Are CDD Fees Optional in Florida Real Estate?
Are CDD Fees Optional in Florida Real Estate?
Quick Answer
CDD fees in Florida are not optional – they are mandatory assessments attached to properties within a Community Development District (CDD). These fees typically range from several hundred to a few thousand dollars per year, depending on the community, according to FS Residential and Florida for Boomers. The amount is determined by the district and collected through your county property tax bill as a non-ad valorem assessment, not something you can opt out of or negotiate at closing. For example, a newer Sarasota-area home in a master-planned community might have a CDD fee of $1,200 – $2,500 per year, regardless of whether the bond portion is paid off. Buyers who misunderstand this risk being blindsided by higher monthly payments and escrow requirements after closing. Call me at 941.400.8735 or reach out directly to Michael Renick – I’ll share my approach with you.
Are CDD Fees Optional in Florida Real Estate?
CDD fees are never optional for properties located within a Community Development District in Florida. Once you buy a home in a CDD, you are legally required to pay the annual assessment as long as you own the property.
These assessments are governed by Florida Statutes, Chapter 190, which gives the district the authority to levy and collect fees for infrastructure and ongoing maintenance. Even if a listing advertises “bond paid” or “no bond,” the operations and maintenance (O&M) portion of the CDD fee usually continues for the life of the district. If you ignore or misunderstand this, you could face unexpected costs that impact your mortgage escrow, monthly payment, and even your ability to qualify for a loan. Always verify both the bond and O&M portions before making an offer in a CDD community.
How This Works in Florida Specifically
In Florida, CDD fees are established by a special-purpose local government district under Florida Statutes, Chapter 190. The district issues bonds to pay for roads, utilities, drainage, and amenities, then repays those bonds through annual assessments on each property. These assessments are split into a bond (debt) portion, which typically lasts 15 – 30 years, and an operations and maintenance portion, which continues as long as the district exists.
Both portions are collected as non-ad valorem assessments on your county property tax bill. This means your lender will usually escrow the amount, increasing your monthly payment. In Sarasota, Manatee, and surrounding Gulf Coast counties, CDDs are especially common in newer master-planned communities where infrastructure costs are shifted to residents.
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How This Is Typically Negotiated
CDD fees are not negotiable between buyer and seller in the way that closing costs or HOA dues might be. The assessment is tied to the property, not the owner, and is set by the district. While a seller can sometimes pay off the remaining bond portion at closing (if allowed by the district), the ongoing operations and maintenance fee will remain. In my experience, confusion often arises when buyers see “bond paid” in a listing and assume all CDD costs are gone – when in reality, the O&M fee continues.
Exceptions and Variations
The only exception is if you buy a property outside a CDD – then there are no CDD fees. In rare cases, a seller may offer to pay off the remaining bond at closing, but this does not eliminate the ongoing maintenance assessment. Older communities may have a lower or retired bond portion, but the O&M fee almost always remains. Some properties in the same neighborhood may have different CDD balances depending on when they were built or how much of the bond has been paid down.
Standard vs. Exceptions
| Scenario | Is CDD Fee Mandatory? | Can Buyer/Seller Remove Fee? |
|---|---|---|
| Home inside active CDD (newer community) | Yes | No (except bond payoff) |
| Home inside CDD, bond paid off | Yes (O&M remains) | No |
| Home outside any CDD | No | Not applicable |
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What This Means for Your Specific Transaction
If you’re considering a home in a Sarasota or Manatee County community with a CDD, you cannot opt out of the fee. I’ve seen buyers get to the final underwriting stage only to realize their monthly payment is $200 – $300 higher than expected because the CDD assessment was added to their escrow. In one case, a buyer nearly lost their deposit because the true carrying cost put them over their lender’s debt-to-income ratio. Always request a copy of the most recent property tax bill and verify both the bond and O&M portions before you make an offer.
Questions Clients Actually Ask
Can I negotiate the CDD fee with the seller?
You cannot negotiate the CDD fee itself, as it is set by the district and attached to the property, not the owner. In some cases, a seller might agree to pay off the remaining bond portion at closing, but the ongoing maintenance fee will remain your responsibility.
What happens if I don’t pay the CDD fee?
If you fail to pay your CDD assessment, it is treated like a property tax delinquency and can ultimately lead to a tax certificate sale or foreclosure. The county tax collector enforces collection, and lenders require escrow for this reason.
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– Peter Cutler, Google Review
How do I find out if a property has a CDD fee?
You can check the property’s most recent county tax bill for non-ad valorem assessments or ask your agent to verify with the district. Listings should disclose CDD status, but always confirm independently.
Are CDD fees the same as HOA dues?
No, CDD fees are government-imposed special assessments for infrastructure and maintenance, while HOA dues are private association fees for amenities and rules enforcement. Both can apply to the same property.
Will the CDD fee ever go away?
The bond portion may eventually be paid off, but the operations and maintenance fee typically continues as long as the district exists. In most Florida communities, the O&M fee is a permanent cost.
What To Do Right Now
Before you make an offer, request a copy of the property’s full tax bill and confirm all CDD assessments with the district or county tax office.
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Michael Renick · Licensed Florida Real Estate Broker
License #BK3241900 · Verify on Florida DBPR
Mangrove Realty Associates Inc / Team Renick · Serving Sarasota & Manatee Counties since 2011
About the Author
I’m Michael Renick — a Florida West Coast broker with over 15 years guiding families through some of the biggest decisions of their lives. I’ve built my practice on hard work, honesty, and total transparency. No shortcuts, no spin — just straight answers, deep market knowledge, and the dedication my clients deserve from start to close.
Equal Housing Opportunity. This article is general information only, not legal, tax, insurance, or financial advice. Market conditions, insurance requirements, and costs vary by property and transaction; confirm your specific situation with the appropriate licensed professional. Michael Renick, Licensed Florida Real Estate Broker, License #BK3241900, licensed by the Florida Department of Business and Professional Regulation (DBPR). Mangrove Realty Associates Inc — each office is independently owned and operated.
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To read more insights: gulfcoastdecoded.com
