Naples Community Development Districts
Several of Naples larger developments, with multiple subdivision, have a Community Development District (CDD). With the CDD established, the original developer was able to issue government bonds to raise the funds needed to pay for the infrastructure – roads, sewer, water, common elements, etc. The debt for the payment of the bonds gets allocated to each property in the development. Homeowners pay their share of the debt off over the long-term (usually ranging from 20 to 30 years) by a fee on their tax bill equal to the amount of their annual debt service.
This is done by the developer to keep the price of the homes lower. Rather than the developer paying for the infrastructure upfront, and then recouping that cost through the price of the home. It’s done in the form of a bond that gets off by the homeowner over time. Without the CDD the price of the home would be higher.
An owner could pay off their share of the balance at anytime, but there would be little if any financial benefit for doing so. For example: Let’s say a owner pays off a $20,000 balance that was being paid off over 20 year. And then the seller decides to sell the home a year later. It would be rare for the seller to recoup those funds by increasing the price of the home. A buyer would not want to pay an additional $20,000 up front.
Naples and Surrounding Area Community Development Districts Include:
- AVE MARIA
- Fiddler’s Creek
- Fiddler’s Creek II
- Heritage Bay
- Heritage Greens
- Lely Resort
- Mediterra North
- Mediterra South
- Pelican Marsh/Tiburon
- The Quarry
- Tuscany Reserve
- Verona Walk
- Wentworth Estates (Treviso Bay)