What Is a CDD Fee? A Plain-English Guide for Jacksonville Buyers
You find a beautiful new home in a community with a resort-style pool, walking trails and a clubhouse. Then you see an extra line on the tax estimate: CDD.
It's one of the most misunderstood costs in Florida real estate. Here's what it is, and what to check before you buy.
What a CDD is
A Community Development District is a special-purpose local government created under Chapter 190 of the Florida Statutes. Developers use CDDs to pay for a new community's infrastructure up front, usually by issuing bonds. That can include:
- Roads, drainage and water and sewer lines
- Pools, clubhouses, parks and trails
- Landscaping and common areas
Homeowners then repay those costs over time through an annual CDD assessment.
How you pay it
CDD fees usually appear on your annual property tax bill as a "non-ad valorem assessment." That means it isn't based on your home's value. It's set by the district's board using its own formula. If your taxes are paid through your mortgage escrow, the CDD fee is paid the same way.
Most CDD fees have two parts:
- Debt service: repays the bonds that built the community. This part typically ends when the bonds are paid off, often over 10 to 30 years.
- Operations and maintenance: keeps the amenities and common areas running. This part usually continues.
Is a CDD a bad thing?
Not necessarily. A CDD is how many communities pay for amenities that would otherwise be built into a higher home price. Some buyers prefer a lower price plus an annual fee. Others would rather avoid the fee entirely.
What matters is knowing the full number before you commit.
What to check before you buy
- The total annual amount, and how much is debt service versus maintenance
- When the bonds are scheduled to be paid off
- Whether there's also an HOA fee. Many communities have both.
- How the fee affects your monthly payment. Add it to your tax and insurance estimate, not just the mortgage.
- For resale homes: the previous owner's tax bill and TRIM notice will show the CDD line. On a new home, the builder must disclose the CDD to you.
The bottom line
A CDD fee isn't a dealbreaker, but it should never be a surprise. Add it to your true monthly cost, compare it to similar homes without one, and decide with all the numbers in front of you.
Comparing new communities in Jacksonville or St. Johns County? We'll break down the true monthly cost of each one, CDD included.
Questions and answers
- What is a CDD fee in Florida?
- A Community Development District (CDD) is a special local government that funds a community's roads, utilities and amenities, often with bonds. Homeowners repay those costs through an annual assessment on their property tax bill.
- Do CDD fees ever go away?
- The bond (debt) portion is typically repaid over about 10 to 30 years. A smaller operations and maintenance portion often continues as long as the district maintains the community.