What Is a CDD Fee in Florida? How Community Development Districts Work

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 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.

Where you will actually meet a CDD

Community development districts cluster in master planned communities built on former agricultural land, which in our region means the Treasure Coast and western Palm Beach County rather than the older coastal cities.

Port St. Lucie is the clearest example, with large planned communities including Tradition and Verano built inside district boundaries. Newer Palm Beach County developments such as Westlake and Arden follow the same model. Older neighbourhoods in Fort Lauderdale, Hollywood or West Palm Beach generally predate the structure entirely. A buyer comparing a 1970s home against a 2019 build is often comparing two different cost structures without realising it.

The disclosure the seller owes you

Florida does not leave this to chance. Chapter 190 of the Florida Statutes requires a disclosure statement for the sale of property within a community development district, telling the buyer that the district exists and that it may impose assessments.

If you are selling a home in a district, give that disclosure early and in writing. If you are buying and have not seen one, ask for it before your inspection period ends. A buyer who learns about a $2,400 annual assessment after the deadline has far fewer options than one who learns about it in week one.

How it changes what you can borrow

This is the part that surprises buyers. A CDD assessment is part of your housing expense, so lenders count it when calculating your debt ratios, exactly as they count taxes, insurance and association fees.

A $200 monthly district assessment therefore reduces the loan amount you qualify for. Two otherwise identical homes at the same price are not equally affordable if one sits in a district and the other does not. Ask your lender to run the numbers with the assessment included before you fall for a house.

What happens if it goes unpaid

District assessments usually appear on the annual property tax bill as a non ad valorem line. That placement has consequences, because it means they are collected under the same process as property taxes.

An unpaid tax bill in Florida leads to a tax certificate sale, and eventually to a tax deed application. So a district assessment is not a bill you can quietly ignore in a difficult year. It carries the same enforcement weight as the tax itself, which is a stronger position than an association lien.

Can you pay the bond off early

Often yes. The capital portion of a district assessment repays bonds issued to build the infrastructure, and many districts allow an owner to pay off their share as a lump sum.

Whether it is worth doing depends on arithmetic rather than principle. Compare the payoff amount against the remaining years of payments, and consider how long you plan to stay. Paying off a bond you will only benefit from for two years rarely makes sense, while doing it early in a long hold sometimes does. Note that the operations and maintenance portion continues regardless, since it funds ongoing upkeep rather than construction.

Pricing a district home against one without

Sellers in districts often feel penalised, and the fix is presentation rather than price cutting. A buyer comparing your home against a non district listing is comparing monthly cost, whether or not anyone says so out loud.

So do the comparison for them. Show what the assessment funds, which is typically newer roads, drainage, amenities and landscaping that an older neighbourhood pays for through other means or does not have at all. Then show the total monthly figure alongside a comparable older home once its association fee and higher maintenance are counted. That is a fair comparison, and it frequently favours the newer home.

Finding the number yourself

You do not need to take anyone's word for the assessment. Pull the property record on the county property appraiser or tax collector site, then look at the non ad valorem section of the tax bill rather than the ad valorem taxes above it.

District assessments appear there as separate line items, usually naming the district. Where the bill separates capital from maintenance, you can see how much of your payment is retiring bonds and how much funds ongoing upkeep. That split tells you which portion has an end date and which does not.

More common questions

Is a CDD fee tax deductible?

Treatment differs between the capital and maintenance portions, and it is genuinely a question for a tax professional rather than an agent. Do not assume the whole line is deductible because it sits on the tax bill.

Can a district raise its assessment?

The maintenance portion is set through an annual budget process and can change. The capital portion is generally fixed by the bond schedule until it is repaid.

Do districts ever get dissolved?

It happens, though rarely, and usually long after the bonds are repaid. Plan around the assessment you can see rather than one you hope disappears.

Can you tell me the exact assessment on a specific home?

Yes. It is on the property tax record, and we pull it as standard on any district home in the eight counties we serve, along with how many years of bond payments remain.

Sources

• Florida Statutes Chapter 190 (Community Development Districts), including 190.048 (purchaser disclosure); county property appraiser non-ad valorem assessments.
• Florida Statutes Chapter 190, community development districts
• Florida Department of Revenue

Published June 20, 2026. General information, not legal advice; bond terms and amounts vary by district, so verify the specific home.