What Is a CDD in Florida? CDD Fees vs. HOA Fees Explained

A CDD, or community development district, is a special-purpose local government that pays for and maintains a new community's infrastructure. Developers in Florida use CDDs to borrow money, through tax-exempt bonds, for roads, water and sewer lines, stormwater ponds and often amenities such as clubhouses and pools. Every lot in the district then repays that debt through a yearly assessment on the county property tax bill, alongside a second charge for upkeep. Together those are what people call CDD fees.

CDDs are created under Chapter 190 of the Florida Statutes, and they are common in newer master-planned communities. Florida had 1,067 of them as of August 2025, according to a University of Florida analysis of state data, up more than 50 percent since 2020.

A CDD is not an HOA. Many communities have both, and they do different jobs.

The two parts of a CDD fee

A CDD can levy two kinds of non-ad valorem special assessments on each lot (§190.021):

Both are a lien on the property until paid. The district certifies them to the county property appraiser each year, and they are usually collected on your property tax bill "in the same manner and at the same time as county taxes." That means unpaid CDD assessments are handled like unpaid property taxes, through tax certificates and, eventually, a tax deed sale.

A CDD may also levy ad valorem (property-value-based) taxes for operations, capped at 3 mills, though most rely on special assessments instead.

How much are CDD fees?

It depends entirely on the district and the lot. The University of Florida review of tax bills found annual CDD assessments from roughly $1,600 to $6,000 or more. Districts that financed large amenity packages, or that are early in their bond term, sit at the high end.

To see the real number for a specific home:

• Look up the parcel on the county property appraiser or tax collector website. The CDD charges appear as separate non-ad valorem lines on the tax bill, usually labeled with the district's name.
• Check the district's website. Every special district must keep one, with its budget, all of its assessments and rates, its latest audit and its meeting agendas (§189.069). Many also post an assessment schedule by lot type.
• Ask the district manager for the current-year assessment and the remaining bond balance on the lot.

CDD vs. HOA

In many communities, the CDD owns the roads, ponds and sometimes the clubhouse, while the HOA enforces the covenants and runs whatever the CDD doesn't. In others, such as The Villages, there is no mandatory HOA at all and the districts do most of the work. See Does The Villages Have an HOA? for how that works.

Who runs a CDD

A CDD has a board of five supervisors (§190.006). At first, the developer controls it, because supervisors are elected by landowners with one vote per acre, and early on the developer owns most of the land.

Control shifts to residents over time. Starting six years after the first board is appointed, once the district has at least 250 qualified electors (registered voters living in the district), expiring seats begin to be filled by residents at the regular November election. Large districts of more than 5,000 acres wait 10 years and need 500 qualified electors. The handover is gradual: two seats go to residents first, one more is elected by landowners, and after that every seat is filled by a resident.

Because a CDD is a government, its board meetings are public and its records are open. You can attend the annual budget hearing and comment before assessments are set.

Do CDD fees go away?

The debt service portion does, when the bonds are retired. CDD bonds commonly run about 30 years. After the last payment, that line drops off your tax bill.

The O&M portion doesn't. It continues as long as the district maintains facilities, and it can rise or fall with each year's budget.

Paying off the bond portion early

Many districts let owners prepay the remaining capital assessment on their lot in one payment, which removes that line from future tax bills. The district manager can give you a payoff amount. Whether it makes sense depends on the bond's interest rate, how long you plan to stay, and what you could earn on the money, so it's worth running the numbers before you pay.

When a home sells, the remaining bond balance usually stays with the property and passes to the buyer through the annual assessment. It isn't automatically paid off at closing unless the buyer and seller agree to it.

Are CDD fees tax deductible?

Partly, in some cases. The IRS says you can't deduct assessments for local benefits that tend to increase your property's value, such as new streets or water and sewer lines, but you can deduct the portion of an assessment that pays for maintenance, repairs or interest (IRS Publication 530). You have to be able to show how much of the charge falls into each category. Ask a tax professional how this applies to your district's assessments.

What Florida law requires sellers to tell you

• The first sale contract must warn you. The contract for the initial sale of a lot or home in a CDD must include a bold disclosure, just above the buyer's signature, that the district may impose taxes or assessments that are in addition to county and other local taxes (§190.048).
• The district must disclose its financing. Each CDD must make information about the public financing and maintenance of its improvements available to residents and prospective residents, give copies to developers for each initial buyer, and record it in the county property records (§190.009).

Resales don't carry the same statutory warning, so on a resale home, look up the tax bill yourself.

Before you buy in a CDD, check

• The current-year CDD assessments on the parcel's tax bill, not just a listing's estimate.
• How the total breaks down between debt service and O&M.
• The remaining bond balance and its maturity date, and whether a payoff is available.
• The district's budget and audit on its website, and any planned projects or new bonds.
• Whether there's also an HOA, and what its dues cover. See Buying Into a Florida HOA.
• Whether the board has transitioned to residents yet, or is still developer-controlled.

Frequently asked questions

What does CDD stand for in real estate? Community development district. In Florida it's a special-purpose local government created under Chapter 190 to finance and maintain a community's infrastructure.

What are CDD fees? The yearly assessments a community development district charges each lot: a debt service portion that repays the district's bonds, and an operations and maintenance portion for upkeep. They're usually collected on the county property tax bill.

Is a CDD the same as an HOA? No. A CDD is a local government that owns and maintains public infrastructure and bills you through your property taxes. An HOA is a private association that enforces deed restrictions and collects dues directly. Many Florida communities have both.

How long do CDD fees last? The debt service portion ends when the district's bonds are paid off, often after about 30 years. The operations and maintenance portion continues indefinitely and is set each year.

Can I opt out of CDD fees? No. If your property is inside the district, the assessments are a lien on it, like property taxes.

Can I pay off my CDD bond early? Usually, yes. Many districts accept a prepayment of the remaining capital assessment on a lot. Ask the district manager for a payoff figure.

Learn more

• Florida Statutes Chapter 190 — community development districts
• Florida Statutes §189.069 — what every special district must post online
• Does The Villages Have an HOA? — a community run by CDDs
• Buying Into a Florida HOA
• Florida HOA Estoppel Certificates
• How to Find a Florida HOA's Governing Documents

Statutory content on this page was last verified against the 2025 Florida Statutes on 2026-10-09. Confirm current statute text at flsenate.gov before relying on it.