Are you comparing Nocatee neighborhoods and wondering why some homes have both CDD and HOA fees? You are not alone. Understanding how each fee works can help you compare communities with confidence and avoid surprises at closing. In this guide, you will learn what CDD and HOA fees mean in Nocatee, what they typically cover, how to estimate your monthly cost, why fees vary by neighborhood, and what to review before you make an offer. Let’s dive in.
CDD vs HOA basics in Nocatee
A Community Development District, or CDD, is a special-purpose local government in Florida that plans, finances, builds, and maintains community infrastructure within its boundaries. It operates under Chapter 190 of the Florida Statutes and can issue bonds and levy non-ad valorem assessments to repay those bonds and fund operations.
A Homeowners’ Association, or HOA, is a private nonprofit created by recorded covenants that oversees community rules, operations, and certain common areas. Florida HOAs are primarily governed by Chapter 720 of the Florida Statutes and collect dues directly from owners.
CDD assessments are commonly listed on your St. Johns County property tax bill as a non-ad valorem special assessment. Some districts bill directly. HOA dues are billed by the association or its management company monthly, quarterly, or annually.
Community Development District (CDD)
- Public entity with an elected or developer-appointed board of supervisors.
- Funds and maintains infrastructure like stormwater systems, entry roads, and district-owned amenities such as parks, pools, and clubhouses.
- Uses assessments to cover bond debt service and operations/maintenance.
Homeowners’ Association (HOA)
- Private corporation run by a board elected by homeowners.
- Focuses on covenant enforcement, day-to-day amenity operations, common-area maintenance, insurance for common elements, and reserves.
- Bills dues on a set schedule and may levy special assessments if needed.
What each fee covers
What CDD typically funds
- Debt service on bonds used to build initial infrastructure and major amenities.
- Long-term maintenance of district-owned systems and improvements, including stormwater ponds and landscape buffers.
- Capital repairs and replacements for district-owned amenities.
- Professional services for district operations, such as management, engineering, legal, and field services.
What HOA typically funds
- Routine landscape care, common-area repairs, and any included services like trash or security if offered.
- Amenity operations and programming, including staffing and events.
- Insurance for common elements, admin expenses, and management fees.
- Reserve contributions for future repairs to items like roofs, pavement, and playgrounds.
How responsibilities are divided
In large master-planned communities like Nocatee, the CDD often financed and owns major amenities and infrastructure, while the HOA manages daily operations and covenant enforcement. The exact split is set by recorded documents and any agreements between the district and the association.
Estimate monthly costs
Step 1: Identify all assessments
- Ask the seller or listing agent for the current HOA dues and billing schedule.
- Confirm whether there is a master association fee in addition to a neighborhood HOA.
- Ask about any approved or pending special assessments.
- Review the current St. Johns County tax bill for CDD assessments tied to the parcel. If not on the tax roll, request the CDD’s adopted assessment roll from the district manager.
Step 2: Convert to a monthly number
For each line item, convert to a monthly equivalent so you can compare neighborhoods apples to apples.
- HOA dues (monthly): $_____
- Master HOA or amenity fee (monthly): $_____
- CDD assessment (annual on tax bill): $_____ ÷ 12 = $_____ per month
- Any special assessment or reserve holdback (annualized): $_____ ÷ 12 = $_____ per month
- Total estimated monthly for CDD + HOA: $_____
Step 3: Add likely ancillary costs
- Insurance differences that may relate to association coverage and amenities.
- Utilities that may or may not be included by the HOA.
- Any private services billed by the HOA, such as trash or security if applicable.
- One-time transfer or initiation fees due at closing.
Step 4: Verify with documents and tax bill
- Obtain the most recent HOA budget, reserve study, and recent board meeting minutes.
- Review the adopted CDD budget and assessment roll for the current year.
- Confirm whether any changes to assessments are planned.
Lender and escrow notes
Lenders often treat CDD assessments as recurring obligations if they appear on the tax bill. Some lenders may require proof of escrow or a certain number of months collected for HOA or CDD charges. Ask your lender early in the process.
Why fees vary in Nocatee
Age of development and bond status
Newer neighborhoods may carry higher CDD assessments if bonds used to build infrastructure are still outstanding. As bonds are paid down or improvements transfer, assessments can decline or end.
Amenity level and scope
Communities with more robust amenities, such as large pool complexes, staffed fitness centers, and extensive landscaping, tend to have higher HOA dues. If the CDD financed those amenities, CDD assessments may also be higher.
Parcel and product type
Assessment methods can differ by unit type, such as single-family homes versus townhomes or villas. Always confirm the per-parcel or per-unit amount on the assessment roll.
Master association vs neighborhood HOA
Some Nocatee addresses pay both a master association fee and a neighborhood HOA fee. Include both in your monthly estimate.
Control and reserve funding
Communities still under developer control can have different reserve policies than owner-controlled associations. Reserve strength affects the risk of special assessments.
Operations choices and insurance
Staffing levels, maintenance contracts, and insurance decisions all influence HOA dues. These choices appear in the HOA budget and meeting minutes.
Buyer due diligence checklist
Documents to request
- Current HOA dues schedule and what is included.
- HOA budgets for the current and most recent year.
- HOA reserve study or a written statement if none exists.
- Board meeting minutes from the last 6 to 12 months.
- Any approved or active special assessments, with purpose and payment schedule.
- Recorded CC&Rs and bylaws.
- Association manager contact for questions.
- CDD adopted budget and current assessment roll.
- Most recent property tax bill showing any CDD assessments.
- Any capital improvement plans or upcoming projects.
Questions to ask
- Is CDD bond debt still outstanding for this property, and if so, for how many years?
- Is there more than one CDD or more than one association fee for this parcel?
- Which amenities are owned by the CDD and which are operated by the HOA?
- Are dues increases or special assessments anticipated?
- Exactly what do HOA dues cover, including insurance, trash, security, landscaping, and staffing?
- Are reserves considered adequate based on the latest study, and is any maintenance deferred?
Where to confirm details
- St. Johns County Property Appraiser and Tax Collector for the current tax bill and assessments.
- Nocatee’s CDD or district manager for adopted budgets, agendas, and assessment schedules.
- Your title or closing agent for transfer fees, lien checks, and how assessments will be handled at closing.
Practical tips for Nocatee buyers
- Timing matters. CDD assessments are usually billed annually on the tax bill. HOA dues may be monthly, quarterly, or annually. Always convert everything to a monthly equivalent to compare homes.
- Plan for special assessments. Both CDDs and HOAs can levy additional charges for capital needs under different procedures. Review reserves and project plans to gauge risk.
- Keep resale and financing in mind. Total monthly cost, including mortgage, taxes, CDD, HOA, and insurance, affects both affordability and marketability.
- Look at trends. Ask for several years of HOA and CDD budgets and meeting minutes to understand how fees and projects are trending.
If you want a clean, side-by-side view of your shortlist in Nocatee, including CDD and HOA cost breakdowns, documents, and timing, reach out. With local expertise and a concierge approach, Holly Reaves can help you compare neighborhoods and buy with clarity.
FAQs
What is a CDD in Nocatee and how is it billed?
- A CDD is a local government that funds community infrastructure and amenities; assessments typically appear on the St. Johns County property tax bill as a non-ad valorem charge.
What does an HOA fee cover in Nocatee communities?
- HOA dues usually fund covenant enforcement, daily amenity operations, common-area upkeep, insurance for common elements, management, and reserves.
How do I estimate my total monthly cost in Nocatee?
- Convert every fee to a monthly amount, including HOA, any master association, the annual CDD assessment divided by 12, and any special assessments or included services.
Why do CDD and HOA fees differ between Nocatee neighborhoods?
- Fees vary based on bond status, amenity level, parcel type, whether there are master and neighborhood HOAs, reserve funding, and operational choices.
Can CDD or HOA fees increase after I buy in Nocatee?
- Yes, both can change; review budgets, reserve studies, meeting minutes, and planned projects to gauge the likelihood of increases or special assessments.
Where can I verify a property’s CDD assessment in St. Johns County?
- Check the most recent property tax bill for the parcel and request the adopted assessment roll or confirmation from the district manager if needed.
