COMMUNITY DEVELOPMENT DISTRICTS (CDD)
Definition /
Disclosures
Definition
F.S. Chapter 190 (the Community Development Districts Act of 1980) defines a Community Development District as a local unit of special-purpose government created to serve the long-term specific needs of its community. A CDD’s purpose is the delivery of urban community development services.
CDDs have the authority to plan, finance, construct, operate, and maintain community-wide infrastructure and services specifically for the benefit of its residents. CDDs must comply with the Act in regard to the formation, powers, governing body, operation, duration, accountability, requirements for disclosure, and termination.
A CDD’s responsibilities within a community may include such services as storm water management, potable and irrigation water supply, sewer and wastewater management, and street lights. Funding for these services is obtained through a CDD tax assessment on the homeowners used to refund bonds issued by the developer to finance construction of the infrastructure. The CDD tax assessments are separate to any city or county property taxes.
Disclosures
Contracts for the initial sale of a parcel of real property or a residential unit within the CDD must include the following disclosure:
THE (Name of District) COMMUNITY DEVELOPMENT DISTRICT MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS, ON THIS PROPERTY. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS OF CERTAIN PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND ASSESSMENTS PROVIDED FOR BY LAW.
This disclosure must be printed in boldface and conspicuous type that is larger than the type for the remaining text within the contract.
