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Q How does a CDD assure our funds and projects are managed properly?
A
Professional Management is obligated to operate within an
approved budget. As
a public entity, all meetings and records are open to the
public. It is
the duty of the Board of Supervisors to provide policy direction
to management and demand accountability.
Q How does a CDD assure our funds and projects are managed properly?
A
Professional Management is obligated to operate within an
approved budget. As
a public entity, all meetings and records are open to the
public. It is
the duty of the Board of Supervisors to provide policy direction
to management and demand accountability.
Q
How
are the residents assured of accountability?
A
Florida Statutes require audits and competitive bid practices in
the same manner as municipalities and other government entities.
Supervisors are elected officials and serve at the will
of the voters.
Q
Why
live in a CDD community verses a non-CDD community?
A
The CDD community has the benefit of full collection of
assessments from all properties within the District because the
assessments are collected on the County Tax Roll.
In a well managed CDD, landscaping, water management, and
recreational facilities are generally maintained at or above the
level that existed when the community was new.
Developers of CDD communities often construct amenities
earlier in the development phase of the community.
These community assets are generally of a higher standard
as they have been funded through the sale of Tax-Exempt Bonds,
which can only be used for qualified construction expenses.
Additionally, the expense for these amenities is spread over a
20 or 30 yr period, thereby making more amenities available to a
community from the onset.
Q
How
does the CDD work in favor of the residents needs versus the
developers?
A
Infrastructure costs for homes not within a CDD community are
included in the overall cost of the home which causes the
homeowner to pay property taxes on the higher purchase price of
the home. CDD home
prices do not include the cost of the infrastructure which is
often passed on through a bond obligation which allows that
value to escape property taxation.
Developers do get the advantage of lower financing rates,
savings on sales tax for materials and deferring the full
up-front investment for the infrastructure.
There is no doubt that benefits are achieved from the CDD
process, and the question of who benefits the most is a matter
of how the savings are distributed between higher quality
amenities, lower priced housing and developer profits.
Q
What
value, do I as a resident, get from my CDD for the cost?
A
As a resident, you have assurances that all other residents will
pay their share of the costs for operations and therefore can
depend on full participation to support a dependable and
reliable maintenance program.
The CDD has the ability to purchase materials without
being charged for sales tax.
The CDD has the ability to borrow money at lower interest
rates. The CDD has
the benefit of “sovereign immunity” which protects the members
of the community from unlimited liability.
Drainage, water management, and other mandatory
obligations are maintained efficiently when competitive pricing
and professional management is utilized.
Q
How long is the CDD going to be in place?
A
Even though capital improvement bond debt
service does not exceed thirty years, the maintenance
obligations continue indefinitely because the District holds
title to the common elements in the community.
Q
What
is the upfront value of a CDD to a community?
A
The CDD can offer the residents a broad range of services and
amenities. A CDD
provides peace on mind knowing that funds will be available to
prevent the community from decline which had traditionally
occurred in many
Q
What's
the difference between communities that have a CDD for amenities
versus a community that is run with an HOA?
A In addition to the benefit of sovereign immunity which protects residents from liability issues which could occur in the operation of amenity centers and on District facilities and land, the decision making authority vested to a Board of Supervisors who must deliberate in full open meetings with recordkeeping requirements is a big advantage. Elections integrated into the county elections booths provide the most democratic process and allow for maximum participation by the residents in selecting the Board of Supervisors. There is no need for collections activities as all assessments are paid annually and formal budget hearings are held to insure public input before the budget is adopted.
Q
Are there any advantages or benefits that a CDD can
offer over an HOA?
A
HOA boards generally exist even in CDD communities.
While the HOA is the only entity that can enforce deed
restrictions such as architectural guidelines, landscaping rules
and other aesthetic private property issues, CDDs are generally
better able to administer maintenance to common areas of the
community for the reasons previously mentioned.
In the absence of a CDD, HOA fees must include water
management, landscaping, staffing and administrative expenses
including insurance, repairs, maintenance, improvements,
facility security and recreational programs.
HOA fees are generally much lower in CDD communities
where the common area management is handled by the CDD.
Q
What are the basic duties that can be expected from the
CDD, and where is this in writing?
A Chapter 190 of the Florida Statutes outlines the parameters in which a CDD functions. The establishment ordinance passed by the local governing body (County or City) acts as a charter for the CDD and identifies its duties. From a practical standpoint, the construction, operation and maintenance of community assets requires; budgeting, solicitation of lowest competent bids, managing contracts, supervising staff, directing professional engineering and legal services as needed to comply with state and federal regulations, resident services, providing financial statements and protecting and preserving the District’s assets. There should be an approved set of rules for each community which outlines duties and procedures which the District must follow. Beyond that, the budget establishes the financial plan and outlines the expected efforts for each fiscal year. CDD Board members should be able to attend all meetings, review agendas and participate as an active member in all deliberations of the Board.
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Answers to above CDD questions provided by:
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