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CDD BASICS

CDD BASICS

 

  1. What is a CDD?

 

A Community Development District (also referred to as a CDD or a District) is a special-purpose unit of local government authorized by Chapter 189 and Chapter 190 of the Florida Statutes, as amended.  A CDD is organized similarly to other local governments in Florida.. The specific scope of the services for the CDD is defined in a creation ordinance from the City of Margate and Broward County, delegating certain public functions to the CDD.  Generally, CDD's construct, manage, and maintain the common infrastructure.  Specifically, the Coral Bay CDD’s infrastructure responsibilities encompass:

  • the stormwater management and secondary drainage systems,

  • all roadway systems and the gates,

  • all sidewalks,

  • the canals and the lake,

  • landscaping, at all common areas,

  • structures at all amenity centers, parks, pools, playgrounds, and open areas.

 

  1. Who governs the CDD?

 

The CDD is governed by a five-member elected Board of Supervisors (the Board), much like a City Council, with each Supervisor position designated by a Seat number (1 to 5).  The designated term for each Board seat is four years.   A person is elected to a seat by all qualified, registered voters within the District, with the election occurring as part of the November ballot on even numbered years.  In addition, by law the Board must hire a District Manager and a District Counsel (Attorney for the District). Those  staff members operate in a manner very similar to a City Manager and City Council.

 

  1. What are the functions of the Board and Staff

 

The Board sets the policy and makes the decisions, and the District Management staff administers the operations of the District and implements the Board’s policies and contracts. The business of the CDD Board of Supervisors is conducted in the “Sunshine”, which means that meetings and records are open to the public in accordance with Section 286.011, of the Florida Statutes.  Furthermore, the CDD also operates under the ethics provision defined in Chapter 112 and Chapter 190 of the Florida Statues as well as the provisions set forth by the Florida Commission on Ethics.  To support the operations of the District, an Annual Budget is developed.

  1. What does my assessment cover?

 

To support the operations of the District, an Annual Budget is developed.  That Annual Budget consists of two parts: the Debt Portion and the Operation and Maintenance (O&M) portion:

  • The Debt Portion when applicable is the amount proportionately owed by each homeowner within the District to pay the issued bonds (loan) that pay for the District’s exceptionally large infrastructure projects when this method of funding is advantageous, such a repaving all roadways and building the perimeter wall.

  • The Operations and Maintenance (O&M) portion applies to the general day-to-day administrative fees and costs as well as maintenance and repair of the infrastructure and general administrative functions (attorneys, engineers, board meetings, website maintenance, mailings, landscape maintenance, lake maintenance, insurance, utilities, security services, etc.).  Insurance for the District, Audit expenses, and various annual contracts are detailed in the CDD budget.

 

  1. How is the assessment collected

 

The resultant annual assessment is levied on a per home basis and is levied in the form of a non-ad valorem tax that appears on the Broward County tax bill. That CDD assessment is collected by Broward County as part of the overall property tax bill payment and is sent to the CDD once the County receives the payment. Statutory authority for levying these assessments is granted under Florida Statutes Ch. 170.01, 190.021, and 197.3631.

 

  1. Benefits of the CDD

 

Because CDD’s are governmental entities, functioning closer to a city government than a Homeowners Association (HOA), CDD’s have some financial advantages: They may use tax-exempt financing, they are eligible under FEMA rules for emergency clean up in most cases, and they have limited liability under sovereign immunity, which significantly reduces insurance costs.

 

  1. What is the difference between a CDD and my Homeowners Association (HOA)?

 

It is important to understand the scope of responsibilities of the HOA, and its relationship to the CDD, in order for owners and residents to contact the appropriate people when needed. 

 

The limits of an HOA’s responsibilities are essentially set by the way the developer (builder) establishes the property ownership, and therefore maintenance responsibility, within the community.  In the case of Coral Bay, the developer placed the ownership and responsibility of all common areas with the CDD, and placed ownership of each parcel of land, and the home on it, with the respective homeowner.  Therefore, none of the HOAs within Coral Bay own any common property. 

 

As a result, the primary responsibility of each HOA in Coral Bay is to enforce that HOA’s governing documents, and thus maintain a quality living environment that protects the property values of all owners. For more information on the scope of the HOA’s responsibility, please visit the HOA’s page.

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