The FishHawk Ranch CDD
What is a CDD (Community Development District)?
A CDD or Community Development District is a governmental unit created to serve the long-term specific needs of a community. It is a method of financing, planning, acquiring, constructing, operating, and maintaining community-wide improvements and services for a community.
To finance the community infrastructure, the CDD issues what are called Special Assessment Revenue Bonds. Generally, the CDD assess each property owner a yearly capital debt service assessment to pay back those bonds. In the case of the CDD, a significant portion of this capital assessment will be prepaid by the developer at the time of closing. Typically the bonds are paid back by the property owners over either a 20 or 30-year time frame. Most of the bonds are for a 3o year time frame now.
What Does the CDD in FishHawk Ranch Do?
The CDD offers FishHawk Ranch and its residents a broad range of community-related services and essential infrastructure. This infrastructure enables FishHawk Ranch to provide its residents with the best quality of life possible. In general, a CDD is responsible for items like stormwater management, potable and irrigation water supply, sewer, and street lights.
How Does the CDD Operate?
The Fishhawk Ranch CDD’s are organized like other local governments in Florida. It has a legislative body that is composed of a five-member board known as the Board of Supervisors. The Board establishes the policy of the District in accordance with Florida law. The Board, by law, must hire a District Administrator and District Counsel. Staff members operate utilizing the same formalities as a County Administrator and County Attorney. The Board, through review of advertised Requests for Qualifications, ranks and selects a District Engineer to perform the engineering needs of the District. District Administration staff and the District Attorney administer the operations of the District and implement the Board’s policies and contracts. The CDD’s business is conducted in the “Sunshine,” which means all meetings and records are open to the public. Public hearings are held on CDD assessments, and the CDD’s budget is subject to annual independent audit.
The FishHawk Ranch CDD uses District Management the District Manager’s responsibilities include:
- Preparation and submittal of proposed operations and maintenance budgets for Board review and action
- Preparation of contract specifications for District operations, including community appearance, waterway management, street lighting, and facilities maintenance
- File all required forms and documents with state and local agencies
- Attend all Board of Supervisor meetings – implement the policies of the Board
- Additional duties as directed by the Board
CDD Benefits to FishHawk Ranch
The FishHawk Ranch community and its residents receive three major classes of benefits from the CDD. First, the CDD provides landowners with consistently high levels of public facilities and services managed and financed through self-imposed fees and assessments. Second, the CDD ensures that these community development facilities and services will be completed concurrently with other parts of the development. Third, CDD landowners and electors choose the Board of Supervisors, which can determine the type, quality, and expense of CDD facilities and services.
The CDD can save FishHawk Ranch money because the CDD is subject to the same laws and regulations that apply to other government entities. The CDD can borrow money at lower, tax-exempt interest rates just like cities and counties. It also publicly advertises its contracts for goods and services, such as its maintenance contracts, therefore creating a competitive bidding environment.
How Much Does The CDD Cost?
The CDD is an annual fee that varies depending on your location in FishHawk Ranch. Compared to other communities, the FishHawk Ranch CDD is very reasonable, especially with all the fantastic amenities the community has to offer.
In general, the cost of the CDD runs between $1000 to $3000 per year, depending on the location of your home. To find out exactly how much the CDD is for a specific property, contact me. Or feel free to head over to the Hillsborough County Property Appraiser Website, enter the address, enter the Tax Records and View the Annual Bill. Under Non-Ad Valorem Assessments, you will see a line the will read something like FISHHAWK II CDD and amount. This amount is the annual CDD amount for the property. Because it is a Non-Ad Valorem assessment, it is generally paid with your mortgage and could be tax-deductible. Please consult your tax advisor for details.
Real CDD Example
We can use my FishHawk Ranch CDD as an example. I am in FishHawk Ranch CDD II, and my home was built in 2005. My total CDD is $1196.29 per year. My bond matures on May 1, 2034. The CDD payment breaks down as follows:
- Debt Service: $388.28 per year
- Operations and Maintenance: $808.01 per year. (this amount can fluctuate on an annual basis based on the community budget).
After the bond matures, my yearly CDD payment will drop to $808.01 per year.
Additional Information About FishHawk Ranch Costs and Fees
If you have any questions about FishHawk Ranch or the FishHawk Ranch CDD please feel free to contact me.