What Are Community Development District (CDD) Fees in Your Property Taxes?
If you’re shopping for a home in Florida or certain other states, you may come across something called a Community Development District (CDD) fee included in the annual property taxes. But what exactly is it?
A CDD is a special-purpose taxing district that helps fund the development of new communities—typically covering infrastructure like roads, water systems, parks, streetlights, and other public improvements. Instead of the developer bearing all those upfront costs, a CDD spreads them out over time through fees assessed to homeowners in the district.
Here’s how it works:
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The CDD issues bonds to pay for the infrastructure.
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Homeowners repay those bonds over a period of 20–30 years as part of their property tax bill.
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This fee usually appears as a separate line item within your annual property taxes.
It’s important to note that CDD fees are not the same as HOA fees. While HOA dues cover ongoing maintenance and community management, CDD fees are more about repaying the original development costs and maintaining public infrastructure.
Before buying a home, check if the property has a CDD. It can affect your monthly mortgage payment and overall budget—so it's good to know what you're paying for.
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