In short: A buyer of mortgage notes on Port of the Islands property in Collier County argued that improvement district assessments for operations should not carry tax-lien priority over its mortgages. The trial court held bond validation and the statute barred the challenge. In December 2014 the Second DCA affirmed without a written opinion.
The Facts
The Second District affirmed without an opinion, so the facts come from the arguments as described in the oral argument video, not from appellate findings. The court’s docket lists the appeal as Ciudad de los Angeles LLC v. Port of Islands Hotel & Resort Naples, LLC, et al.; the video describes the appellant’s side as the Bardi Foundation.
The appellant’s side bought mortgage notes secured by property inside the Port of the Islands Community Improvement District in Collier County. It sued for foreclosure, declaratory relief and equitable subordination, arguing that district assessments used for operations and usage should not receive the super-priority, tax-lien status that the special district statutes give to assessments.
The trial court ruled that earlier bond validation proceedings and the governing statute barred the challenge.
The Decision
On December 24, 2014, the Second District affirmed in a per curiam decision without an opinion. The trial court’s ruling stood, leaving the district’s assessment liens ahead of the mortgages. The court gave no reasons, so the decision does not tell us whether it rested on bond validation, the statute, or something else.
The Law
Under section 190.021, Florida Statutes(9), special assessments levied by a community development district are a lien on the assessed property from the date imposed until paid, coequal with state, county, municipal and school board taxes. That means they generally outrank private mortgages, even older ones.
Bond validation under chapter 75 adds another barrier. Under section 75.09, Florida Statutes, once a judgment validating bonds becomes final, it is conclusive as to the validity of the bonds and of the assessments pledged to repay them, and those matters cannot later be questioned in any court by any person, including property owners and lienholders.
Current law (2026): s. 190.021(9), Fla. Stat. (2026): CDD assessments are liens coequal with state, county, municipal and school board taxes. s. 75.09: final bond validation judgment is forever conclusive as to the bonds and pledged assessments.
Lessons
- Before buying notes or lending on property in a special district, pull the district’s assessment roll and bond validation history.
- District assessments can outrank a first mortgage. Price that risk into the deal.
- Challenges to assessments pledged to bonds usually must be raised in the bond validation case, not years later.
- Keep district assessments current on any property you hold or service to avoid tax-lien-level enforcement.
Watch the Oral Argument
This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
Improvement District Super-Priority Liens vs. Lender Rights | Port of the Islands, 2D14-1422
Go Deeper
- Bought at a Foreclosure Sale, Sold It, and Still Had a Live HOA Dispute (Viera East)
- How Florida Code Enforcement Works: Chapter 162 Hearings, Fines, and Liens
Frequently Asked Questions
Do CDD assessments have priority over a mortgage in Florida?
Generally yes. Section 190.021(9) makes CDD special assessments a lien coequal with state, county, municipal and school board taxes. Like property taxes, they typically take priority over private mortgages regardless of when the mortgage was recorded, and unpaid assessments can be collected through tax certificate or foreclosure procedures.
Can I challenge a special district assessment after bonds are validated?
It is very difficult. Under section 75.09, a final bond validation judgment is conclusive as to the bonds and the assessments pledged for repayment, and those issues cannot be questioned later in any court. Challenges generally must be raised in the validation proceeding itself.
What is equitable subordination in a Florida foreclosure?
It is a request that the court lower another lien’s priority because of the lienholder’s inequitable conduct or other equitable grounds. Courts apply it sparingly, and it usually cannot override a statute that sets lien priority, such as the one giving district assessments tax-lien status.
What is the Port of the Islands Community Improvement District?
It is a special taxing district in eastern Collier County that provides infrastructure and services to the Port of the Islands community and levies assessments on property within it. Owners and lenders there must account for those assessments in addition to county property taxes.
Talk to a Florida real estate litigation lawyer
Weidner Law, P.A. handles Florida real estate disputes, contracts, closings and appeals from St. Petersburg. If you need a real estate litigation lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: every Florida statute and court rule is on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
