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5. COMMUNITY
DEVELOPMENT
DISTRICT (CDD)
What It Is: A community development district is a
special-purpose governmental entity created under
state statute. It finances and maintains large-scale
infrastructure within a designated area.
Types of Communities:
• Expanding suburban developments
• Large master-planned communities
How It Operates: A CDD can issue bonds to fund
major infrastructure. Property owners repay
those bonds through assessments tied to their
taxes over time. The district might manage public
improvements that would otherwise fall to a
municipality.
What Fees Cover:
• Road construction and maintenance
• Utility systems
• Public lighting
• District-managed recreation facilities
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