Does Everyone in Florida Have to Pay CDD Fees?

Do All Florida Homeowners Have to Pay CDD Fees?

How This Works in Florida Specifically

CDD fees in Florida are tied directly to the property, not the owner, and are assessed only in communities that have established a Community Development District under Florida Statute Chapter 190. These fees are collected as non-ad valorem assessments on your county property tax bill, not as a separate HOA invoice. In Sarasota, Manatee, and other Gulf Coast counties, CDDs are especially common in newer master-planned developments – think Lakewood Ranch, Palmer Ranch, and parts of Parrish – while older neighborhoods rarely have them. The CDD assessment typically has two parts: a bond/debt repayment (often 20 – 30 years) and an operations-and-maintenance (O&M) portion that continues as long as the district exists.

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. If you buy a home in a CDD, you inherit the obligation – there’s no way to opt out or shift the responsibility. The only exception is the bond portion: some sellers will pay off the remaining bond at closing as a negotiation point, but the ongoing O&M assessment remains. In my experience, buyers sometimes use the presence of a large CDD as leverage to negotiate the purchase price, but the fee itself is set by the district and enforced by the county.

When my husband Mike and I bought our condo at Seaplace212 in 2018, we were fortunate that we had the Renick Team on our side. Eric & Mike are very Professional and honest with full disclosure. I am a licensed Real Estate agent in Florida. I feel comfortable referring my clients to Eric and Mike. I know that they will receive competent representation.

– Marge Nuzzo, Google Review

Exceptions and Variations

The only Florida homeowners who pay CDD fees are those whose properties are physically located within a CDD boundary – this is public record and can be verified with the county tax office or property appraiser. Homes outside a CDD owe nothing, even if they are in the same ZIP code or adjacent neighborhood. Some communities have both an HOA and a CDD, while others have only one or neither. In rare cases, the bond portion of the CDD may have been paid off by a prior owner, but the O&M assessment continues for as long as the district operates.

Standard vs. Exceptions

What This Means for Your Specific Transaction

If you’re buying in Sarasota, Manatee, or any of the Gulf Coast’s newer master-planned communities, you must check the property tax record for a CDD assessment before making an offer. I’ve seen buyers discover a $2,000 annual CDD fee three days before closing – enough to push their debt-to-income ratio over the lender’s limit and kill the deal. In other cases, buyers assumed that “bond paid” meant no CDD at all, only to find out the O&M portion still applied. The only way to avoid surprises is to verify the CDD status and exact amount early in due diligence.

Questions Clients Actually Ask

How do I know if a property has a CDD fee?

You can check the county property tax bill for any non-ad valorem assessments labeled as CDD or Community Development District. I always pull the tax record for my buyers before we write an offer.

Can I pay off the CDD fee in advance?

You can pay off the bond portion of the CDD early, but the operations-and-maintenance assessment continues as long as the district exists. Even after the bond is paid, you’ll still owe the O&M fee each year.

Mike Renick and Eric Teoh have been 5 star Realtors for many, many years. Both individuals have been cooperative and pleasant to any of my requests. While I am away from my Longboat residence Eric has willingly checked on the conditions and status of our unit. I would highly recommend both for real estate needs. My rating for Mangrove Realtors is

– Peter Cutler, Google Review

Are CDD fees tax-deductible?

CDD fees are not considered property taxes for federal income tax purposes, so they are generally not deductible. Always confirm with your tax advisor for your specific situation.

What To Do Right Now

Before you make an offer, pull the county tax record for the property and look for any CDD assessment – don’t rely on the MLS or listing agent’s word.

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