DEFERENCE between an Hoa & a cdd
Fundamental Differences
YOUR HOA'S FOCUS IS ON MAINTAINING AND IMPROVING PRIVATE PROPERTY VALUES .
The Dupree Lakes Home Owners Association, Inc. was created pursuant to the provisions of Florida State Statutes 617 and 720 and elects a Board of Directors (5, for 1 year terms in the Fourth Quarter of each year at the Annual Membership meeting), that administer the operation of the entity, along with a contracted community management company. (Currently- EnProVera, LLC.) It is a non-profit, state incorporated entity whose purpose is to provide oversight of maintenance of the exterior of member’s properties, for the betterment of the community in total, including and primarily- private property values.
The HOA is administered by the Board under the authority of the official documents of the Association, (see via the Documents tab) ensuring the covenants and restrictions are adhered to regarding the appearance of the homes in the community, and it is funded by an annual assessment establish each year by the Board based on the approved budget for the coming year.
The Covenants, Conditions, and Restrictions (CC&Rs;) as well as supplementary documents such as the ARC Guideline define or suggest the limits of what a homeowner/renter may or may not do with the exterior of the home, lot and property. Further, toward the goal of maintaining and improving property values, fines may be levied by the Board against homeowners who don’t abide by the Official Documents. This could result in liens (and even foreclosure rulings) against homes for not correcting a violation after proper notification has been made by the Board/management company.
YOUR CDD'S FOCUS IS ON MAINTAINING AND IMPROVING THE DISTRICT'S COMMON GROUNDS.
The Dupree Lakes CDD (Community Development District) was created pursuant to the provisions of Florida State Statute Chapter 190. The District elects a Board of Supervisors (5, for 4 year terms) who administer the operation of the entity, along with a contracted community management company. It is a form of government entity whose purpose is to provide for ownership, operations, maintenance and provisions of various capital facilities (Common Grounds) such as Landscaping, Club House, Pool, Retention ponds, Wetland Areas and other amenities within the community.
FS 190 allowed the developer (Beazer Homes) to finance the costs of the Common Grounds through tax-free municipal bonds. Bonds are basically a type of loan. Those “loans” are repaid by the property owners in the community over a fixed period of time, (like a mortgage) with each property charged an annual amount. The advantage is the property purchaser gets to pay for the capital facilities over time at a typically lower interest rate than a mortgage, rather than as a part of the purchase price of the home. The amount (Annual Debt Assessment) is a part of the Non-Ad Valorem Tax on the homeowner's tax bill each year and is collected by the county tax collector. The balance of the N-AV Tax is the Budget for continued Operations and Maintenance (O&M) of the communities grounds. The bond portion has an end date similar to a mortgage. Once the bond is paid off, (and the individual home owners portion can be paid off at any time), it leaves only the O&M portion to pay each year.