Community Development District (CDD) Representation
Specialized skills for special-purpose districts.
A community development district (CDD) is a special-purpose unit of local government that operates as an independent taxing district. A CDD is created under the Uniform Community Development Act of 1980, Chapter 190 of the Florida Statutes, as amended.
Many large-scale planned developments have incorporated a CDD into their overall financing structure through the issue of tax-exempt bonds for development improvements such as roads, sewer and water lines, storm water management systems and recreational amenities.
The CDD often provides the developer with the means to finance front-end capital expenditures at lower interest rates, as well as a more efficient method of paying operation and maintenance expenses within the development. However, a balance must be achieved so that excessive bond obligations are not passed on to property owners through annual capital assessments. The developer must determine the proper level of assessment so that it is acceptable to potential property owners and competitive with other competing projects.
SLC can assist our clients in selecting the right company to form and manage the district if they decide to pursue this option for their development. SLC has provided consulting services for numerous developments involving CDD bonds.