HOA vs CDD Fees in Spring Hill: What Buyers Should Know

Are you seeing both HOA dues and a CDD charge on a Spring Hill listing and wondering what they mean? You are not alone. Many Hernando County buyers are surprised to learn a home can have private HOA fees and public-style CDD assessments at the same time. In this guide, you will learn how each fee works, how they show up on tax bills and closing documents, what they might cost, and the local steps to confirm everything before you make an offer. Let’s dive in.

HOA vs CDD basics in Spring Hill

An HOA is a private association set up by recorded covenants. It runs the community’s rules and maintains common areas. Under Chapter 720 of the Florida Statutes, HOAs can set budgets, charge periodic assessments, and place liens if owners do not pay.

A CDD is different. A Community Development District is a local special-purpose unit of government created under Chapter 190 of the Florida Statutes. A CDD plans, finances, builds, and maintains infrastructure such as roads, stormwater systems, landscaping, and recreation facilities that serve the community.

Here is the key difference. HOA dues are private assessments owed to an association. CDD assessments are public, non-ad valorem assessments used to repay infrastructure costs and to fund the district’s ongoing operations. In Spring Hill, a property may be in an HOA, a CDD, both, or neither.

How fees are set and collected

How HOAs set and collect dues

• The HOA board sets the budget and divides costs among owners as monthly, quarterly, or annual dues.
• Dues usually cover maintenance of common areas, management, insurance for shared property, and reserves.
• HOAs can levy special assessments for big projects or unexpected repairs. The process is laid out in the community’s governing documents and Chapter 720.
• Collection is private. If you do not pay, the HOA can charge late fees and interest, record a lien, and pursue foreclosure through the courts.

How CDDs set and collect assessments

• The CDD board sets assessments to repay any bonds issued for infrastructure and to pay for operations and maintenance.
• Assessments are often billed once a year. Many districts place them on the county tax bill as non-ad valorem assessments.
• When included on the tax bill, they follow county tax collection rules under Chapter 197. Some CDDs may bill directly instead. Always check the property’s tax bill and the district’s documents.

Where fees show up when you buy

On the Hernando County tax bill

If a property is in a CDD that uses the tax roll, you will see a non-ad valorem line item on the Hernando County tax bill showing the district name or a special assessment label. That line is separate from regular ad valorem property taxes. HOA dues do not appear on the county tax bill.

In your title and closing documents

• HOA dues and any special assessments appear in the HOA estoppel or resale package. This package also shows transfer fees and any balances owed.
• CDD assessments may appear as a recorded lien if there are past-due amounts. The title commitment should flag recorded covenants and any district-related items.
• Your title and escrow team will request payoff or estoppel letters as needed to clear closing.

Billing frequency and proration

HOA dues are often paid monthly or quarterly. CDD assessments are usually annual, then prorated between buyer and seller at closing. If a CDD bills annually but your lender qualifies you monthly, the lender will convert the annual amount to a monthly equivalent.

What these fees mean for your budget

• Broad cost ranges vary by community. HOA dues in suburban Florida, including Spring Hill, commonly range from under 100 dollars per month to several hundred dollars per month depending on amenities and services. CDD assessments can range from a few hundred dollars per year to 1,000 to 4,000 dollars or more per year in master-planned communities that issued bonds. Treat these as general estimates only. Always rely on the actual community documents for exact amounts.
• Lenders typically include both HOA dues and CDD assessments in your housing cost for debt-to-income calculations. If a CDD is billed annually, your lender will divide it by 12 to get a monthly figure.
• Some loan programs have specific requirements for homes in CDDs. Tell your lender early if a property has a CDD so they can collect any needed documents.
• Some lenders may require an escrow for recurring property-related assessments. Ask your lender whether they will escrow for a CDD or HOA and how that changes your monthly payment.
• For taxes and accounting, CDD assessments are non-ad valorem charges. Deductibility can depend on the type of property and current federal tax rules. Consider speaking with a tax professional about your situation.

Local steps to verify in Hernando County

Use these steps to confirm fees on a Spring Hill property:

1. Ask early. Ask the seller or listing agent if the home is in an HOA or a CDD, or both.
2. Order title early. Have your title company issue a title commitment so you can review recorded covenants, district items, and any liens.
3. Check the tax bill. Review the Hernando County tax bill for non-ad valorem lines that indicate a CDD assessment. Confirm whether the district uses the county tax roll or bills separately.
4. Review parcel data. Look up the parcel record with the Hernando County Property Appraiser to see taxing authorities and community details.
5. Request HOA documents. Ask for the HOA resale package or estoppel, including current dues, special assessments, transfer fees, budget, and rules.
6. Request CDD documents. Ask the district manager for the latest assessment schedule, budget, any bond disclosures, and recent meeting minutes.
7. Contract protections. Include contingencies for reviewing HOA and CDD documents within the time frames in your purchase contract.
8. Lender review. Share HOA and CDD amounts with your lender so they can underwrite your loan correctly. Ask whether they will escrow.
9. Final closing check. Confirm all balances and prorations with the title company before your closing disclosure is issued.

Smart questions to ask before you buy

• Is this property in an HOA, a CDD, or both? What are the current dues and assessments?
• Are CDD assessments included on the Hernando County tax bill or billed directly?
• Are there any planned special assessments in the next one to five years for the HOA or the CDD?
• What is the HOA reserve fund status and have there been recent special assessments?
• What are the transfer fees, capital contributions, or estoppel fees due at closing?
• Who manages the HOA and the CDD, and can I get the latest financials and meeting minutes?
• How will my lender treat the HOA and CDD amounts for qualification and escrow?

Avoid surprises at closing

Transfer and estoppel fees

Many HOAs charge transfer or capital contribution fees when a home changes hands. There may also be an estoppel fee for the statement that shows the seller’s balance. Your title company will collect and disclose these amounts.

Special assessments

Both HOAs and CDDs can levy special assessments for capital projects. Ask for recent budgets and meeting minutes to see if any projects are planned.

Nonpayment consequences

Unpaid HOA dues can lead to late fees, interest, liens, and foreclosure actions under Chapter 720. Unpaid CDD assessments that appear on the county tax bill are enforced under Chapter 197, which can involve tax certificates and sale processes. If a CDD bills directly, it can record liens and pursue other remedies. Keep your accounts current to protect your property.

Newer vs older communities

Newer master-planned communities sometimes have higher CDD assessments because they issued bonds to build roads and amenities. Older neighborhoods without bond debt may have lower or no CDD charges. Always verify by reviewing the district assessment schedule and the tax bill.

Buying in Spring Hill with confidence

Understanding HOA and CDD fees helps you budget, compare homes fairly, and avoid surprises at closing. Your best move is to confirm the facts early. Review the tax bill, title commitment, HOA documents, and CDD schedules during your inspection period. Share the numbers with your lender so your loan reflects the full monthly cost.

If you want a clear path from first showing to closing day, our family team is here to help you verify every detail and make a confident decision in Spring Hill. Connect with The Kupres Group for local guidance and a smooth purchase from contract to keys.

FAQs

What is the difference between HOA dues and a CDD assessment in Spring Hill?

• HOA dues are private association fees under Chapter 720 for community operations and rules. CDD assessments are public, non-ad valorem charges under Chapter 190 that fund infrastructure and district operations.

How do CDD assessments appear on my Hernando County tax bill?

• If the district uses the county tax roll, you will see a separate non-ad valorem line identifying the district or assessment on the tax bill, apart from regular property taxes.

Do lenders count HOA and CDD amounts in my mortgage qualification?

• Yes. Lenders typically include recurring HOA dues and CDD assessments in your housing expense and convert annual CDD amounts into a monthly figure for debt-to-income.

Can HOAs or CDDs charge special assessments?

• Yes. HOAs can levy special assessments based on their governing documents and Chapter 720. CDDs can adjust assessments to meet bond and operating needs under Chapter 190.

What happens if I do not pay an HOA or CDD assessment?

• HOAs can charge late fees, place liens, and may foreclose through court action. CDD assessments on the tax roll follow county tax collection processes, which may include tax certificate sales. Districts that bill directly can record liens and use statutory remedies.

How can I confirm whether a Spring Hill property has an HOA or CDD?

• Ask the seller and agent, check the Hernando County tax bill for non-ad valorem lines, review the title commitment, and request the HOA resale package and CDD assessment schedule early in the process.