📢 What is a CDD Fee? Understanding Community Development Districts in Florida
What is a CDD Fee?
Understanding Community Development Districts in Florida
Everything You Need to Know About CDD Fees Before Buying a Home
If you're searching for a home in Florida, you’ve likely seen properties listed with CDD fees—but what exactly are they, and how do they impact homeownership?
A Community Development District (CDD) fee is unique to many master-planned communities and plays an essential role in financing neighborhood infrastructure and amenities. This post will explain what CDD fees are, what they cover, how they compare to HOA fees, and whether they’re something you should consider when buying a home.
What is a CDD Fee?
A Community Development District (CDD) is a government-approved entity that allows developers to finance the initial infrastructure of a new community.
Instead of including these costs in the price of each home, the developer issues bonds to fund essential infrastructure and passes the repayment onto homeowners through an annual CDD fee, which is included in the homeowner’s property tax bill.
📌 In simple terms: A CDD fee is how new communities fund roads, utilities, parks, and amenities over time instead of making buyers pay for it all upfront.
What Do CDD Fees Cover?
CDD fees help create and maintain the amenities that make master-planned communities desirable. The exact services covered vary by community, but they typically include:
✔ Infrastructure: Roads, sidewalks, water/sewer systems, storm drainage.
✔ Parks & Trails: Playgrounds, green spaces, walking trails, and nature preserves.
✔ Community Amenities: Clubhouses, pools, fitness centers, dog parks, and sports courts.
✔ Lakes & Landscaping: Maintenance of ponds, common areas, and irrigation systems.
✔ Security & Maintenance: Some CDDs fund neighborhood security services and upkeep.
💡 A CDD fee ensures these features are funded and maintained, which helps keep the community attractive and property values strong.
How Much Are CDD Fees?
CDD fees vary based on the community, home size, and lot type. They typically range from $1,000 to $3,500 per year but can be higher in luxury communities with extensive amenities.
📌 Important facts about CDD fees:
✔ They are included in your annual property tax bill—not a separate monthly charge.
✔ They vary within the same neighborhood. Larger homes or premium lots often have higher CDD fees.
✔ They can sometimes be paid off early. Some homeowners choose to pay off the CDD debt portion upfront to lower their annual taxes.
How Long Do You Pay CDD Fees?
CDD fees are typically paid over 20 to 30 years, depending on the community’s financing structure.
✔ Part of the fee goes toward paying off the bond debt.
✔ Another portion covers ongoing operations & maintenance (O&M), which continues even after the debt is paid off.
💡 Some developers refinance the CDD bonds at lower interest rates, which can extend the repayment period. It’s important to check how long your community’s CDD fees are expected to last.
How is a CDD Fee Different from an HOA Fee?
It’s easy to confuse CDD fees and HOA (Homeowners Association) fees, but they serve different purposes.
🏡 Most Florida master-planned communities have both a CDD fee and an HOA fee. The HOA typically manages community rules, landscaping, and events, while the CDD funds long-term infrastructure and amenities.
Pros & Cons of Buying in a CDD Community
📌 Pros of CDD Fees:
✔ Access to better amenities (resort-style pools, trails, parks).
✔ More affordable home prices since infrastructure costs aren’t built into the purchase price.
✔ Well-maintained landscaping, lakes, and public areas.
✔ Strong property value growth due to continued investment in community development.
📌 Cons of CDD Fees:
❌ Higher tax bill due to the additional fee.
❌ CDD fees may last 20-30 years or longer if refinanced.
❌ Some buyers prefer older communities without CDD fees.
💡 While CDD fees mean higher annual costs, they also come with the benefit of top-tier amenities and well-maintained infrastructure.
Can You Pay Off a CDD Fee?
Yes! Many communities allow homeowners to pay off the bond portion of their CDD fee early.
✔ Paying it off eliminates the debt portion from your property taxes.
✔ You will still owe the operations & maintenance (O&M) fee for ongoing upkeep.
✔ Contact your community’s CDD office to request a payoff amount.
Should You Avoid Buying a Home with a CDD Fee?
Not necessarily! While a home without a CDD fee may look appealing, CDD communities offer more amenities, newer infrastructure, and higher property values over time.
🏡 When deciding whether a CDD community is right for you, ask yourself:
✔ Do I want resort-style amenities and newer infrastructure?
✔ Am I comfortable with an additional tax assessment to cover these features?
✔ Would I prefer a lower upfront home price vs. paying more annually in taxes?
How to Check a Home’s CDD Fee
Before buying, always ask:
✅ What is the annual CDD fee for this home?
✅ How many years are left on the CDD bond?
✅ Can I pay off the CDD fee early?
📍 If you’re considering a home in a master-planned community, we can help you determine the exact CDD fee and what it covers.
Thinking About Buying a Home with a CDD Fee? Let’s Talk!
📞 Call or text us at (904) 826-3690 for expert guidance!
📩 Not quite ready? Download our FREE Buyer’s Guide to learn everything about financing, buying new construction, and finding the perfect home.
