What is an HOA and CDD, and why does Arbor Greene have both?

Any private property matter dealing with community rules and regulations is managed by the HOA. Any public or common area matter, dealing with parks, ponds, roads, sidewalks, clubhouse, gates, gazebos, tennis courts, etc. is managed by the CDD.

Many homebuyers are familiar with the term “Home Owner’s Association,” or the acronym “HOA,” but are not always sure what it truly is or why it exists. We will briefly touch on what a HOA is and the original developer’s decision to create both a HOA and a Community Development District (“CDD”) in Arbor Greene.

When the initial developer establishes a community, the developer has the legal option to create rules and regulations governing the use of the property within that community, known as Deed Restrictions. The developer usually chooses to do this when creating a more exclusive community that is meant to preserve and enhance property values for homebuyers who are interested in establishing a longer term, well managed home investment. When the developer creates these rules and regulations, a Home Owner’s Association is established with a board of directors elected by the community to manage these rules and regulations. These rules and regulations, or Deed Restrictions, are known as Covenants, Conditions, and Restrictions (“CCRs”).

HOAs come in different shapes and sizes, and this is where confusion can begin. The basic management and enforcement of the community CCRs is typically turned over to a management company in order to maintain consistency and fairness in the management process. The HOA board of directors then oversees the management process and provides additional direction and guidance as needed by the community. The management company cost is then divided among the total number of homeowners to be paid as HOA fees.

If the initial developer is able to fully fund the entire construction of a community, including clubhouses, pools, roads, etc., the developer then includes the Operating and Maintenance (O&M) costs of the community amenities, as part of the overall HOA fees. This was NOT the case in Arbor Greene.

If the initial developer is unable to fully fund the entire construction of a community, the developer has the option of establishing a second governing body in the community; the CDD. Separate from the private property management responsibilities of an HOA, the developer establishes a CDD specifically to finance and manage the major infrastructure and amenities of a planned community. As with Arbor Greene, this allows a developer to create a more exclusive community with better amenities. The financing of the community infrastructure is usually paid using tax-free public bonds. When this is the case, separate taxes are then levied on homeowners to repay these public bonds. These taxes are separate from HOA fees and are usually included with annual property taxes, as is the case in Arbor Greene.

So, what does all of this mean to an Arbor Greene homeowner? Any private property matter dealing with CCRs is handled by the HOA. Any public area matter, dealing with parks, ponds, roads, sidewalks, clubhouse, gates, gazebos, tennis courts, etc. is managed by the CDD. The developer officially established the 2 separate organizations to provide total overall management of the community, from private property management (HOA) to public area operation and maintenance (CDD).

For more detailed and inclusive information regarding the HOA, please see the rules and regulations tab of this website or consider attending an upcoming HOA meeting.

For more detailed and inclusive information regarding the CDD and the public amenities that help to make our community one of the most beautiful resort-style living in Tampa, please see the Arbor Greene CDD homepage.