CDD Fees

[Dan/Fla]

Ever had one of thoses days where you want to pull out your hair..

I did a review a couple of weeks ago and basically the report was good. The only comment I made was that the appraiser fail to mention the CDD fees. Since you have to pay these fees somewhat like the PUD fees. Noted they should be noted in the report, Even though I did note that these fees have no effect on value given in report since all comps used had same fees.

The appraiser responded back basically stating there is no such thing as a CCD fee, & I made it up, to make him look bad.

Sometimes you feel all alone out here not talking to other appraisers often. Am I the only one who mentions these fees and tries to explain to U/W what they are, on page 3?

I put this in Florida because I read that most states do not have it.

 

[Dennis J. Black ASA IFAS]

Dan,

Can you state exactly what you mean by CDD fee (or CCD fee, you used both terms).

 

[sos]

CDD-Community Development District

 

[sos]

CDD" - means a local unit of special-purpose government. A community development district may charge separate non-ad valorem special assessments for satisfying the debt obligations of the District related to financing, constructing, maintaining and servicing the District's improvements and/or services.

This is a developers way of not paying for the infrastructure with issuing 30 year bonds and having the homeowners pay for it.

Typically it is included in the PUD fee.

Jay

 

[Dan/Fla]

Here in this area the PUD fees and CDD fees are separate. The PUD fees are monthly and CDD fees I have seen are yearly. It seems they are always higher than the PUD fees. These fees are in appear to only be in newer developments.

These are for to plan, finance, construct and maintain the infrastructure and services & other.

I do not know this but I believe it a way a builder can lower the sales price of a home and PUD fees, or increase profit. Since buyers are lookin at the Home sale price and They know to asked about the PUD fees, however CDD fees seek up on them

 

[Dan/Fla]

To further explain I thought is best to note the basics I put in my own report to explain to the reader what a CDD is

CDD Fees: As Florida's population boomed, CDDs were created to shift the burden of building roads and utility lines away from cash-starved municipal and county governments. The massive costs of building the infrastructure are financed by the developer with a key CDD incentive: tax-free municipal bonds.

The bonds pay for not only roads and utilities, but also PUD amenities.

Rather than paying everything up front, homeowners pay the ultimate costs for the amenities over a span of 15 to 30 years.

A five-member CDD board, chosen by the developer, issues the bonds and levies taxes and assessments on the homeowners, who pay the added fees along with their county and city taxes. It is only when most of the homes in a development are sold, and all the crucial initial decisions have already been made, that homeowners can begin to sit on the board.

 

[Michael Tipton]

To further explain I thought is best to note the basics I put in my own report to explain to the reader what a CDD is

CDD Fees: As Florida's population boomed, CDDs were created to shift the burden of building roads and utility lines away from cash-starved municipal and county governments. The massive costs of building the infrastructure are financed by the developer with a key CDD incentive: tax-free municipal bonds.

The bonds pay for not only roads and utilities, but also PUD amenities.

Rather than paying everything up front, homeowners pay the ultimate costs for the amenities over a span of 15 to 30 years.

A five-member CDD board, chosen by the developer, issues the bonds and levies taxes and assessments on the homeowners, who pay the added fees along with their county and city taxes. It is only when most of the homes in a development are sold, and all the crucial initial decisions have already been made, that homeowners can begin to sit on the board.

Are the CDD fees billed separately or included in the local property tax bill in your market?

 

[Lax1]

Here's an example in Orange County for a property in Baldwin Park

Taxing Authority Taxable Value
Applied Millage (Tax)
Rate Applied Ad Valorem Taxes
Levied
Public Schools
By State Law (RLE) $103,488 4.9420 $511.44
By Local Board $103,488 2.1790 $225.50
Orange County (General) $103,488 4.4347 $458.94
Library - Operating Budget $103,488 .3748 $38.79
St Johns Water Management $103,488 .4158 $43.03
City Of Orlando $103,488 4.9307 $510.27
Millage Rate and Ad Valorem Tax Total 17.2770 $1,787.97

Non-Ad Valorem Assessments
Levying Authority Assessment Description Units Rate Assessment
City Of Orlando Orlando Storm - Drainage (407)246-2370 54.85 $1.00 $54.85
Urban Orlando Cdd-Cap 01 Urb Orl Cap 01 - Community Developmnt (407)382-3256 0 $1.00 $.00
Urban Orlando Cdd-Cap 04 Urb Orl Cap 04 - Community Developmnt (407)382-3256 708.78 $1.00 $708.78
Urban Orlando Cdd-Oper Urb Orl Cdd Opr - Community Developmnt (407)382-3256 360.42 $1.00 $360.42

Non-Ad Valorem Tax Total $1,124.05

Estimated Gross Tax Total $2,912.02

 

[Lax1]

Here's a good article on this:

http://www.apwa.net/Publications/Re...Y=ISSUE&ISSUE_DATE=042007&ARTICLE_NUMBER=1478

 

[Dennis J. Black ASA IFAS]

sos,

I know what the letters mean. I wanted to know what authority the CDD Dan was addressing has. The devil is in the details.