CDD (Community Development District)
Also known as: Community Development District, CDD Assessment, CDD Fee
A special-purpose government district in Florida (and some other states) that levies annual assessments on homeowners to finance infrastructure built for new communities — similar to California's Mello-Roos.
Detailed Explanation
A CDD is a local government entity created to manage and finance infrastructure for a community — roads, water and sewer systems, parks, and amenities. The cost of building this infrastructure is passed to homeowners through annual CDD assessments.
CDD assessments appear on your property tax bill as a separate line item. They can range from $1,000 to $5,000+ per year and typically run for 15 to 30 years until the infrastructure bonds are paid off.
CDD assessments are extremely common in Florida new construction. Unlike HOA fees, CDD assessments are collected by the county tax collector and are a lien against your property — meaning failure to pay can result in a tax lien sale.
In Your Contract
Florida builders are required to disclose CDD assessments. Look for a CDD disclosure notice or special assessment disclosure in your purchase documents.
Key Points
- 1Common in Florida new construction communities.
- 2Annual assessments of $1,000 to $5,000+ for infrastructure bonds.
- 3Collected with your property taxes — not paying can result in a tax lien.
- 4Typically 15 to 30 years until bonds are retired.
- 5Separate from HOA fees — you may pay both.
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