Updated November 4, 2026
What a CDD is
A community development district (CDD) is an independent special-purpose unit of local government created under Chapter 190 of the Florida Statutes. A developer or landowner usually starts one with government approval. It can plan, finance, build, operate and maintain community infrastructure such as roads, drainage, water and sewer lines, and sometimes parks and amenities.
A CDD has narrow powers. It cannot adopt comprehensive plans or building codes, and it must follow public meeting and records laws.
How you pay
CDD charges are generally non-ad valorem assessments that appear on the annual property tax bill, collected by the county tax collector. There are usually two parts:
- Operations and maintenance: funds the district's budget and can change from year to year.
- Capital (debt): repays bonds that financed the infrastructure. It is generally fixed for the life of the bonds.
These assessments are in addition to HOA dues. They are not the same thing, so ask for both numbers.
The disclosure you should see
Under section 190.048 of the Florida Statutes, after a CDD is established, the contract for the initial sale of a home in the district must include a disclosure statement. It must appear immediately before your signature, in bold, conspicuous type larger than the rest of the contract. It warns that the district may impose and levy taxes or assessments, or both, on the property, to fund certain facilities and services, and that these are separate from county and local taxes.
Look for it in your contract. If you do not see it, ask the builder about it before you sign.
Why CDDs exist and what it means for you
Because the district pays for infrastructure with bonds, the purchase price of the home may be lower than if the infrastructure cost had been built into the price. You pay through assessments for as long as you own the property and the bonds remain outstanding. The key is to compare the total annual cost, including property tax, CDD and HOA, with similar communities.
Boards are initially elected by landowners, and residents take over seats over time as the community grows.
Questions to ask before you sign
- What are the current annual CDD operations and debt assessments for this lot?
- How many years remain on the bonds?
- Can the debt portion be paid off early, and how?
- What does the CDD maintain, and what does the HOA maintain?
- Where can I find the district's budget and meeting notices?
Ask for answers in writing, and look at the district's public website or records. Your real estate agent or attorney can help you read them.
Impact fees are a different charge
People sometimes mix up CDD assessments with impact fees. Impact fees are one-time charges local governments use to pay for infrastructure needed because of new growth, such as roads, parks, schools or fire and emergency facilities. Under the Florida Impact Fee Act (section 163.31801), they cannot be collected earlier than building permit issuance, and new or increased fees need at least 90 days' notice.
Ask the builder how impact fees are handled in your price. CDD assessments, by contrast, recur each year on your tax bill.
Selling later
CDD assessments stay with the property. A future buyer will see them on the tax bill and in the disclosures, so they can affect resale conversations. You generally pay for the years you own the home. Keep your records so you can explain the assessments clearly when you sell.
A real estate agent familiar with new communities can help you compare the total annual carrying cost of different neighborhoods before you buy.
Reading the documents
The district keeps public records, and many districts post budgets, assessment information and meeting notices online. Your builder or the district manager can point you to them. Look for the adopted annual budget, the assessment roll or schedule for your lot type, and any information on bonds. If the numbers are hard to follow, ask your agent or a closing attorney to help you read them before you commit.
Remember that the amount can differ by lot size or home type within the same district, so ask for the figure for the specific lot you are buying, not an average for the community.
Frequently asked questions
Is a CDD fee the same as an HOA fee?
No. A CDD is a unit of local government and its assessments appear on the tax bill. An HOA is a private association that bills dues. Many communities have both.
Can CDD assessments go up?
The operations and maintenance part depends on the district's annual budget and can change. The debt part is generally fixed for the life of the bonds. Ask for the district's budget.
Are CDD fees tax deductible?
That depends on your tax situation, so ask a tax professional. We cannot give tax advice.