Homeowners or home buyers shopping for homes in communities with "CDD" fees are always interested, yet are sometimes confused on what the "CDD" fee actually is, and what it pays for. In Oakleaf Plantation, located in Clay County, Orange Park Florida, there are two parts of the community which have different CDD fees, Phase 1, and Phase 2. In this article you will find a brief description on what a CDD fee actually is, and what Oakleaf Plantation's 2016 fees are, and how they are broken down.
What is a "CDD"?
A CDD is a Community Development District. This is an entity that provides valuable community infrastructure (roads, utilities and amenities) generated by growth and allows a developer to finance those costs with a CDD via tax-free municipal bonds. The bonds pay for roads, utilities, and also amenities such as clubhouses, pools, tennis courts, amenity centers, etc.
A CDD fee is a payment structured by the developer and the County Commissioners prior to the development of the land designed to pay for the infrastructure and/or maintenance of the community. Instead of the developer coming out of pocket to pay for roads, utilities, amenities, etc. a tax-free municipal bond is used to pay for that.
Parts to CDD Fees
Part 1: The Capital Bond Assessment is the repayment portion of the loan, which is a 30 year loan in Oakleaf Plantation with the final payment in Phase 1 being 2034, and Phase 2 in 2035. However, a new bond can be taken out or the existing one refinanced, which in Phase 2 (Middle Village), this may be the case for next year.
Part 2: Operations & Maintenance Assessment is ongoing for the life of the district, and is not related to the repayment of the bond . The "O&M" covers the common amenities such as pools, parks, sports fields, tennis courts, landscaping, etc. This is not a fixed cost and can fluctuate depending on the current adopted budget.
Author:Theresa Foskey - Fleming Island office Phone: 904-982-6929 Dated: March 16th 2016 Views: 3,546 About Theresa: Biography
Originally from New Jersey, Theresa Foskey relocated to Jacksonville in 1995. She and her...
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