Shopping homes in New Tampa and seeing both “CDD” and “HOA” on listings? You are not alone. Understanding how these two play different roles can save you surprises in your monthly budget and at closing. In this guide, you will learn what each covers, how fees are billed, what to expect in New Tampa, and how to verify exact amounts before you make an offer. Let’s dive in.
CDD vs HOA in plain English
What a CDD is
A Community Development District (CDD) is a public special-purpose government created under Florida law to plan, finance, build, and maintain community infrastructure. A CDD often issues tax-exempt bonds to fund roads, stormwater systems, and big shared amenities. Homeowners within the district repay those costs through CDD assessments that are typically collected on the property tax bill as a non-ad valorem line item.
What an HOA is
A Homeowners Association (HOA) is a private membership organization formed by recorded covenants. It manages private common areas, enforces property standards, and runs day-to-day operations. HOAs are funded by dues billed monthly, quarterly, or annually and can levy special assessments when needed as allowed by their governing documents.
What each typically covers
Typical CDD items
- Major infrastructure at community creation, such as internal roads in some cases, sidewalks, stormwater systems, lakes and ponds, and entry landscaping.
- Large community facilities when financed by the district, such as a clubhouse, pool complexes, or sports fields.
- Ongoing district operations and long-term structural needs when the district funds operations and maintenance in addition to debt service.
Typical HOA items
- Maintenance of private common areas, including landscaped medians, neighborhood parks, mail kiosks, and private streets when applicable.
- Amenity operations like staffing, utilities, pool service, janitorial, and programming.
- Covenant enforcement, architectural control, insurance for common areas, management fees, and routine reserves for smaller repairs.
Where they can overlap
- The CDD may build and own a clubhouse while the HOA operates it. Your tax bill covers the CDD’s debt service; your HOA dues cover staffing and utilities.
- The HOA may manage private roads while the CDD handles major landscape corridors and stormwater systems.
- Master associations can have subassociations for gated enclaves. If you buy in a subassociation, your total dues include both layers.
How fees are billed
How CDD assessments appear
CDD assessments most often show up on the Hillsborough County property tax bill as a non-ad valorem assessment. You will see them listed under special district or non-ad valorem lines. The amount and frequency are tied to the district’s bond repayment and budget. Some districts may bill directly or offer installment options, but collection through the tax bill is common.
How HOA dues are collected
HOAs bill on a set cycle, often monthly or quarterly, through their management company. You may pay by invoice, coupon book, or autopay. If dues are late, the HOA can apply late fees or interest and can place a lien or pursue collection under Florida law.
What to expect at closing
For CDDs, the current year’s assessment typically follows the property and is reflected on the tax bill and closing documents. For HOAs, your closing package should include an estoppel letter showing current dues, any amounts owed, pending special assessments, and any one-time fees such as capital contributions or transfer fees if applicable.
What to expect in New Tampa
Many master-planned communities in New Tampa use CDDs to finance and maintain large-scale infrastructure and amenities. Buyers commonly see annual CDD assessments that, when you break them down monthly, feel like a separate budget line alongside your mortgage and insurance. HOA dues vary by the level of amenities, whether roads are private, and whether your home is in a master association plus a subassociation.
Amounts can vary widely based on bond size and timing, lot type, amenity scope, and whether there are multiple layers of governance. The most reliable way to compare neighborhoods is to verify each line item from official sources for the specific property you are considering.
How to verify any property’s costs
Use this quick checklist during your due diligence:
- Ask the listing agent or seller if the home is in a CDD and request the current annual CDD assessment and whether it is on the tax bill.
- Pull the most recent Hillsborough County property tax bill to confirm any non-ad valorem/CDD line items.
- Request the CDD’s adopted budget and bond amortization schedule. CDD budgets, audits, and minutes are public records.
- Request the HOA estoppel certificate. It should show current dues, any arrears, pending special assessments, and transfer or capital contribution fees.
- Review the recorded covenants and plats for maintenance obligations or private roads.
- Confirm who owns and operates major amenities and how operating costs are allocated between CDD and HOA.
- Build a combined budget: mortgage, property taxes including CDD, insurance, HOA dues, and estimated utilities and maintenance.
Compare neighborhoods template
Use this table to organize apples-to-apples numbers for any short list of homes:
| Neighborhood | CDD? | CDD assessment (annual) | HOA dues (monthly) | Other fees (transfer/capital/sub‑HOA) | Who operates amenities | Notes (pending assessments/increases) |
|---|---|---|---|---|---|---|
| Example A | Yes | $ | $ | $ | CDD owns, HOA operates | |
| Example B | No | N/A | $ | $ | HOA |
Source each field from the property tax bill (for CDD), the CDD budget/bond schedule, and the HOA estoppel and budget.
Misconceptions to avoid
- “CDD equals HOA.” A CDD is a public special district. An HOA is a private association. They have different powers and duties.
- “CDD assessments are optional.” They are not. CDD assessments are liens on the property that support district debt service and operations.
- “HOA dues cover everything.” Not always. If a CDD owns major infrastructure or facilities, those capital costs are not funded by HOA dues.
Financing and legal notes
Lenders often escrow property taxes and assessments, which may include CDD charges on the tax bill. Underwriting can treat CDD assessments differently than HOA dues, so confirm with your lender how they will factor into debt-to-income and escrow. Special assessments due near closing can affect loan approval and cash-to-close.
Florida Statute Chapter 190 governs CDDs, including public meetings and audits. Florida Statute Chapter 720 governs HOAs, including estoppel certificates, budgets, and enforcement. For detailed questions about rights, disputes, or foreclosure risk, consider speaking with a real estate attorney, and consult a tax professional for questions about the tax treatment of assessments.
Smart next steps
If you are comparing New Tampa neighborhoods, build your side-by-side table now and verify numbers with the tax bill, CDD budget, and HOA estoppel for each home. Clarify who owns and operates the amenities you care about so you understand both the upfront and ongoing costs. When you are ready, we can walk you through exact figures for any property and help you budget with confidence.
Ready for clarity on a specific home? Connect with the team at Carr Signature Premier Group to Request a Private Consultation & Home Valuation.
FAQs
What is a CDD in Florida?
- A Community Development District is a public special district that plans, finances, builds, and maintains community infrastructure, with assessments typically collected on the county tax bill.
How can I tell if a New Tampa home has a CDD?
- Check the Hillsborough County property tax bill for a non-ad valorem or special district line, and ask for the CDD’s adopted budget and assessment schedule during due diligence.
Are CDD assessments permanent?
- CDD assessments continue as long as required by the district’s bond repayment and operations; they can change with adopted budgets and generally end when debt is retired or the district disbands.
How are HOA dues different from CDD assessments?
- HOA dues fund private common-area upkeep, amenities operations, and rule enforcement; CDD assessments fund public-scale infrastructure and, in some cases, large facilities financed by the district.
Can CDD or HOA costs increase over time?
- Yes. CDD assessments and HOA dues are set through their respective budgets; both can change, and either may levy special assessments if authorized.
Will my lender escrow CDD assessments?
- Many lenders escrow taxes and assessments that appear on the tax bill, which can include CDD charges; confirm your lender’s policy during preapproval.
