As the real estate economy improves, more buyers are purchasing in new and developing communities. Many of our area's new and developing communities are part of a Community Development District or a Stewardship District. It is useful to be familiar with these terms as buyers often question the meaning of them and the fees that are associated with them, which can be seen on a property's annual county tax bill.
A Community Development District or CDD, is an independent local governmental authority. It may impose and levy taxes or assessments on property under the CDD meant to pay for construction, operation and maintenance of facilities and services in the developing area.
A Stewardship District is very similar to a CDD and is utilized when there is a considerably long period of time in which development will take place and where there are additional conservation concerns. A Stewardship District also assesses fees for purposes similar to CDDs.
Buyers may ask whether it is possible to entirely pay off their CDD or Stewardship District fees upon purchase of a home. The answer to this is both yes and no. There are generally two separate parts to each of these types of fees. The first portion is a one time capital assessment or infrastructure bond. This can be paid off, and a payoff can be ordered and disbursed at closing when the property is purchased, or anytime thereafter. Keep in mind however that this is generally a sizeable payoff, depending on how long the previous property owner(s) have already paid toward this fee. The other portion of the fee is for general operating and maintenance and cannot be paid off immediately upon purchase. This portion of the fee is subject to change annually in accordance with an annually adopted budget, similar to that of a homeowner's association.
If you have a buyer that is interested in purchasing in a Community Development District or Stewardship District or have any questions about the foregoing, please contact your local real estate attorney.
Author:Kathy Toonder Phone: 941-544-7270 Dated: April 21st 2015 Views: 905 About Kathy: I enjoy walking the warm sandy beaches, swimming and watching the magnificent sunsets on Florida’s...
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I enjoy walking the warm sandy beaches, swimming and watching the magnificent sunsets on Florida’s Gulf Coast. Thirty years ago I came from Michigan to the Sarasota area to enjoy the beaches of the Sunshine State. The “Beach Communities” Longboat Key, Lido Key, Siesta Key and Casey Key are what draw everyone to make Sarasota their home!
Sarasota the “Cultural Capital” of Florida attracts homeowners that want more than just a beach experience. Sarasota and Manatee communities with the growth of new housing maintain their elegant but laid back style. It is a great place to make it your home to be able to enjoy lush natural environment and the amenities of a modern city.
I became a home owne r in Lakewood Ranch an award winning 17,500 acre site that provides a beautiful master planned, maintained and golf community. Get the picture: blue waters, white sand, plenty of sun, blue skies, fabulous food, casual outdoor dining, amazing fishing, play golf, boat races, music and art festivals….
My focus is to best understand the goals and visions of my clients, ensuring all decisions are made with a wealth of information and the necessary tools for a successful, rewarding experience.
I have found my “Slice of Heaven” I look forward to you finding yours!