HOA vs. CDD Fees In Polk County Communities

Thinking about a home in Kathleen or north Lakeland and seeing both HOA dues and a CDD assessment? You are not alone. Many Polk County communities, including master-planned neighborhoods near TerraLargo, use one or both. Understanding the difference helps you budget with confidence and avoid surprises at closing.

This guide breaks down what HOAs and CDDs are, what each fee typically covers, how they impact monthly costs and lending, and where to find Polk County records to verify numbers. You will get a simple checklist to compare communities apples to apples. Let’s dive in.

HOA vs CDD at a glance

What an HOA is

A homeowners association is a private, membership-based nonprofit that governs a community under recorded covenants. In Florida, most HOAs are governed by Florida Statutes Chapter 720. Condominiums follow Chapter 718. An elected board of owners runs the association under the declaration, bylaws, and state law.

HOAs collect dues, enforce rules from the covenants, maintain common areas, and may levy special assessments when needed. Under Florida law, HOAs can place liens and pursue foreclosure for unpaid assessments following statutory procedures.

What a CDD is

A community development district is a special-purpose unit of local government created under Florida Statutes Chapter 190. A CDD plans, finances, builds, and operates community infrastructure like roads, drainage and stormwater systems, lakes, parks, and sometimes amenities.

CDDs can issue tax-exempt bonds to fund construction. The debt is repaid through non-ad valorem assessments levied on properties within the district. A CDD board is a public body that follows open meeting and public records rules. CDD assessments are enforceable and can result in liens if unpaid.

What each fee covers

Typical HOA dues cover

• Routine operations: landscaping of common areas, pool or clubhouse upkeep, gate operations, common-area utilities, trash or recycling if contracted, and management company fees.
• Administrative costs: insurance on common property, legal and accounting, association taxes or fees, communications.
• Reserves: funds set aside for future repair and replacement of major components like pavement, roofs on shared buildings, or amenities.
• Special assessments: one-time or periodic charges for projects not covered by reserves.

Typical CDD assessments cover

• Capital repayment: annual principal and interest to repay CDD-issued bonds that financed infrastructure.
• Operation and maintenance: the CDD’s annual budget to operate, maintain, insure, and replace CDD-owned facilities.
• Supplemental assessments: additional levies for shortfalls or new capital projects.
• Billing method: many CDD assessments appear on your Polk County property tax bill as non-ad valorem items. Some districts issue separate bills depending on their process.

How fees affect your monthly budget

Both HOA dues and CDD assessments are recurring ownership costs. Lenders typically include them when calculating your debt-to-income ratio, which affects how much home you can qualify to buy.

Use this quick method to budget:

1. Gather the annual amounts.

• HOA dues: annual or monthly dues from the HOA budget or estoppel letter.
• CDD assessments: current year O and M plus bond repayment from the district budget or payoff letter, and any special assessments.

2. Convert to a monthly equivalent.

• Monthly equivalent equals annual amount divided by 12.

3. Add to your housing payment.

• Total monthly housing cost equals mortgage principal and interest plus escrowed taxes and insurance plus HOA monthly equivalent plus CDD monthly equivalent.

4. Flag one-time charges.

• Some communities charge a one-time special assessment or capital contribution at closing. Budget for that separately.

Simple example for clarity

This is a hypothetical example to show the math, not Polk County-specific amounts:

• Mortgage payment: $1,500
• Property taxes and insurance: $400
• HOA dues: $250 per month
• CDD assessment: $1,200 per year equals $100 per month
• One-time special assessment at closing: $3,000. If you want to plan cash flow for year one, you might set aside $250 per month.
• Estimated total monthly outlay: $1,500 + $400 + $250 + $100 + $250 equals $2,500

Always separate one-time items from recurring monthly obligations. Transparency will help you compare homes fairly.

Polk County: where to verify fees

To confirm whether a property in Kathleen or Lakeland has a CDD and the exact fees, use these public sources:

• Polk County Property Appraiser: search the parcel to see the parcel ID, taxing districts, and recorded plat references that may indicate a CDD.
• Polk County Tax Collector: review the current tax bill for non-ad valorem assessments and see if the CDD bills through the tax roll.
• Polk County Clerk of Court or Official Records: pull recorded covenants, CDD creation documents, and meeting records.
• Florida special district registry: confirm the CDD’s registration and administrative contact to request budgets and bond information.
• Florida Division of Corporations: check the HOA’s corporate filings and registered agent details.
• District manager or HOA website: request adopted budgets, meeting minutes, and engineer or bond reports.

If you are under contract, your title company or closing agent will request the HOA estoppel letter and a CDD payoff or verification letter as part of closing.

TerraLargo as a local example

TerraLargo is a master-planned community in the Lakeland-Kathleen area that uses development financing common in Florida. Communities like TerraLargo often have both a CDD and an HOA. When you evaluate a home there or in a similar neighborhood, request:

• The CDD’s adopted budget and most recent assessment schedule for operation and maintenance.
• Bond documentation or a payoff letter showing the remaining bond assessment and amortization schedule.
• The HOA’s current budget, reserve disclosures, and any special assessment notices.
• Recent meeting minutes for both boards to spot upcoming projects or fee changes.

These are public records. Reviewing them early gives you a clearer picture of ongoing costs and future risk.

Apples-to-apples comparison checklist

Use this checklist to compare two Polk County communities side by side:

• Convert every annual fee to a monthly equivalent. Add HOA monthly plus CDD monthly to your mortgage and escrow estimate.
• Separate recurring items from one-time charges due at closing.
• Confirm what each fee covers. Do not assume overlap between HOA and CDD services.
• Check who can raise fees and how. Look at board control periods, owner vote requirements, and any caps in the documents.
• Verify billing method and timing. Are CDD assessments on your tax bill or billed separately? Will your lender escrow them?
• Review reserves and projects. Look for healthy HOA reserves and a stable CDD O and M budget.
• Read meeting minutes from the last 12 to 24 months for both boards.

Financing and closing implications

Lenders consider recurring HOA dues and CDD assessments when qualifying you. Large or unusual special assessments, or significant bond obligations, may prompt additional lender review. If you plan to use FHA or VA financing, ask your lender early about any project-specific requirements.

Both HOAs and CDDs can enforce collection. Unpaid assessments may result in liens that must be cleared at closing. Your title or closing agent will usually obtain HOA estoppel letters and CDD payoff or verification letters to confirm amounts due and whether any prepayments are required.

Before you make an offer, share the HOA and CDD documents with your lender so they can confirm loanability and update your monthly payment estimate.

Red flags to watch

• Low HOA reserves or repeated CDD supplemental assessments.
• Recent or pending special assessments without a clear plan or payoff schedule.
• Large, unresolved capital projects or litigation noted in minutes.
• Lack of clear bond payoff documentation or unclear developer obligations.
• Frequent dues increases or management turnover.

If you see any of these, build in extra time for due diligence and consider negotiating for credits if a fee increase or assessment is imminent.

Buyer tips for your offer

• Ask for the latest HOA budget, reserve information, and estoppel letter, plus the CDD’s adopted budget and a payoff or verification letter.
• Include a due diligence period long enough to review all documents with your agent and, if needed, a real estate attorney.
• Confirm with the Polk County Property Appraiser and Tax Collector whether the parcel sits inside a CDD and how it is billed.
• Share documents with your lender early to avoid loan delays.
• If a special assessment is looming, consider negotiating a price adjustment or seller credit.

Work with a local guide

Clear, verified information is your edge in a master-planned market. If you want help pulling the right records, interpreting budgets, and comparing Kathleen-area communities line by line, connect with a local team that does this every week. For attentive buyer representation and deep Polk County expertise, reach out to Elizabeth Willers. We will help you budget accurately, negotiate confidently, and move forward without surprises.

FAQs

What is the difference between HOA dues and CDD assessments in Polk County?

• HOA dues are private association fees for rules enforcement, amenities, and reserves, while CDD assessments are public non-ad valorem charges that fund and maintain district infrastructure and repay bonds.

How can I tell if a Kathleen property has a CDD assessment?

• Check the Polk County Property Appraiser record and the Polk County Tax Collector bill for non-ad valorem assessments, and confirm with the CDD’s district manager.

Do CDD assessments ever go away?

• The operations portion continues as long as the district exists, but the bond repayment portion typically ends when the bonds are fully retired per the amortization schedule.

Where do CDD assessments show up on my bill?

• Many districts use the county tax roll, so they appear on your annual tax bill as non-ad valorem items; some districts issue separate bills.

How do lenders treat CDD fees during mortgage approval?

• Lenders generally count recurring CDD assessments similar to HOA dues when calculating your debt-to-income ratio, which affects your qualifying amount.

Can I prepay or pay off my CDD bond early?

• It depends on the bond documents; request a payoff or verification letter from the district manager to see if prepayment is allowed and what the amount would be.

What documents should I review before buying in a CDD and HOA community?

• Obtain the HOA declaration, budget, reserves, rules, and estoppel, plus the CDD adopted budget, assessment methodology, bond documents, recent minutes, and a payoff or verification letter.

What are red flags in HOA or CDD records?

• Low reserves, repeated supplemental assessments, pending litigation, unclear bond payoff details, or frequent dues increases without clear justification are common red flags.