{"id":101223,"date":"2026-04-14T13:32:50","date_gmt":"2026-04-14T20:32:50","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=101223"},"modified":"2026-04-15T11:29:27","modified_gmt":"2026-04-15T18:29:27","slug":"hoa-versus-cdd-why-understand-the-difference","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/","title":{"rendered":"HOA vs. CDD: Why You Need To Understand the Difference"},"content":{"rendered":"<p><b>Key takeaways<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>CDD vs. HOA comes down to purpose<\/b><span style=\"font-weight: 400;\">: HOAs manage community standards and amenities, while CDDs fund and maintain core infrastructure like roads and utilities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fees are structured differently<\/b><span style=\"font-weight: 400;\">: HOA dues are paid regularly, while CDD vs. HOA costs differ because CDD fees are typically billed alongside your property taxes as non-<\/span><i><span style=\"font-weight: 400;\">ad valorem<\/span><\/i><span style=\"font-weight: 400;\"> assessments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You can have both in one community<\/b><span style=\"font-weight: 400;\">: many newer neighborhoods include both, meaning homeowners pay HOA dues alongside CDD-related property tax assessments.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Imagine discovering your ideal home: The layout suits your lifestyle, the location meets all your criteria, and then unexpected fees and rules emerge. It\u2019s a common moment for buyers, and it often comes down to two terms you may not fully understand yet: HOA and CDD.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While both are tied to community living, <\/span><a href=\"https:\/\/www.redfin.com\/blog\/what-is-an-hoa\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">homeowners associations (HOAs)<\/span><\/a><span style=\"font-weight: 400;\"> and community development districts (CDDs) serve different purposes. Understanding how each operates, what it manages, how it is funded, and who oversees it can help you plan and avoid surprises after closing.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">No matter where you choose to live, having a clear grasp of HOA and CDD structures makes it easier to budget accurately, anticipate costs, and understand exactly what you are paying for <\/span><span style=\"font-weight: 400;\">\u2013 <\/span><span style=\"font-weight: 400;\">from shared amenities to long-term infrastructure <\/span><span style=\"font-weight: 400;\">\u2013 <\/span><span style=\"font-weight: 400;\">so you can select a community that fits your priorities and financial plans.<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-101225\" src=\"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283.jpg\" alt=\"Aerial view of a planned suburban residential neighborhood with numerous modern houses and green lawns, representing communities that may be governed by both CDD and HOA regulations, with a tilt-shift effect making the scene appear miniature.\" width=\"1200\" height=\"800\" srcset=\"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283.jpg 1200w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283-300x200.jpg 300w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283-1024x683.jpg 1024w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283-768x512.jpg 768w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283-225x150.jpg 225w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283-945x630.jpg 945w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283-450x300.jpg 450w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">CDD vs. HOA<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While homeowners associations (HOAs) and community development districts (CDDs) both support residential communities, they serve different roles and operate under distinct structures.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An HOA is a private organization, typically established by a developer or by residents, that manages shared spaces and enforces community standards. For example, an HOA may handle landscaping at neighborhood entrances, maintain a community pool and clubhouse, and set guidelines for exterior paint colors or fence styles. Homeowners typically pay recurring dues <\/span><span style=\"font-weight: 400;\">\u2013 <\/span><span style=\"font-weight: 400;\">either monthly or annually <\/span><span style=\"font-weight: 400;\">\u2013 <\/span><span style=\"font-weight: 400;\">to fund these services.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A CDD, by contrast, is a public entity created by a local government to finance and build essential infrastructure in larger developments. For instance, a CDD may fund the construction of neighborhood roads, water and sewer systems, sidewalks, and stormwater drainage. Instead of monthly dues, these costs are repaid over time through annual assessments that appear on a homeowner\u2019s property tax bill.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In many newer communities, both entities are in place. The CDD helps build the neighborhood from the ground up, while the HOA maintains it once residents move in.<\/span><\/p>\n<blockquote><p><a href=\"https:\/\/www.redfin.com\/real-estate-agents\/ashley-patton\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Ashley Patton<\/span><\/a><span style=\"font-weight: 400;\">, a <\/span><a href=\"https:\/\/www.redfin.com\/city\/30844\/TX\/Frisco\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Redfin Texas<\/span><\/a><span style=\"font-weight: 400;\"> real estate agent, explains: \u201cIt\u2019s common for a home to have both. In many newer subdivisions, homeowners pay an HOA fee separately from their property tax bill, while CDD costs are included in property taxes, often as part of <\/span><a href=\"https:\/\/www.redfin.com\/blog\/what-is-a-mud-in-real-estate\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Municipal Utility District (MUD)<\/span><\/a><span style=\"font-weight: 400;\"> or <\/span><a href=\"https:\/\/www.redfin.com\/blog\/what-is-a-pid-in-real-estate\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Public Improvement District (PID)<\/span><\/a><span style=\"font-weight: 400;\"> assessments. When I work with buyers, I ask for loan estimates based on improved taxes, along with a clear breakdown of the CDD\u2019s cost and expected timeline.\u201d<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Because HOAs typically cover amenities and community rules, while CDDs fund infrastructure and utilities, understanding both is important. They can have a meaningful impact on your monthly budget. You can compare the HOA to a student council: Getting involved helps you stay informed about current decisions and potential future assessments.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">HOA vs. CDD at a glance<\/span><\/h2>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Feature<\/b><\/td>\n<td><b>HOA<\/b><\/td>\n<td><b>CDD<\/b><\/td>\n<\/tr>\n<tr>\n<td><i><span style=\"font-weight: 400;\">Purpose<\/span><\/i><\/td>\n<td><span style=\"font-weight: 400;\">Maintains community and amenities<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Funds infrastructure and development<\/span><\/td>\n<\/tr>\n<tr>\n<td><i><span style=\"font-weight: 400;\">Fees<\/span><\/i><\/td>\n<td><span style=\"font-weight: 400;\">Monthly, quarterly, or annual dues<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Annual assessment of property taxes<\/span><\/td>\n<\/tr>\n<tr>\n<td><i><span style=\"font-weight: 400;\">What you pay for<\/span><\/i><\/td>\n<td><span style=\"font-weight: 400;\">Landscaping, amenities, upkeep<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Roads, utilities, drainage systems<\/span><\/td>\n<\/tr>\n<tr>\n<td><i><span style=\"font-weight: 400;\">Duration<\/span><\/i><\/td>\n<td><span style=\"font-weight: 400;\">Ongoing for the life of the HOA<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Typically long-term, may eventually end<\/span><\/td>\n<\/tr>\n<tr>\n<td><i><span style=\"font-weight: 400;\">Governance<\/span><\/i><\/td>\n<td><span style=\"font-weight: 400;\">Homeowner-elected board<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Starts developer-controlled, transitions<\/span><\/td>\n<\/tr>\n<tr>\n<td><i><span style=\"font-weight: 400;\">Buyer impact<\/span><\/i><\/td>\n<td><span style=\"font-weight: 400;\">Predictable dues + possible assessments<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Higher taxes, long-term obligation<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">Understanding HOAs: What do you need to know?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Jordan Lulich, Esquire, a real estate attorney with<\/span><a href=\"https:\/\/www.lulich.com\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"external noopener noreferrer\"> <span style=\"font-weight: 400;\">Lulich and Attorneys<\/span><\/a><span style=\"font-weight: 400;\"> in Florida, explains that HOAs are private entities governed by a homeowner-elected board of directors. In states like Florida,<\/span><a href=\"https:\/\/www.redfin.com\/\" data-wpel-link=\"exclude\"> <span style=\"font-weight: 400;\">Florida HOA laws<\/span><\/a><span style=\"font-weight: 400;\"> under Chapter 720 of the Florida Statutes set strict standards for transparency and homeowner rights<\/span><span style=\"font-weight: 400;\">,<\/span><span style=\"font-weight: 400;\">giving these rules real legal weight.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">HOAs are responsible for maintaining common areas and enforcing community standards, from landscaping and pools to clubhouses and bylaws. They are funded through regular assessments <\/span><span style=\"font-weight: 400;\">\u2013<\/span><span style=\"font-weight: 400;\"> paid monthly, quarterly, or annually <\/span><span style=\"font-weight: 400;\">\u2013<\/span><span style=\"font-weight: 400;\"> that cover operational costs, reserve funds for major repairs, and in some cases, special assessments for unexpected expenses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Governance is resident-driven. Homeowners elect a board of directors that oversees budgets, rules, and community decisions, giving residents a direct voice in how their neighborhood is managed.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-101226\" src=\"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-19-PM-9525.jpg\" alt=\"A person's hand, possibly a real estate agent's, hands over a house-shaped keychain to another person's hand, symbolizing homeownership and the transfer of property, which often involves understanding the differences between HOA vs CDD regulations in new communities. A smiling person is blurred in the background.\" width=\"1200\" height=\"800\" srcset=\"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-19-PM-9525.jpg 1200w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-19-PM-9525-300x200.jpg 300w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-19-PM-9525-1024x683.jpg 1024w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-19-PM-9525-768x512.jpg 768w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-19-PM-9525-225x150.jpg 225w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-19-PM-9525-945x630.jpg 945w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-19-PM-9525-450x300.jpg 450w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h3><span style=\"font-weight: 400;\">What to know about HOA fees<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">HOA fees are used to maintain and support the shared aspects of a community. These dues often cover everyday expenses such as landscaping, insurance for common areas, water, trash pickup, and general maintenance or repairs. In some cases, they may also include property taxes tied to shared spaces such as clubhouses or green areas.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Beyond routine dues, an HOA may issue a special assessment <\/span><span style=\"font-weight: 400;\">\u2013 <\/span><span style=\"font-weight: 400;\">a one-time fee charged to homeowners when unexpected or significant expenses arise, such as major repairs or replacement projects not fully covered by the regular budget.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">HOA fees are typically paid separately from your mortgage. Depending on the community, payments may be due monthly, quarterly or annually, so it\u2019s important to understand the schedule when planning your budget.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Can you refuse to pay an HOA increase?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you believe an increase in HOA dues or specific fees is unjustified or does not align with the HOA\u2019s governing documents, you can challenge it. This process typically involves following procedures outlined by the HOA. These may include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Engaging in discussions with the HOA board or management<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Seeking mediation to resolve the dispute<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bringing the issue to a vote among other HOA members<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Decoding Community Development Districts (CDDs) in real estate<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Stepping into a different realm, a community development district (CDD) is a special-purpose governmental entity. Unlike HOAs, CDDs are typically created to finance and manage the infrastructure of new communities. This includes essential elements such as roads, utilities, stormwater management systems and, in some cases, recreational amenities.<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">As Karrie Hill, JD, co-team leader with <\/span><a href=\"https:\/\/smartagentalliance.com\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"external noopener noreferrer\"><span style=\"font-weight: 400;\">Smart Agent Alliance<\/span><\/a><span style=\"font-weight: 400;\">, explains: \u201cCDDs are public districts created by developers to build and maintain infrastructure such as roads, utilities, and stormwater systems through municipal bonds. Homeowners repay those bonds over decades through annual assessments added to their property tax bill. Think of CDDs as the financing and management engine that made your neighborhood possible.\u201d<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">The funding mechanism for CDDs in real estate transactions\u00a0 is distinct. They are primarily financed through <\/span><i><span style=\"font-weight: 400;\">non-ad valorem<\/span><\/i><span style=\"font-weight: 400;\"> assessments on property owners. These assessments are not based on the value of your property but rather on the benefits received from the infrastructure. CDDs issue bonds to finance these large-scale projects, and the costs are then passed on to residents through these assessments. A key takeaway is that CDD fees are often included directly in your property tax bill, making them a less obvious but significant ongoing expense.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In terms of governance, CDDs begin with a board of directors controlled by the developer. As the community matures and more homes are sold, control of the board typically transitions to residents. It is important to note that CDDs operate under state law and possess certain governmental powers, which differ from the private nature of an HOA.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What to know about CDD fees<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Community Development District (CDD) fees help fund both the lifestyle and infrastructure of a neighborhood. These fees often support shared amenities like community pools, parks, and playgrounds, while also covering essential systems such as roads, sidewalks, sewer, and water services.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ongoing maintenance of these spaces is included as well, helping keep the community functional and well cared for over time. Homeowners typically pay CDD fees as part of their annual property tax bill, and in many cases, these fees may have at least limited deductability, offering some financial offset.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Is it common for a single property to fall under both a CDD and an HOA?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, and when it happens, the financial and governance implications are worth understanding before you buy. You will pay both, but they function differently <\/span><span style=\"font-weight: 400;\">\u2013<\/span><span style=\"font-weight: 400;\"> HOA fees are ongoing for the life of the association, while CDD fees are tied to bond debt, carry a defined lifespan, and automatically transfer to the new owner when the property is sold. At their core, an HOA manages day-to-day community standards and amenities, while a CDD finances the foundational infrastructure that made the neighborhood possible.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The costs can add up quickly. CDD fees appear on top of your regular property taxes and any HOA dues, making them easy to overlook until after closing. CDD debt can also last decades, meaning you are taking on that obligation for the life of the bond. Your level of influence differs too <\/span><span style=\"font-weight: 400;\">\u2013<\/span><span style=\"font-weight: 400;\"> HOA boards are elected by homeowners, while CDD boards begin under developer control before transitioning to residents over time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Real estate agents and sellers are often required to disclose the existence of both HOAs and CDDs when a property is listed, so don&#8217;t hesitate to ask for a full breakdown upfront. Always review your title policy carefully to confirm whether your property falls under one or both before signing anything.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Which one is better? The buyer&#8217;s due diligence<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There is no definitive \u201cbetter\u201d option between an HOA and a CDD; they serve different purposes in the real estate world. The key is understanding what each entails for your financial obligations and level of community involvement. Prospective homebuyers should conduct thorough due diligence when considering a property within a community that has either or both.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By understanding the key distinctions between HOAs and CDDs, you can make informed decisions. Do not hesitate to ask detailed questions about community fees, governance structures, and long-term financial obligations. Use this quick checklist to guide your review:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What are the monthly or annual fees, and how often can they increase?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What services and amenities are included?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Who governs the community, and how are decisions made?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are there additional assessments or long-term debt obligations?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What rules or restrictions could affect your lifestyle?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Seeking clarification helps ensure you are comfortable with every aspect of your potential new home and can prevent unexpected burdens down the line.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What\u2019s next?\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you want to know more about the <\/span><a href=\"https:\/\/www.redfin.com\/guides\/buy\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">homebuying process<\/span><\/a><span style=\"font-weight: 400;\">, this Redfin article is for you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Gain expert insights, essential tips, and the confidence to navigate the real estate market like a pro with <\/span><a href=\"https:\/\/www.redfin.com\/guides\/buy\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Redfin\u2019s Homebuying Guide<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Don&#8217;t let unexpected fees catch you off guard. Learn the crucial differences between HOA vs CDD fees, funding, and governance before buying your next home.<\/p>\n","protected":false},"author":813,"featured_media":101225,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[34276,34277],"tags":[36518,3621,36517,33478],"coauthors":[36372],"class_list":["post-101223","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-home","category-finance","tag-cdd","tag-finance","tag-hoa","tag-homebuying"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v28.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>HOA vs. CDD: Why you need to understand the difference - Redfin<\/title>\n<meta name=\"description\" content=\"Understand the vital differences between HOA vs. CDD fees, funding, and governance to make informed homebuying decisions and avoid financial surprises.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"HOA vs. CDD: Why You Need To Understand the Difference\" \/>\n<meta property=\"og:description\" content=\"Understand the vital differences between HOA vs. CDD fees, funding, and governance to make informed homebuying decisions and avoid financial surprises.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/\" \/>\n<meta property=\"og:site_name\" content=\"Redfin | Real Estate Tips for Home Buying, Selling &amp; More\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/redfin\" \/>\n<meta property=\"article:published_time\" content=\"2026-04-14T20:32:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-15T18:29:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jasica Usman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@redfin\" \/>\n<meta name=\"twitter:site\" content=\"@redfin\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jasica Usman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/hoa-versus-cdd-why-understand-the-difference\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/hoa-versus-cdd-why-understand-the-difference\\\/\"},\"author\":{\"name\":\"Jasica Usman\",\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/#\\\/schema\\\/person\\\/437e6bfb06e9766e6bb78c6c25e6128a\"},\"headline\":\"HOA vs. CDD: Why You Need To Understand the Difference\",\"datePublished\":\"2026-04-14T20:32:50+00:00\",\"dateModified\":\"2026-04-15T18:29:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/hoa-versus-cdd-why-understand-the-difference\\\/\"},\"wordCount\":1734,\"publisher\":{\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/hoa-versus-cdd-why-understand-the-difference\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.redfin.com/blog\\\/wp-content\\\/uploads\\\/2025\\\/05\\\/MixCollage-28-May-2025-03-15-PM-1283.jpg\",\"keywords\":[\"CDD\",\"Finance\",\"HOA\",\"Homebuying\"],\"articleSection\":[\"Buying a Home\",\"Finance\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2026\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/hoa-versus-cdd-why-understand-the-difference\\\/\",\"url\":\"https:\\\/\\\/www.redfin.com/blog\\\/hoa-versus-cdd-why-understand-the-difference\\\/\",\"name\":\"HOA vs. CDD: Why you need to understand the difference - Redfin\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/hoa-versus-cdd-why-understand-the-difference\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/hoa-versus-cdd-why-understand-the-difference\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.redfin.com/blog\\\/wp-content\\\/uploads\\\/2025\\\/05\\\/MixCollage-28-May-2025-03-15-PM-1283.jpg\",\"datePublished\":\"2026-04-14T20:32:50+00:00\",\"dateModified\":\"2026-04-15T18:29:27+00:00\",\"description\":\"Understand the vital differences between HOA vs. CDD fees, funding, and governance to make informed homebuying decisions and avoid financial surprises.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/hoa-versus-cdd-why-understand-the-difference\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.redfin.com/blog\\\/hoa-versus-cdd-why-understand-the-difference\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/hoa-versus-cdd-why-understand-the-difference\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.redfin.com/blog\\\/wp-content\\\/uploads\\\/2025\\\/05\\\/MixCollage-28-May-2025-03-15-PM-1283.jpg\",\"contentUrl\":\"https:\\\/\\\/www.redfin.com/blog\\\/wp-content\\\/uploads\\\/2025\\\/05\\\/MixCollage-28-May-2025-03-15-PM-1283.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Aerial view of a planned suburban residential neighborhood with numerous modern houses and green lawns, representing communities that may be governed by both CDD and HOA regulations, with a tilt-shift effect making the scene appear miniature.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/hoa-versus-cdd-why-understand-the-difference\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.redfin.com/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"HOA vs. CDD: Why You Need To Understand the Difference\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.redfin.com/blog\\\/\",\"name\":\"Redfin | Real Estate Tips for Home Buying, Selling &amp; More\",\"description\":\"Real estate on Wall Street, Main Street and your street.\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.redfin.com/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/#organization\",\"name\":\"Redfin\",\"url\":\"https:\\\/\\\/www.redfin.com/blog\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.redfin.com/blog\\\/wp-content\\\/uploads\\\/2020\\\/03\\\/Redfin-logo-512x512-1.jpg\",\"contentUrl\":\"https:\\\/\\\/www.redfin.com/blog\\\/wp-content\\\/uploads\\\/2020\\\/03\\\/Redfin-logo-512x512-1.jpg\",\"width\":512,\"height\":512,\"caption\":\"Redfin\"},\"image\":{\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/redfin\",\"https:\\\/\\\/x.com\\\/redfin\",\"https:\\\/\\\/www.instagram.com\\\/redfinrealestate\\\/\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/redfin\",\"https:\\\/\\\/www.pinterest.com\\\/redfin\\\/\",\"https:\\\/\\\/www.youtube.com\\\/channel\\\/UCMIuo1QSGcmWnevT9jdC_Ow\",\"https:\\\/\\\/en.wikipedia.org\\\/wiki\\\/Redfin\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.redfin.com/blog\\\/#\\\/schema\\\/person\\\/437e6bfb06e9766e6bb78c6c25e6128a\",\"name\":\"Jasica Usman\",\"description\":\"Jasica is a seasoned content marketer at Redfin with over five years of real estate experience. A licensed agent in Texas, she is an expert in making offers and negotiation strategies. Based in Dallas, Jasica is passionate about helping people make informed decisions. As a trusted voice at Redfin, her articles and campaigns guide buyers and sellers through the complexities of making an offer. Her ultimate goal is to empower everyone to achieve their dream of homeownership. In her free time, she loves new custom-built homes\u2014especially those with massive closets.\",\"url\":\"https:\\\/\\\/www.redfin.com/blog\\\/author\\\/jasica-usman\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"HOA vs. CDD: Why you need to understand the difference - Redfin","description":"Understand the vital differences between HOA vs. CDD fees, funding, and governance to make informed homebuying decisions and avoid financial surprises.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/","og_locale":"en_US","og_type":"article","og_title":"HOA vs. CDD: Why You Need To Understand the Difference","og_description":"Understand the vital differences between HOA vs. CDD fees, funding, and governance to make informed homebuying decisions and avoid financial surprises.","og_url":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/","og_site_name":"Redfin | Real Estate Tips for Home Buying, Selling &amp; More","article_publisher":"https:\/\/www.facebook.com\/redfin","article_published_time":"2026-04-14T20:32:50+00:00","article_modified_time":"2026-04-15T18:29:27+00:00","og_image":[{"width":1200,"height":800,"url":"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283.jpg","type":"image\/jpeg"}],"author":"Jasica Usman","twitter_card":"summary_large_image","twitter_creator":"@redfin","twitter_site":"@redfin","twitter_misc":{"Written by":"Jasica Usman","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/#article","isPartOf":{"@id":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/"},"author":{"name":"Jasica Usman","@id":"https:\/\/www.redfin.com\/blog\/#\/schema\/person\/437e6bfb06e9766e6bb78c6c25e6128a"},"headline":"HOA vs. CDD: Why You Need To Understand the Difference","datePublished":"2026-04-14T20:32:50+00:00","dateModified":"2026-04-15T18:29:27+00:00","mainEntityOfPage":{"@id":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/"},"wordCount":1734,"publisher":{"@id":"https:\/\/www.redfin.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/#primaryimage"},"thumbnailUrl":"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283.jpg","keywords":["CDD","Finance","HOA","Homebuying"],"articleSection":["Buying a Home","Finance"],"inLanguage":"en-US","copyrightYear":"2026","copyrightHolder":{"@id":"https:\/\/www.redfin.com\/blog\/#organization"}},{"@type":"WebPage","@id":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/","url":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/","name":"HOA vs. CDD: Why you need to understand the difference - Redfin","isPartOf":{"@id":"https:\/\/www.redfin.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/#primaryimage"},"image":{"@id":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/#primaryimage"},"thumbnailUrl":"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283.jpg","datePublished":"2026-04-14T20:32:50+00:00","dateModified":"2026-04-15T18:29:27+00:00","description":"Understand the vital differences between HOA vs. CDD fees, funding, and governance to make informed homebuying decisions and avoid financial surprises.","breadcrumb":{"@id":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/#primaryimage","url":"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283.jpg","contentUrl":"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2025\/05\/MixCollage-28-May-2025-03-15-PM-1283.jpg","width":1200,"height":800,"caption":"Aerial view of a planned suburban residential neighborhood with numerous modern houses and green lawns, representing communities that may be governed by both CDD and HOA regulations, with a tilt-shift effect making the scene appear miniature."},{"@type":"BreadcrumbList","@id":"https:\/\/www.redfin.com\/blog\/hoa-versus-cdd-why-understand-the-difference\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.redfin.com\/blog\/"},{"@type":"ListItem","position":2,"name":"HOA vs. CDD: Why You Need To Understand the Difference"}]},{"@type":"WebSite","@id":"https:\/\/www.redfin.com\/blog\/#website","url":"https:\/\/www.redfin.com\/blog\/","name":"Redfin | Real Estate Tips for Home Buying, Selling &amp; More","description":"Real estate on Wall Street, Main Street and your street.","publisher":{"@id":"https:\/\/www.redfin.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.redfin.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.redfin.com\/blog\/#organization","name":"Redfin","url":"https:\/\/www.redfin.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.redfin.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2020\/03\/Redfin-logo-512x512-1.jpg","contentUrl":"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2020\/03\/Redfin-logo-512x512-1.jpg","width":512,"height":512,"caption":"Redfin"},"image":{"@id":"https:\/\/www.redfin.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/redfin","https:\/\/x.com\/redfin","https:\/\/www.instagram.com\/redfinrealestate\/","https:\/\/www.linkedin.com\/company\/redfin","https:\/\/www.pinterest.com\/redfin\/","https:\/\/www.youtube.com\/channel\/UCMIuo1QSGcmWnevT9jdC_Ow","https:\/\/en.wikipedia.org\/wiki\/Redfin"]},{"@type":"Person","@id":"https:\/\/www.redfin.com\/blog\/#\/schema\/person\/437e6bfb06e9766e6bb78c6c25e6128a","name":"Jasica Usman","description":"Jasica is a seasoned content marketer at Redfin with over five years of real estate experience. A licensed agent in Texas, she is an expert in making offers and negotiation strategies. Based in Dallas, Jasica is passionate about helping people make informed decisions. As a trusted voice at Redfin, her articles and campaigns guide buyers and sellers through the complexities of making an offer. Her ultimate goal is to empower everyone to achieve their dream of homeownership. In her free time, she loves new custom-built homes\u2014especially those with massive closets.","url":"https:\/\/www.redfin.com\/blog\/author\/jasica-usman\/"}]}},"_links":{"self":[{"href":"https:\/\/www.redfin.com\/blog\/wp-json\/wp\/v2\/posts\/101223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.redfin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.redfin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.redfin.com\/blog\/wp-json\/wp\/v2\/users\/813"}],"replies":[{"embeddable":true,"href":"https:\/\/www.redfin.com\/blog\/wp-json\/wp\/v2\/comments?post=101223"}],"version-history":[{"count":5,"href":"https:\/\/www.redfin.com\/blog\/wp-json\/wp\/v2\/posts\/101223\/revisions"}],"predecessor-version":[{"id":109689,"href":"https:\/\/www.redfin.com\/blog\/wp-json\/wp\/v2\/posts\/101223\/revisions\/109689"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.redfin.com\/blog\/wp-json\/wp\/v2\/media\/101225"}],"wp:attachment":[{"href":"https:\/\/www.redfin.com\/blog\/wp-json\/wp\/v2\/media?parent=101223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.redfin.com\/blog\/wp-json\/wp\/v2\/categories?post=101223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.redfin.com\/blog\/wp-json\/wp\/v2\/tags?post=101223"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.redfin.com\/blog\/wp-json\/wp\/v2\/coauthors?post=101223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}