Do you have second thoughts on paying “dubious fees,” especially if you move to a new neighborhood? Don’t worry; many share the same feeling. In this FAQ, we intend to shed some light on the nature of CDD and HOA fees once you have relocated to Jacksonville, Florida.
First and foremost, contact a local real estate agent if you plan on purchasing a new home in Jacksonville. The local realtors in Jacksonville FL, will know what’s going on in the neighborhood to which you’re thinking about moving. They will draw your attention to CDD and HOA fees!
As a small reminder, CDD means Community Development District. Typically a governing board in planned communities charges homeowners CDD fees. They use the incoming money to better the community’s infrastructure and general development. Improving the roads’ condition is a fine example of how they spend your CDD fees.
On the other hand, HOA fees cover expenses you pay for the Home Owners Association. Every community requires an association to preserve specific rules and even protect your property value. In a word, you should take the HOA's authority seriously. If you’re late or neglect your payment completely, HOA can put a lien on your home!
Are you considering moving to Jacksonville? You might be interested in how HOAs in the city work. You may also wonder, what CDD and HOA fees will be supposed to pay there?
If you’re lucky and buy an older house, you may not have to pay any additional fees. However, properties in recently planned developments in Jacksonville, FL, can have one or both fees attached to them. Usually, they declare if a neighborhood has CDD fees.
Counties in Florida don’t invest in planned communities’ infrastructure. Thus, they typically charge CDD fees to finance the building of utility lines, bridges, and roads. Often, you pay a CDD fee for the construction of amenities, such as playgrounds and pools. Architects and developers in Jacksonville can solicit money as CDD fees from homeowners to pay back the loan. It usually takes about 10-30 years for the owners to pay this amount back. Look at CDD fees as a tax you pay regularly. Many criticize Florida for this tax.
A new community developer issues municipal bonds when they finish the construction. Then, they transfer the cost of the bonds to new home buyers in these communities. The Board of Supervisors establishes the sum you’ll be paying in every new community separately.
Generally, they list the HOA fees and the property listing. It can vary depending on the neighborhood, from $100 to $600. You’ll be paying the HOA fee monthly, quarterly, or annually. So you financially contribute to the maintenance of amenities and the common areas in the community. Some other HOA fees cover cable TV and Internet access care.