A CDD, or Community Development District, is a local unit of special-purpose government, established by Chapter 190 of the Florida Statute. CDDs do not have any regulatory powers as a county or city does. Instead, these zones are backed by a special-purpose bond that is established by the community’s developer. CDDs are a cost-effective way of financing the development of a new community’s services and initial infrastructures, like sewers, roads, water supply, grading, utilities, and recreational amenities.
The developer initially controls the CDD as the community is built. When community and resident ownership gets to a minimum threshold, residents become part of the CDD board. CDD fees are included in the tax bill as a separate entity.