To finance the infrastructure for a subdivision development, Arizona Law allows the formation of:

Community facilities districts, commonly referred to as CFDs, are special taxing districts formed under Arizona law that allow for the funding of infrastructure improvements necessary for subdivision development. These districts enable local governments to levy taxes specifically to finance public infrastructure, such as roads, parks, schools, and other essential facilities needed to support the new community.

The ability to form a community facilities district provides developers an essential method to cover the costs associated with necessary improvements, allowing for the timely development of a subdivision. By creating a CFD, developers can sell bonds to fund infrastructure projects, which are then repaid through taxes assessed on the property owners within the district.

In contrast, a homeowner's association primarily focuses on managing and administering the rules and regulations of a community after it has been developed, but it does not have the authority to finance infrastructure. Planned communities and planned unit developments refer to specific types of land use and community design that may include common areas and shared amenities but do not inherently provide a method for financing the infrastructure needed to develop those spaces.