What are HOA and CDD fees, and how much are they in Davenport, Kissimmee and Poinciana?

The HOA is the owners' association that bills its own dues and enforces the community's rules. The CDD is a public district that finances and maintains roads, water and common areas, and its charge is part of your property tax bill. Many newer communities have both, so get both numbers before you make an offer.

HOA and CDD fees in Davenport, Kissimmee and Poinciana, what they are and what they cost

An HOA and a CDD aren't the same thing

HOA (homeowners' association): a private association of the community's owners. It enforces the written rules (the covenants): paint, fences, vehicles, short-term rentals and more. It bills monthly, quarterly or yearly dues that you pay straight to the association. It can levy special assessments when needed.

CDD (community development district): a public district created under chapter 190 of the Florida Statutes. It finances and maintains the infrastructure of new communities: roads, water and sewer, drainage ponds, sometimes the clubhouse. It has its own board and a public budget. It doesn't issue building permits or enforce appearance rules.

How the CDD bills you

The CDD doesn't send its own bill. Its charge appears on your November property tax bill, in the flat-charge (non-ad valorem) section. It usually has two parts:

Operations and maintenance: pays for upkeep of the district's areas. The board sets it each year and it can change.
Debt service: pays off the bonds that built the infrastructure. It's billed every year until the bond is paid off. Some districts let you prepay your lot's share.

If your mortgage has an escrow account, the CDD is paid along with your taxes.

A real example: the Poinciana CDD

The Poinciana Community Development District, in Polk County, published its fiscal year 2027 adopted budget. For each residential lot, the tax bill shows:

$244.74 for operations and maintenance.
$374 for debt service on its 2022 bonds, with the final payment in May 2031. Lots that already prepaid that debt don't pay this part.

That's about $619 a year for a lot that hasn't prepaid. Other districts in Poinciana, Davenport or Kissimmee charge different amounts, sometimes much more in newly built communities. That's why you need the number for each home.

Why so many newer communities have both

Many new communities are going up around Davenport, ChampionsGate and Four Corners, Kissimmee and Poinciana. The builder often uses a CDD to pay for roads and utilities with bonds, and an HOA to handle the rules and private areas. So it's common to pay both: the HOA dues and the CDD charge on your tax bill.

What the law requires them to tell you

CDD: on the first sale of a home inside a CDD (buying from the builder), the contract must include a notice in large, bold type right before your signature saying the district may levy taxes or assessments on the property, on top of the county's.
HOA: before you sign, the seller (or builder) must give you an HOA disclosure summary. It says you'll have to pay dues that can change, that special assessments are possible and that not paying can lead to a lien on the home. If you didn't get it before signing, you can cancel the contract in writing within 3 days after receiving it or before closing, whichever comes first.
Estoppel certificate: requested from the HOA before closing. It shows what's owed in dues, upcoming dues and any open violations. The HOA has 10 business days to issue it, and it's good for 30 days (35 if mailed).

How to find a home's numbers

Tax bill: look up the address on the Polk or Osceola Tax Collector's site. Under the flat charges you'll see the CDD's name and what it billed last year.
The CDD's website: find the adopted budget. The per-lot assessment table shows how much is maintenance, how much is debt and until what year.
HOA documents: ask for the current dues, the budget, the rules and any approved special assessments.
Tax estimator: the Polk Property Appraiser has one; with the parcel number it includes the flat charges. See property taxes after you buy.

Questions to ask before you offer

How much are the HOA dues and what do they cover?
Is there a CDD? How much is maintenance and how much is debt?
What year does the CDD bond end? Can it be prepaid?
Are any special assessments approved or under discussion?
What are the rules for renting the home, parking or making changes?

Add the HOA dues and the CDD charge to your monthly payment before deciding how much to offer. See also closing costs in Florida.

This guide is general information, not legal advice. Read the community's documents and talk to an attorney if you have questions.