CDD fees
CDD fees in Florida: what home buyers should know
Many newer Florida communities were built with money borrowed by a Community Development District, or CDD. The homeowners repay it through a yearly charge on the property tax bill, often for decades.
What a CDD is
A Community Development District is an independent special district, created as "an alternative method to manage and finance basic services for community development" (s. 190.002). It typically pays for roads, water and sewer lines, drainage and amenities, often by issuing bonds.
Two kinds of CDD assessments
| Type | What it pays for | How long |
|---|---|---|
| Debt service (bond) assessment | Repaying the bonds that built the infrastructure | Until the bonds are paid off, often many years |
| Operations and maintenance (O&M) | Running and maintaining the district's facilities | Every year, set by the district's board |
Both are special assessments, set out in s. 190.021. A CDD with an elected board can also levy a property tax of up to 3 mills for operations.
Where they appear
CDD assessments are collected by the county tax collector on the property tax bill, as non-ad valorem assessments. They're a lien on the property until paid, so they pass to each new owner.
The county estimator won't show them. The Hillsborough County Property Appraiser's tax estimator excludes non-ad valorem charges. The only reliable place to see a home's CDD charges is its current tax bill, or the district itself.
Why resale buyers can miss them
Florida requires a bold-type CDD notice, placed just before the buyer's signature, in the contract for the initial sale of a home in a district (s. 190.048). That requirement doesn't apply to resales. A buyer of a five-year-old home may never see the notice, even though the charges continue.
THE (Name of District) COMMUNITY DEVELOPMENT DISTRICT MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS, ON THIS PROPERTY. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS OF CERTAIN PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND ASSESSMENTS PROVIDED FOR BY LAW.
What to ask before the offer
- Is the home in a CDD? Check the non-ad valorem section of the current tax bill.
- How much is the debt-service part, how much is O&M, and when do the bonds pay off?
- Can the bond portion be paid off early? This varies by district, so ask the district manager.
- Has the board raised O&M recently, or does it plan to?
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- Florida Statutes s. 190.002 (purpose of community development districts)
- Florida Statutes s. 190.021 (CDD taxes and assessments)
- Florida Statutes s. 190.048 (CDD sales disclosure)
- Florida Statutes s. 190.009 (CDD disclosure of public financing)
- Hillsborough County Property Appraiser: Tax Estimator
This guide explains Florida law and public records in plain English. It is not legal, tax or insurance advice, and laws change. Check important details with the county property appraiser, the tax collector or a Florida attorney.