Navigating CDD Fees in Florida: Key Insights for Homebuyers

Are you on the path to becoming a Florida homeowner and wondering about the ins and outs of Community Development District (CDD) fees? You’re not alone. Navigating these fees is a crucial aspect of the home-buying process in the Sunshine State. 

In this article, we’ll provide you with straightforward information on what CDDs are, their functions, the types of fees involved, and how they impact your journey to homeownership. Let’s dive into the essential details to help you make informed decisions about CDD fees in Florida.

Home Buying 101: What is CDD Fees in Florida?

Community development districts (CDDs), often found in Florida, are specialized local governments established to serve a unique purpose. Their primary function is to develop, maintain, and enhance communities by creating and sustaining essential infrastructure and amenities. This includes roads, utilities, parks, recreational facilities, and common areas. 

CDDs are prevalent in Florida because they play a crucial role in deferring infrastructure costs, allowing new homes to be competitively priced while ensuring residents enjoy well-maintained amenities and a high quality of life.

What Does CDD Fees in Florida Do?

CDDs primarily focus on infrastructure development and maintenance within communities. They are responsible for creating and upkeeping essential infrastructure such as roads, utilities, parks, and recreational facilities. This ensures that residents have access to well-maintained amenities and a high standard of living.

CDDs offer a range of services to residents, including:

  • Development and maintenance of common areas.
  • Operation of recreational amenities like swimming pools, playgrounds, and community centers.
  • Enforcing community standards and aesthetic guidelines to create an appealing neighborhood.
  • Financing the development of infrastructure through CDD fees in Florida, which can be included in property tax bills or mortgage payments.

What are CDD Fees?

CDD fees in Florida are a critical component of homeownership in CDD communities. These fees consist of two primary types of assessments:

Bond (or Debt) Assessments

This portion of CDD fees in Florida is a fixed amount designed to finance the initial development, infrastructure, and amenities of the community. Homeowners typically pay off this debt over a 20- or 30-year period, though early payment is often an option. Bond assessments can vary depending on the specific projects and infrastructure financed by the CDD.

Operations and Maintenance Assessments

The operations and maintenance portion of CDD fees covers the ongoing upkeep and operation of community amenities and services. These assessments may fluctuate from year to year, depending on the expenses associated with maintaining the community. They are generally designed to ensure that amenities and common areas are well-maintained and provide residents with a high quality of life.

How is a CDD Organized?

A community development district is organized with a governance structure similar to other local governments in Florida. It typically includes:

  • Board of Supervisors – The board of supervisors, consisting of five members elected or appointed by residents, is the central decision-making body of the CDD. They establish policies and oversee the development, maintenance, and management of the community.
  • District Administrator – In a required position, the district administrator manages the day-to-day operations of the CDD, ensuring its smooth functioning.
  • District Counsel – Serving as legal counsel, the district counsel provides legal guidance, ensuring compliance with state laws and handling legal matters related to the district’s operations.

How is a CDD Different from an HOA?

Homeowners associations primarily focus on maintaining community standards, enforcing rules and regulations, and overseeing common areas and amenities. Homeowners pay HOA fees for this purpose, which are often used for upkeep and improvements. HOAs also regulate property aesthetics to ensure compliance with community guidelines.

CDDs, on the other hand, are special-purpose local governments responsible for infrastructure development and maintenance. They use CDD fees, including bond (debt) and operations and maintenance assessments, to finance and manage community amenities. While HOAs may represent homeowners in CDD communities, they generally do not handle common area or amenity maintenance. CDDs are primarily concerned with creating and sustaining essential infrastructure and facilities, making them different from the more regulatory focus of HOAs.

Do CDD Fees Go Away?

CDD fees in Florida do not completely go away. Homeowners may have the option to pay off the infrastructure assessment, which is sometimes advertised as “no bond” or “bond paid” in resale listings. However, the CDD maintenance assessment is an ongoing cost that continues as long as you live within the district. So, while the infrastructure assessment can be paid off, homeowners will always have to contend with the CDD maintenance assessment.

How CDD Fees Are Calculated?

CDD fees in Florida are calculated based on the cost of infrastructure development and maintenance. For example, if the infrastructure construction costs $10 million, there are 1,000 acres within the district, and the unit within the district where your home is located has 100 acres and 200 lots, you can calculate the infrastructure assessment by dividing the total cost by the acres. 

In this case, it’s $10 million divided by 1,000 acres, resulting in $10,000 per acre. Then, for your unit with 100 acres, this would amount to a million dollars for your unit, which can be divided by the 200 lots, resulting in a $5,000 bond per lot for your unit. This example illustrates how infrastructure assessments are calculated in CDDs.

Are CDD Fees in Florida Tax Deductible?

CDD fees in Florida are generally not tax-deductible. While these fees are typically included in your property tax bill, they are considered assessments rather than ad valorem taxes. Some individuals may attempt to deduct the full amount, but it’s not recommended, as technically, only a portion of the payment constitutes property taxes. It’s best to follow the Internal Revenue Service (IRS) guidelines and not attempt to deduct CDD fees on your federal tax return.

The Downsides of CDDs

The downsides of CDD fees in Florida can be understood by weighing the pros and cons. Here’s a balanced overview:


  • Infrastructure and Amenities: CDDs provide essential infrastructure, amenities, and services to newly developed areas that might not have them otherwise, creating attractive communities for residents.
  • Shifted Burden: CDDs shift the financial responsibility for infrastructure development and maintenance from local governments to homeowners within the district, which can be seen as a pro by some.
  • Control Shift: As homes are sold, control over the CDD shifts to homeowners, giving them a say in the decision-making process.


  • Financial Risks: CDDs can face financial challenges, as seen during economic downturns. Many went bankrupt during the 2007-2009 recession, and homeowners may be left with increased financial burdens if a CDD defaults on its bonds.
  • Ongoing Costs: Homeowners are required to pay both infrastructure and maintenance assessments. While the infrastructure assessment can be paid off, the maintenance assessment is an ongoing, never-ending cost.
  • Lack of Transparency: Some homeowners may find it challenging to understand the intricacies of CDD finances, making it important to work with knowledgeable real estate agents.

CDD Fees in Florida FAQs

How long do CDD fees last in Florida?

CDD fees in Florida typically last for an extended period. The infrastructure assessment can span 15 to 30 years. However, it’s important to note that the CDD maintenance assessment is an ongoing cost and does not go away as long as you live within the district.

What is the CDD in Florida?

The CDD, or Community Development District, in Florida, is a particular purpose government framework permitted by Florida Statutes. It is used by local governments and developers to finance and manage infrastructure development, maintenance, and community improvements in specific districts or areas.

Why does Florida have CDD fees?

Florida has CDD fees to fund and manage the essential infrastructure and services required for planned communities to function efficiently. These fees help support the construction, maintenance, and improvement of community amenities, ensuring residents have access to quality services and facilities.


Understanding CDD fees in Florida is crucial for homebuyers. These fees are a fundamental aspect of homeownership, impacting both initial costs and ongoing expenses. While CDDs offer valuable benefits like well-maintained infrastructure and amenities, they also come with financial considerations that should be carefully weighed before making a home purchase decision.

If you’re in the Sarasota area, The Vision Group can help you navigate the complexities of home buying, ensuring a smooth and informed journey to your Florida dream home. Contact us today for expert guidance!