What Is The Difference Between Hoa And Cdd, Homeowners associations (HOAs) and community development districts (CDDs) are both commonly used in, General, what-is-the-difference-between-hoa-and-cdd, JPOSE
Homeowners associations (HOAs) and community development districts (CDDs) are both commonly used in planned residential communities. While they both serve similar functions, there are some key differences between the two.
An HOA is an organization that manages and maintains common areas and amenities within a community. HOAs are typically governed by a board of directors, which may be elected by the members of the community. Members of an HOA are required to pay fees, which are used to fund the maintenance and upkeep of the community. In exchange for these fees, members receive access to common areas and amenities, as well as the assurance that their community will be well-maintained.
A CDD, on the other hand, is a special purpose government entity that is created to finance and manage the infrastructure and amenities of a community. CDDs are typically established by developers, and are governed by a board of supervisors, who are appointed by the developer. Members of a CDD are required to pay fees, which are used to fund the construction and maintenance of infrastructure, such as roads, sidewalks, and utilities. In exchange for these fees, members receive access to the infrastructure and amenities provided by the CDD.
One key difference between HOAs and CDDs is the way in which they are governed. HOAs are typically governed by a board of directors, which may be elected by the members of the community. This gives members a greater degree of control over the management of their community. CDDs, on the other hand, are typically governed by a board of supervisors, who are appointed by the developer. This can lead to less direct control by community members over the management of the CDD.
Another key difference between HOAs and CDDs is the way in which they are funded. HOAs are funded through fees paid by members of the community, which are typically used to fund the maintenance and upkeep of common areas and amenities. CDDs, on the other hand, are funded through fees paid by members of the community, which are used to fund the construction and maintenance of infrastructure.
In conclusion, while HOAs and CDDs serve similar functions in planned residential communities, there are some key differences between the two. HOAs are typically governed by a board of directors elected by the members of the community, while CDDs are typically governed by a board of supervisors appointed by the developer. Additionally, HOAs are funded through fees paid by members of the community to fund the maintenance and upkeep of common areas and amenities, while CDDs are funded through fees paid by members of the community to fund the construction and maintenance of infrastructure.