If you're buying a home in Florida - especially in the Tampa Bay area - you're going to run into the term "CDD fee" sooner or later. And when you do, you'll probably have the same reaction most of my clients have: "What is that, and why am I paying it on top of everything else?"
Here's the plain-English explanation. No jargon, no fluff.
What Is a CDD Fee?
A Community Development District (CDD) is a local, special-purpose government entity authorized by Chapter 190 of the Florida Statutes. When a developer builds a new community, they can create a CDD to finance the infrastructure - roads, drainage, streetlights, sidewalks, pools, parks, clubhouses - through municipal bonds instead of passing those costs directly into the home price.
Those bonds get repaid over 20-30 years by the homeowners through an annual assessment that shows up on your property tax bill as a "non-ad valorem assessment." That's your CDD fee.
Florida currently has over 1,067 active CDDs - and that number has grown more than 50% since 2020.
How Much Are CDD Fees in Florida?
CDD fees vary widely depending on the community, the infrastructure that was built, and how far along the bonds are in being paid off.
| Community | Location | Annual CDD | Annual HOA |
|---|---|---|---|
| La Collina | Brandon | ~$1,303 | $2,736-$5,424 |
| FishHawk Ranch | Lithia | $1,008-$2,500 | $120-$800 |
| Starkey Ranch | Odessa | $2,300-$3,400 | $75 master + sub-HOA |
| Ballentrae | Riverview | ~$1,825 | ~$60 |
| SouthFork Lakes | Riverview | ~$1,750 | ~$1,704 |
| Waterset | Apollo Beach | Varies (3 CDDs) | $136 |
| Ayersworth Glen | Wimauma | O&M only (bonds paid) | $100 |
Statewide, CDD fees typically range from $1,000 to $3,500 per year, though some communities charge as little as $500 or as much as $6,300+ annually.
The Two Parts of a CDD Fee
This is the part most people miss. Your CDD fee is actually two separate charges bundled together:
1. Bond (Debt Service) Assessment
This is the fixed annual payment that repays the municipal bonds used to build the community's infrastructure. It's structured over 20-30 years. Once the bonds are fully paid, this portion goes away entirely.
2. Operations & Maintenance (O&M) Assessment
This covers the ongoing costs of maintaining what the CDD built - landscaping, pond maintenance, utility bills for common areas, management, insurance, administration. The CDD Board of Supervisors sets this budget annually. This portion never goes away.
When you see communities like Ayersworth Glen advertising that their bonds are paid off, it means residents are only paying the O&M portion - which is significantly less than the full CDD fee.
CDD vs. HOA: What's the Difference?
This is one of the most common questions I get. Here's the breakdown:
| CDD | HOA | |
|---|---|---|
| What Is It? | Public government entity | Private non-profit corporation |
| Governing Law | Chapter 190, FL Statutes | Chapter 720, FL Statutes |
| Purpose | Finance & maintain infrastructure | Enforce rules & architectural standards |
| Transparency | Subject to FL Sunshine Laws | Private meetings |
| How You Pay | On property tax bill | Separate bill from HOA |
| Duration | Bond: 20-30 yrs; O&M: indefinite | Ongoing indefinitely |
| Tax Deductible? | Generally no | No |
Can you have both CDD and HOA? Yes - and it's very common in Florida. When both exist, the CDD handles infrastructure and amenity maintenance, while the HOA enforces deed restrictions and neighborhood standards. Because the CDD covers most of the heavy lifting, HOA fees tend to be much lower in CDD communities.
Do CDD Fees Ever Go Away?
Partially.
- Bond portion: Yes - eliminated when bonds are fully paid (typically 20-30 years from community creation)
- O&M portion: No - continues indefinitely and can increase annually
Can you pay off CDD fees early? You can prepay the bond portion in a lump sum. Contact the District Manager for your payoff figure. But be aware: it typically costs tens of thousands of dollars upfront, and you won't recoup the benefit if you sell before the bonds would have matured anyway.
How CDD Fees Affect Your Mortgage
This is where it gets real. Because CDD fees show up on your property tax bill, your lender includes them in your monthly escrow payment. That means:
- Your monthly mortgage payment is higher than in a non-CDD community
- CDD fees directly increase your debt-to-income (DTI) ration
- This can reduce how much house you qualify for
A home might look competitively priced compared to a non-CDD property, but once you factor in the annual assessment, your true monthly cost could be $100-$300 higher.
Always ask your lender: "How are you treating the CDD assessment in my qualification?" before you fall in love with a home in a CDD community.
Are CDD Fees Tax Deductible?
Generally no. The IRS classifies CDD assessments as non-ad valorem assessments, not ad valorem property taxes. They are typically not deductible on your personal tax return for a primary residence.
If you own the property as a rental/investment, CDD fees may be deductible as a business expense. Consult your tax professional.
How to Find Out if a Home Has CDD Fees
Before you make an offer, here's how to check:
- Check the property tax bill - Look under "Non-Ad Valorem Assessments" on your county tax collector's website (hillstaxfl.gov for Hillsborough County)
- Ask your real estate agent - Any experienced local agent should know which communities have CDDs
- Request an estoppel letter - This legal document from the CDD outlines outstanding balances, future assessments, and bond payoff amounts
- Visit the CDD's website - Most CDDs publish budgets, meeting agendas, and assessment schedules online
- Title search - Your title company will reveal CDD liens during the closing process
Florida law (Section 190.048) requires that all initial sales contracts within a CDD include a disclosure statement in bold type. But for resale purchases, it's on you (and your agent) to do the homework.
Pros and Cons of Buying in a CDD Community
Pros:
- Better amenities (pools, clubhouses, parks, trails)
- Lower initial home price (infrastructure costs deferred, not built into sticker price)
- Professionally maintained common areas
- Government-level transparency (public meetings, public records, annual audits)
- Lower HOA fees (CDD handles most maintenance)
- Tax-exempt borrowing rates on bonds
Cons:
- Additional annual cost on top of mortgage, taxes, and HOA
- O&M fees never go away
- Reduces your mortgage qualification power (higher DTI)
- Developer controls the board for the first ~6 years
- Can narrow buyer pool at resale (some buyers don't understand CDDs)
- Aging infrastructure may trigger new assessments down the road
The Bottom Line
CDD fees aren't inherently good or bad. They're a financing mechanism. The key is knowing what you're paying, why you're paying it, and how it affects your total monthly cost before you make an offer.
I walk every buyer through the CDD math before they commit. If you're looking at communities in Brandon, Riverview, Valrico, or anywhere in Tampa Bay and want to understand the full picture, let's talk.
Barrett Henry
REMAX Collective
📞 (813) 733-7907
✉ barrett@nowtb.com
Last Updated: . Sources: Chapter 190, Florida Statutes; Hillsborough County Tax Collector; community CDD websites; Florida Housing Finance Corporation. This is educational content and not legal or tax advice.
