Frequently Asked Questions
Community Development Districts - What you should know!
A CDD is a governmental unit created to serve the long-term specific needs of its community. Created pursuant to Louisiana Statutes, a CDD’s main powers are to plan, finance, construct, operate and maintain community-wide infrastructure and services specifically for the benefit of its residents.
What will the CDD Do?
Through a CDD, the community can offer its residents a broad range of community-related services and infrastructure to help ensure the highest quality of life possible. CDD responsibilities within our community include but are not limited to, maintenance of the ring levee and the storm water management and evacuation system, irrigation water supply for the CDD owned and maintained common areas, street lights., roadways including the bridge into community using Lakeshore Village South over the ring levee, the traffic light at Lakeshore Village Boulevard and East End Boulevard and the original entry/small fountain before you reach the aforementioned bridge.
How CDDs Operate
A CDD is governed by its Board of Supervisors which is elected initially by the landowners, then begins transitioning to residents of the CDD after six years of operation. Like all municipal, parish, state, and national elections, the Office of the Supervisor of Elections oversees the vote, and CDD Supervisors are subject to state ethics and financial disclosure laws. The CDD’s meetings and records are open to the public including Board of Supervisor Meetings. The Board Meetings are meant for the Board to conduct the business of the CDD. Public Hearings may also be held as the Board sees fit and those hearings would allow for public comment and testimony on the topic of the hearing.
Relationship with Homeowner's Associations
The CDD complements the responsibilities of community homeowner's associations (HOAs). Many of the maintenance functions handled by these associations in other communities may be handled by the CDD. However, the associations have other responsibilities such as operating amenities and ensuring that deed restrictions and other quality standards are enforced. The CDD may contract with the master homeowner's association to perform maintenance functions.
Benefits to Residents
Residents within a community with a CDD may expect to receive three major classes of benefits. First, the CDD provides landowners 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 is able to determine the type, quality and expense of CDD facilities and services.
Other savings are realized because a CDD is subject to the same laws and regulations that apply to other government entities. The CDD is able to borrow money to finance its facilities at lower, tax-exempt, interest rates, the same as cities and counties. Many contracts for goods and services, such as annually negotiated maintenance contracts, are subject to publicly advertised competitive bidding.
Residents and property owners in a CDD set the standards of quality, which are then managed by the CDD. The CDD provides perpetual maintenance of the environmental conservation areas. This consistent and quality-controlled method of management helps protect the long term property values in a community.
The Cost of a CDD
The cost to operate a CDD is borne by those who benefit from its services. Property owners in the CDD are subject to a non-ad valorem assessment, which appears on their annual property tax bill from the parish tax collector and may consist of two parts—an annual assessment for operations and maintenance, which can fluctuate up and down from year to year based on the budget adopted for that fiscal year—and an annual capital assessment to repay bonds sold by the CDD to finance community infrastructure and facilities, which annual assessments are generally fixed for the term of the bonds. Because costs and services vary depending upon the individual CDD, specific fee information is available for each community. You will find your CDD assessment on your annual real estate tax bill on the upper right at the bottom the columns reflecting the various Tax Districts.
Lasting Value
The CDD makes it possible for our community to offer the most desirable elements of a master-planned community. Residents enjoy high quality infrastructure facilities and services with the comfort and assurance of knowing that the standards of the community will be maintained long after the developer is gone. With a CDD in place, residents are assured of the ability to control quality and value for years to come.
Community Development District FAQs
Q. What is the Community Development District in our community specifically responsible for?
A The CDD will provide the following publicly-owned elements:
- Off-site road improvements constructed in the early stages of development that are the responsibility of the CDD to own and maintain.
- Conservation areas
- Water and sewer facilities, which will be transferred to the appropriate franchised utility, which is Oak Harbor Utility
- Landscaping in center median and main road right of ways and the original entry features
- Stormwater Drainage System, including the stormwater evacuation system
- The ring levee
- Street Lights
Q. Who governs the CDD?
The CDD is governed by a five-member Board of Supervisors who were originally appointed by the Parish. The Board is now made up of Supervisors who are registered voters who reside within the boundaries of the CDD and were elected by registered voters living within the confines of the CDD. A professional manager implements the policies of the Board.
Q. How are CDD services financed?
The CDD issues Special Assessment Revenue Bonds to finance community infrastructure. Generally, Community Development Districts 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. In addition, to maintain the facilities of the community and administer the CDD, the CDD conducts a public hearing each year at which it adopts an operating and maintenance budget. The funding of this budget is levied as an operating and maintenance assessment on your property by the Board of Supervisors. All residents pay for a share of the maintenance of the CDD improvements through this annual assessment.
Q. How are annual assessments determined?
The annual operating and maintenance assessment amount will be set annually by the Board of Supervisors. The factors that determine an adjustment in the assessment consist of inflation and changes to the levels of service.
Q. Can I payoff the bonds on my property?
In most cases, yes! Any homeowner may request their payoff amount including interest. This must be a formal written request to the CDDs accounting firm, Rizzetta & Company, Inc. The requesting party will receive an estoppel letter and instructions on where to submit payment to and the time frame for which that payment amount is good for.
Q. What are the ongoing responsibilities of the CDD?
The ongoing responsibilities of the CDD are to administer CDD bonds, operate and maintain the community facilities for the benefit of the property owners.