Thursday July 17, 2025
What is a special district?
In Florida, a special district is a type of local government created to provide specific services to a defined area. Unlike a city or county, which handles a broad range of responsibilities, a special district focuses on one or two key services, like water management, fire protection, community development, or public transportation.Each special district has its own board, which oversees operations, budgets, and long-term planning. Board members may be elected by residents or appointed, depending on how the district was formed. The boundaries of a special district vary. Some serve just one neighborhood, while others cover multiple counties. What makes them “special” is their narrow focus and operational independence, though they often coordinate with cities or counties on shared goals.
This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
Types of special districts
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Community development districts (CDDs)
CDDs are established under Chapter 190 of the Florida Statutes to finance, plan, construct, and maintain infrastructure and services in new or growing communities. These districts often handle amenities such as roadways, stormwater management systems, and recreational facilities. CDDs may have the authority to issue bonds to finance infrastructure and levy certain assessments or taxes to repay those bonds.
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Water management districts
These special districts oversee the management and protection of water resources across large regions of the state. Florida has five major water management districts that work closely with the Department of Environmental Protection. They operate under Chapter 373 of the Florida Statutes.
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Fire control districts
Fire control or fire protection special districts are responsible for providing fire and emergency services within their boundaries. Some are funded by property taxes, while others may receive fees or special assessments. These districts operate under Chapter 191 of the Florida Statutes.
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Municipal service taxing or benefit units (MSTUs/MSBUs)
These special districts are created by counties or municipalities to provide specific services to a portion of their jurisdiction. They can cover services like street lighting, stormwater maintenance, or security. Unlike traditional special districts, these units are often known as “dependent special districts,” funded through targeted taxes or assessments approved by the local government. These operate under Chapter 125 of the Florida Statutes.
Key laws and rules
Special districts in Florida are governed primarily by Chapter 189 of the Florida Statutes, also known as the Uniform Special District Accountability Act. This law outlines the framework for creating, operating, and dissolving special districts.Key provisions include:
- Creation and modification: Special districts can be created by special act of the Florida Legislature, by general law, through local ordinances, or by rule of the Florida Land and Water Adjudicatory Commission.
- Financial reporting: Special districts must post tentative and final budgets on their own website (or send them to the local governing authority) and file an annual financial report with the Florida Department of Financial Services.
- Audits and transparency: Special districts are subject to public records laws and must comply with reporting requirements. Districts with revenues or expenditures above certain thresholds may also be required to undergo annual audits.
- Oversight agencies: The Florida Department of Commerce maintains an official list of special districts and provides resources for compliance and reporting.
How special districts are created
There are several ways a special district can be created in Florida:- Special act of the legislature: Many special districts are established through laws passed by the Florida Legislature. These acts detail the district’s powers, governance, and funding.
- General law: Some districts are created under provisions in Florida Statutes that allow for local creation with standardized powers.
- Local ordinance: County or municipal governments might pass ordinances to establish dependent special districts within their jurisdictions.
- By rule: Districts larger than certain acreage thresholds (currently 2,500 acres or more) must be created by rule adopted by the Florida Land and Water Adjudicatory Commission under Chapter 120.
How special districts interact with HOAs and condo associations
In Florida, special districts often exist alongside homeowners associations (HOAs) or condo associations, but they serve different roles. A CDD, for example, may manage large-scale infrastructure like roads, stormwater systems, or entry features, while the HOA or condo board handles daily operations, architectural guidelines, and resident communications. It’s common for both entities to operate in the same neighborhood with separate boards, budgets, and responsibilities. Clear coordination between the two is important to avoid service gaps or overlapping costs. Professional special district management companies like FirstService Residential can help streamline communication, keep obligations clear, and support board members with budgeting, maintenance, and compliance.Benefits and challenges
Special districts offer targeted services tailored to the needs of a specific area. This localized approach can provide greater responsiveness and flexibility than general purpose government services. For example, a community development district can fund and maintain infrastructure specifically designed for a new neighborhood without relying on citywide resources.However, challenges can arise when special districts are not well-understood or lack oversight. Residents may not always be aware of which districts they belong to or how decisions are made. Transparency requirements aim to address this by making information accessible and actionable. Boards and residents alike benefit from clear communication, sound financial planning, and ongoing compliance support. Working with a professional special district management company like FirstService Residential can make it easier to navigate the nuances of operating or living within a special district.