced increases
- Records of pending or threatened HOA litigation
- Transfer or estoppel fee amounts and payee details
- Rental rules, short-term rental limits, occupancy rules, architectural guidelines, and pet policies
- Insurance requirements for owners, plus master policy details and deductibles
CDD documents and financials
- CDD annual budget and adopted assessment roll
- Bond documents or a summary showing outstanding principal, remaining term, and debt service schedule
- Your lot’s current CDD assessment amount, annual and per-pay-period equivalent
- Any special assessments or upcoming capital projects
- CDD meeting minutes for the last 12 to 24 months
- Public engineer’s reports, feasibility studies, and multi-year capital plans
You can request public CDD records through the district office or find recorded items through the Palm Beach County Clerk & Comptroller.
Property tax and title items
- Current year property tax bill to confirm the CDD non-ad valorem line item
- Seller’s estoppel certificates for both the HOA and the CDD
- Title search for any HOA or CDD assessment liens
Lender and insurance considerations
- Ask your lender how they treat CDD assessments in underwriting
- Confirm any HOA or CDD insurance requirements that may affect your coverage or cost
Transaction logistics
- Decide in the contract who pays unpaid or special assessments at closing
- Confirm estoppel fees, who orders them, and turnaround times
- Collect contact info for the HOA and CDD management teams
Local specifics to confirm
- Which roads, parks, or facilities the CDD owns and maintains versus the county or municipality
- Turnover timing from developer control to homeowner-elected boards for both the HOA and CDD
Common scenarios in master-planned communities
- Developer-formed districts. Developers often create the CDD early to fund infrastructure. Over time, residents elect board members as the community builds out.
- Bond schedules. If bonds financed roads, water, or amenities, you will likely pay the related debt service for many years. The assessment runs with the property and continues for future owners until the bonds mature or are prepaid.
- Amenity operations. The HOA often operates and staffs amenities, while the CDD may own or maintain key infrastructure. Review both sets of documents to see who does what.
Smart questions to ask your lender and insurer
- How do you count CDD assessments for my debt-to-income ratio?
- Do you escrow for the CDD amount along with property taxes?
- Will HOA dues or special assessments change my loan approval?
- Are there insurance requirements from the HOA or CDD that affect my premium or coverage limits?
How Elite Home Team supports your Avenir purchase
You deserve clear answers before you commit. Our team helps you gather estoppels, budgets, and meeting minutes, and we explain how HOA and CDD costs affect your monthly payment. If you are building new, we advocate through the builder process and can offer up to $10,000 back on qualified new-construction purchases. We also provide bilingual guidance in English and Spanish, from first tour to after closing.
If you want a calm, step-by-step plan for Avenir, we are ready to help you compare neighborhoods, review documents, and coordinate with your lender and title team. Start with a simple conversation and a custom cost breakdown.
Ready to move forward with confidence? Connect with the Elite Home Team for a free consultation. Hablamos español.
FAQs
What is the difference between an HOA and a CDD in Avenir?
- The HOA is a private association that enforces rules and manages amenities with regular dues. The CDD is a public district that funds and maintains infrastructure, often repaid through assessments on your property tax bill.
How do CDD assessments show up on my Palm Beach County tax bill?
Can HOA dues or CDD assessments increase after I buy?
- Yes. HOA dues can change through the association’s budget process, and CDD assessments can change if the district’s operating budget or debt service changes, or if new bonds or special assessments are approved. Review recent budgets and meeting minutes before closing.
Do unpaid HOA or CDD assessments affect title to my home?
- Yes. Both can create liens that are enforceable and can lead to foreclosure if not paid. Always obtain HOA and CDD estoppel letters and a title search before closing.
What documents should I review before buying in Avenir?
- Request HOA CC&Rs, bylaws, rules, budgets, reserves, and minutes, plus CDD budgets, assessment rolls, bond schedules, and minutes. Verify the CDD line on the tax bill and check public records with the Clerk & Comptroller.
How will my lender treat the CDD when I apply for a mortgage?
- Many lenders treat the CDD assessment similarly to property taxes or as a recurring obligation in your debt-to-income ratio. Ask your lender for their exact approach early in the process.
