Real Estate Education
What Is a CDD Fee in Florida? How Community Development Districts Work
June 20, 2026 · 7 min read · By Pure Equity Realty
That extra line on the tax bill in a newer community is often a CDD fee. Here's what a CDD is in Florida, how the assessment works, and what to check.
Tour a newer South Florida community and you'll likely hear the term "CDD." Buyers often confuse it with an HOA, but a CDD fee is a different animal, and it can add meaningfully to your annual cost. Here's what is a CDD fee in Florida and how it works.
Key Takeaways
- A CDD is a special-purpose unit of local government created under Florida Statutes Chapter 190.
- It funds community infrastructure (roads, drainage, amenities) with bonds, repaid by assessments.
- The assessment has two parts: a finite bond-debt portion and an ongoing operations and maintenance (O&M) portion.
- CDD assessments appear on your property tax bill and are separate from any HOA dues.
What a CDD is
A Community Development District is a local, special-purpose government established under Florida Statutes Chapter 190. Developers use CDDs to finance the infrastructure of a new community, things like roads, water and sewer lines, drainage, and amenities, by issuing bonds. Instead of pricing all that into the home, the cost is spread across homeowners over time through assessments.
The two parts of a CDD assessment
Your CDD fee generally has two components. The first is the debt-service (bond) portion, which repays the infrastructure bonds. It's finite, often structured over roughly 20 to 30 years, and can sometimes be paid off early. The second is the operations and maintenance (O&M) portion, set annually to run and maintain the district's facilities, which continues as long as the district operates. So even after the bonds are retired, a smaller O&M assessment usually remains.
Where it shows up
CDD assessments are collected as a non-ad valorem line item on your annual property tax bill, alongside (but separate from) your regular property taxes. Florida law requires a conspicuous disclosure of the CDD's authority to levy assessments in the initial sale contract (Fla. Stat. 190.048), so it should never be a surprise at closing.
CDD vs HOA
They're not the same. A CDD is a government district with the power to levy assessments and issue bonds, enforced through the tax bill. An HOA is a private association governed by recorded covenants. Many communities have both, which is why your total carrying cost can include CDD assessments and HOA dues. For the other half, see what do HOA fees cover.
What to check before you buy
Ask for the remaining bond balance on the specific home, since older homes in a community may have less debt left than new ones. Request a payoff or estoppel figure from the district manager, and look at the non-ad valorem section of the current tax bill to see the actual annual amount. CDDs are common in master-planned and new-construction communities, so factor the assessment into your budget the way you would taxes and insurance.
Considering a home in a CDD community? Pure Equity Realty will pull the assessment details so you know the true monthly cost before you offer. Talk to us.
Frequently asked questions
What is a CDD fee in Florida?
It's an assessment levied by a Community Development District, a special-purpose local government under Chapter 190, to repay bonds for community infrastructure and to fund ongoing maintenance. It appears on your property tax bill.
Is a CDD fee the same as an HOA fee?
No. A CDD is a government district that levies assessments through the tax bill; an HOA is a private association funded by dues. A community can have both.
Does a CDD fee ever go away?
The bond-debt portion is finite and ends once the bonds are repaid (often after about 20 to 30 years), but the operations and maintenance portion typically continues as long as the district operates.
How do I find out the CDD fee on a home?
Check the non-ad valorem section of the property tax bill and request the remaining bond balance and payoff figure from the district manager before you buy.
Sources
- Florida Statutes Chapter 190 (Community Development Districts), including 190.048 (purchaser disclosure); county property appraiser non-ad valorem assessments.
Published June 20, 2026. General information, not legal advice; bond terms and amounts vary by district, so verify the specific home.
