Are you comparing homes in Lake Nona and wondering why one has a CDD and another has just an HOA? You are not alone. Understanding how each fee works can change your monthly payment, your pre-approval amount, and even your resale strategy. In this guide, you will learn what CDD and HOA fees cover in the Lake Nona area, how they show up on your bill, how lenders treat them, and how to budget with confidence. Let’s dive in.
What is a CDD in Lake Nona?
A Community Development District (CDD) is a special-purpose local government created under Florida law to fund and maintain community infrastructure. Under Chapter 190, Florida Statutes, a CDD can issue bonds to build roads, water management systems, entry features, parks, and utilities. It then levies assessments on properties inside the district to repay those bonds and operate the district.
In Lake Nona, which is a large, master-planned area of Orlando, you may encounter a master-level CDD that supports shared infrastructure across neighborhoods. CDD assessments are mandatory if your property sits within the district. They are usually billed as non-ad valorem assessments and often appear on your county property tax bill (you can verify billing through the Orange County Tax Collector).
What is an HOA and how is it different?
A homeowners association (HOA) is a private association formed by the developer to operate and maintain common areas and amenities and to enforce community rules. HOA authority comes from the recorded governing documents (Declarations/CC&Rs and Bylaws) and is regulated by Florida’s HOA law, Chapter 720.
In Lake Nona, you may see a master association and a neighborhood sub-association. HOA dues are also mandatory if you own within the community, but they are invoiced by the association (monthly, quarterly, or annually) rather than added to your property tax bill.
Key differences at a glance
- Purpose and authority: A CDD is a governmental entity that finances and maintains infrastructure. An HOA is a private association that manages rules, common areas, and amenities.
- Where you see the fee: CDD assessments often show on the county tax bill as non-ad valorem charges. HOA dues are billed by the association and tracked on the association’s ledger.
- Duration: CDD bond repayment follows a set schedule, while annual maintenance assessments can adjust year to year. HOA dues can change per the governing documents and board decisions.
- Collection and enforcement: CDD assessments are governmental and have strong collection powers under Chapter 190. HOA dues are contractual and can become a lien if unpaid under Chapter 720.
How fees show up on your bill
- CDD assessments: Most Lake Nona CDDs place their assessments on your Orange County property tax bill as non-ad valorem charges. You can confirm whether a parcel has CDD assessments by reviewing the property’s tax bill or parcel record with the Orange County Property Appraiser and the Orange County Tax Collector.
- HOA dues: Your HOA or management company invoices these directly. They do not appear on the county tax bill. Title companies use association estoppel letters to confirm amounts and status at closing.
How to model your monthly payment
When you budget or seek pre-approval, include both CDD and HOA as recurring housing costs. This gives you a realistic monthly picture and helps you compare homes fairly.
Use this simple approach:
- Start with P&I: Your mortgage principal and interest.
- Add taxes and insurance: Divide annual property taxes by 12, and do the same for your homeowners insurance premium.
- Add HOA: If billed quarterly or annually, convert to a monthly equivalent.
- Add CDD: Divide the annual CDD assessment by 12 to get a monthly equivalent.
- Add MI/PMI if required: Include mortgage insurance if your loan program needs it.
Formula you can use:
- Total monthly housing cost = P&I + (Annual property tax / 12) + (Annual homeowners insurance / 12) + HOA monthly + (CDD annual / 12) + MI monthly
Escrow vs. paying separately:
- Some lenders escrow taxes, homeowners insurance, and recurring assessments that appear on the tax bill (which may include CDD). Others require you to pay certain items directly. Ask your lender for two views of your monthly payment: one if CDD is escrowed and one if you pay it separately. This makes cash flow clear.
How lenders treat CDD and HOA in pre-approval
Lenders count mandatory CDD and HOA charges as part of your housing expense when they calculate debt-to-income ratios. The exact documentation and treatment can vary by loan type and lender policy. If the CDD appears on the tax bill, documentation is often straightforward. For final underwriting, your lender will confirm how they treat both fees based on program rules.
Tip: Share the most recent tax bill, the HOA budget or invoice, and any CDD disclosures with your loan officer early. This helps you avoid surprises and keeps your pre-approval accurate.
Lifetime cost and resale impact
When you compare Lake Nona neighborhoods, look beyond the home price. Focus on total cost over time.
Consider:
- Ongoing annual costs: Taxes + insurance + HOA dues + CDD assessments.
- Long-term projections: Sum those annual costs across 5, 10, and 30 years, and include expected special assessments when known.
Resale considerations:
- Some buyers view CDD like a “tax” and compare total monthly cost across neighborhoods. Higher CDD assessments can narrow the buyer pool if the total payment feels high.
- On the other hand, CDDs fund infrastructure that many buyers value. Clear disclosures about the bond term, current assessments, and any planned changes help reduce friction at resale.
Buyer checklist for Lake Nona homes
Gather these documents during your due diligence:
- Seller disclosures that list all mandatory assessments.
- HOA estoppel letter showing dues, balances, and any planned special assessments.
- CDD budget, assessment schedule, and bond information.
- HOA governing documents (Declaration/CC&Rs, Bylaws, Rules), recent meeting minutes, and the reserve study if available.
- County property tax bill and parcel record to confirm non-ad valorem charges.
Where to check locally:
Smart questions to ask early
Ask the listing agent or association:
- Is there a CDD? If yes, what is the current annual amount and how is it billed?
- How many years remain on the CDD bond repayment schedule?
- Are any increases planned for CDD assessments or HOA dues?
- Does the HOA have a reserve study? Are any special assessments planned?
Ask your lender:
- Will the CDD (if on the tax bill) be escrowed with taxes and insurance?
- How will HOA dues and CDD be counted in my debt-to-income ratio?
- What documents do you need to underwrite these fees?
Lake Nona context you should know
Lake Nona is a master-planned area in Orlando with layered governance. It is common to have both a master-level special district (such as a CDD) and one or more HOAs. That means you might have a CDD assessment for infrastructure and an HOA due for amenities and maintenance. Always verify the exact combination and amounts for the specific property you are considering.
Move forward with clarity
Once you normalize HOA and CDD to monthly amounts, it becomes easier to compare homes and pick the best fit for your budget and lifestyle. If you want help modeling payments or gathering documents, connect with a local advisor who can coordinate both the real estate and loan details. As a bilingual broker and loan officer serving Orlando, I can guide you through pre-approval, due diligence, and closing so you feel confident from start to finish.
Ready to take the next step? Schedule a Free Consultation with Kriselys Tapia and get a clear plan for your Lake Nona purchase.
FAQs
What is the difference between a CDD and an HOA in Lake Nona?
- A CDD is a public entity that funds and maintains infrastructure using assessments authorized by Chapter 190, Florida Statutes, while an HOA is a private association that manages rules and amenities under Chapter 720.
How do I find the CDD amount for a Lake Nona property?
Do lenders include CDD and HOA in my pre-approval?
- Yes. Lenders generally include mandatory CDD and HOA charges in housing expense and debt-to-income ratios, with documentation and treatment confirmed during final underwriting.
Are CDD and HOA fees optional if I do not use amenities?
- No. If your property is within the district or association, both CDD assessments and HOA dues are mandatory regardless of amenity use.
Can CDD assessments change or end over time?
- Bond repayment follows a set schedule, but annual maintenance assessments can change; once bonds are repaid, some CDD costs may decrease, though districts can continue operations per statute.
Where do I see CDD assessments on my bill?
- Most appear on the county property tax bill as non-ad valorem assessments; verify through the Orange County Tax Collector or request the latest CDD assessment schedule.
