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    Buyer Guide

    CDD vs. HOA: What's the Difference?

    They sound similar, but CDDs and HOAs are two completely different things, and most Florida new-construction communities have both. Here's a clean side-by-side.

    Written and reviewed by Carla Goddard, Founder & CEO, Vicinity. Last reviewed September 12, 2026.

    You found a new construction community you like. Then you see two more numbers:

    • HOA: $120/month
    • CDD: $2,400/year

    Now you're wondering:

    Why am I paying both? It's a common question. The short answer is that a CDD and an HOA are two different types of organizations with different purposes. A CDD is a type of public special district used in some communities to finance, provide or maintain certain infrastructure and services. An HOA is a private association responsible for enforcing community rules and managing amenities and services outlined in its governing documents. They can exist together. And when they do, you need to understand both before deciding whether the home fits your budget and lifestyle.

    CDD vs. HOA at a Glance

    Here's the simplest way to separate them:

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    Related

    CDD vs HOA FAQ

    Can a community have both a CDD and an HOA?
    Yes, most large Florida master-planned new construction communities have both. The CDD repays the infrastructure bond and runs major amenities like clubhouses and pools, while the HOA enforces deed restrictions, maintains landscaping, and manages reserves. Expect to pay both.
    Which is bigger - CDD or HOA?
    CDD assessments are usually larger in dollar terms ($1,500 to $6,000/year) but are paid annually on your tax bill. HOA dues are smaller per payment ($60 to $400/month) but paid monthly or quarterly. Add both together to see your true cost.
    Can an HOA put a lien on my house? Can a CDD?
    Both can. HOA liens are enforced under Florida Statute 720; CDD liens are enforced as tax liens under Chapter 190. Both can ultimately lead to foreclosure if left unpaid for years.
    Do CDD or HOA fees go up over time?
    Yes for both. HOA dues typically increase 3 - 8% per year as costs rise and reserves are funded. CDD O&M assessments also increase over time. The CDD bond repayment is fixed by amortization schedule and doesn't grow.

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