A Community Development District is a special taxing district that funds a community's roads, utilities and amenities. Here is how CDD fees work, how they differ from HOA dues, and what they do to your monthly payment.
Assessment amounts, bond terms and budgets are set by each individual district. Confirm current figures with the district manager and the county tax collector for the specific property. HomeIQ is not a tax advisor.
The essentials
How Florida CDD fees work
Six things to understand before you compare two communities on price alone.
Florida
What a CDD actually is
A Community Development District is a local unit of special-purpose government authorized by Chapter 190 of the Florida Statutes. Developers use a CDD to finance the infrastructure a new community needs — roads, water and sewer lines, stormwater systems, entry features, and often amenities such as pools and clubhouses. The district issues bonds to pay for that work up front, and the homeowners inside the district repay those bonds over time through assessments on their property.
Florida
The two parts of a CDD assessment
Most CDD bills have two components. The debt service assessment repays the infrastructure bonds; it is a fixed amount per lot, usually running 20 to 30 years, and it can often be paid off early in a lump sum. The operations and maintenance assessment covers the district's day-to-day costs — landscaping common areas, maintaining ponds and streetlights, amenity upkeep — and is set annually by the district's board, so it can change from year to year.
Florida
How CDD fees appear on your tax bill
In most Florida counties, CDD assessments are collected on the annual property tax bill from the county tax collector as a non-ad valorem assessment. They are listed separately from your ad valorem property taxes, below the millage-based lines. Because they arrive with the tax bill, they are usually escrowed with your mortgage — which is why your lender's monthly escrow figure can be higher than a tax estimate that ignored the CDD.
Florida
CDD vs. HOA: not the same thing
An HOA is a private nonprofit corporation governed by recorded covenants; it bills you directly and enforces architectural and use rules. A CDD is a governmental entity with elected supervisors, public meetings, and the power to levy assessments collected like taxes. Many Florida communities have both, and you pay both. Unpaid HOA dues lead to a private lien and foreclosure action; unpaid CDD assessments follow the tax-certificate process, which is faster and harder to dispute.
Florida
The monthly payment impact
CDD assessments commonly run from about $1,000 to $3,000 per year, and can exceed that in amenity-heavy master-planned communities. At $2,400 per year, that is $200 per month added to your housing cost on top of principal, interest, property taxes, insurance and HOA dues. Two homes at the same list price — one inside a CDD, one not — can differ by several hundred dollars a month.
Florida
Required disclosure before you buy
Florida law requires that buyers of property inside a CDD receive a disclosure stating that the district may impose and levy assessments. For new construction, the builder provides it in the contract package. For a resale, ask for the current year's assessment amount, the remaining debt-service term, and whether the prior owner paid off the bond portion. Verify the figures with the district and the county tax collector rather than relying on the listing.
Side by side
CDD vs. HOA at a glance
Both can apply to the same home. They are collected differently and enforced differently.
Comparison of Florida CDD assessments and HOA dues
CDD
HOA
What it is
Special-purpose unit of local government
Private nonprofit corporation
Governed by
Elected board of supervisors, public meetings
Board elected by members under recorded covenants
How you pay
Non-ad valorem line on the county tax bill
Billed directly, monthly/quarterly/annually
What it funds
Infrastructure bonds plus common-area operations
Community services, insurance, rules enforcement
If unpaid
County delinquent-tax process, tax certificate sale
Private lien and foreclosure action
Can it end
Debt portion ends when bonds are paid off
Continues as long as the association exists
Example
What a CDD does to a monthly payment
Numbers below are illustrative. Actual assessments depend on the district, the bond schedule and the annual budget for the specific property.
Annual CDD debt service
$1,500
Annual CDD operations & maintenance
$900
Total annual CDD assessment
$2,400
Added monthly cost
$200
Add HOA dues on top of this. When you compare a CDD community to a non-CDD community, compare the full monthly figure — principal and interest, property taxes, insurance, CDD and HOA — not the list price.
Common questions
Florida CDD questions from buyers
Sources
Where to verify CDD details
Use these official sources to confirm a district's assessments, budget and bond status.
