What Is a CDD Fee and Should You Be Concerned?
What Is a CDD Fee and Should You Be Concerned?
When you’re house hunting in Florida, you might come across listings with a note: “CDD Fee Applies.”
So what exactly is a CDD fee, and should it affect your buying decision?
What Is a CDD Fee?
CDD stands for Community Development District. It’s a special taxing district created to fund infrastructure and amenities in new developments.
A CDD fee helps pay for:
- Roads, sidewalks, and utilities
- Drainage systems
- Streetlights
- Clubhouses, pools, and parks
Rather than the builder paying for all this upfront, the CDD spreads the cost to homeowners over time.
How Is It Paid?
CDD fees are typically included in your property tax bill as a separate line item.
They usually consist of:
- A bond repayment portion (for initial construction)
- An operations & maintenance fee (ongoing upkeep)
Fees can range from $1,000 to $3,000+ per year, depending on the community.
How Long Do You Pay a CDD Fee?
The bond portion is temporary—usually 20 to 30 years. The operations fee is ongoing for as long as you own the home.
Ask your agent or title company to clarify how many years remain on the bond.
CDD vs. HOA: What’s the Difference?
- HOA Fees are private dues paid to a homeowner’s association for community rules and amenities
- CDD Fees are public assessments that fund infrastructure and are collected with taxes
Some communities have both a CDD and an HOA—they cover different things.
Should You Be Concerned?
Not necessarily.
CDD fees aren’t a scam—they’re just a way to fund development. But you should:
- Factor them into your monthly budget
- Understand the value they provide (amenities, infrastructure)
- Know how long they’ll last
If the CDD helps fund a world-class clubhouse, it might be worth it.
Final Word
CDD fees are part of the cost of buying in many Florida communities. They’re not always bad—just be informed.
📞 Call Michael Renick at 941.400.8735 to break down CDD fees and find the right Florida neighborhood for your lifestyle and budget.
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