Florida HOA CDD and Buyer Beware Info

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Never email or call a builder before you speak with a Real Estate Agent first. They must sign you in to the development. It is important you actually hire a Realtor to represent you in all real estate transactions so that they are representing your best interests and not the builder. Also the builder pays the Realtors to bring you to their communities because they want you to have the option of educated, non bias representation. Again please know the builder sales reps are NOT Realtors and are not there to protect you, but rather protect the builders interests.

HOA COMMUNITIES
The disclosure must be given to the Buyer(s) before a sales contract is executed. If it is not given until after contract execution by the Buyer(s), the Buyer(s) has the right to cancel the contract within 3 days of receipt of the disclosure, or prior to closing, whichever occurs first. You should be able to get these documents from your real estate agent HOA DISCLOSURE DOCUMENT VIEW HERE

BUYER BEWARE OF CDD communities.
Article from 2009 = An Orlando based Firm indicated that more than 10% of the CDDs in Florida did not fulfill their obligations. Defaults may mean even more of the costs will be passed on to homeowners.

Developer bankruptcies with CDDs. Developers need to maintain sufficient cash reserves to pay the CDD fees on the lots they own until they are sold to builders or homebuyers. The Florida Community Development District Report, published by Income Securities Advisors, which deals with corporate and municipal bond defaults, reports that 168 Florida CDDs have defaulted on $5.1 billion in bonds. ARTICLE ON CDD VIEW HERE

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Not sure how much they rose their fees but it was enough for my sister to begin the process of foreclosing on her house and for my friend to consider selling his. In fact, I know of two other neighborhoods in the Riverview and in Sun City who rose their CDD/HOA fees by a considerable amount the following year due to new homes not selling.

Just remember BOTH CDD and HOA are susceptible to rise. My sister and a friend both lives in two separate communities in which their CDD fees rose because either: a) new homes in the neighborhood stop selling and forced the developer to place the burden on other homeowners (my friend) or b) A lot in the community left due to foreclosures, thus the developer placed the burden on other homeowners (my sister). Also, expect up to a 3% annual rise for inflation. This has been consistent with my HOA.

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