What is a CDD fee?

In North Florida, a CDD fee is a Community Development District fee, which is a type of special assessment used in the United States to finance the construction and maintenance of infrastructure improvements in newly developed areas.

If you are considering buying a new home in Florida, you may have heard a reference to CDD fees - And, you may be wondering just what are CDD fees? 

What is a CDD for?

So just what type of community-related services can you expect if you pay a CDD fee? CDDs typically develop and maintain common areas and resort-style amenities within your new community. This means you can enjoy amenities such as swimming pools, dog parks, playgrounds, and community centers, all within your neighborhood!

CDDs also handle the maintenance of the common areas and amenities following standards put in place by the homeowners and the CDD board. 

And, one of the biggest advantages of living in a CDD community is the value that comes from living in an aesthetically appealing neighborhood that provides a wide variety of recreational and functional amenities, all while paying a comparable price to that of a home built in a non-CDD community!

CDD fees are comprised of two parts – Bond (or Debt) and Operations and Maintenance. The Bond (or Debt) is a fixed amount and finances the development, infrastructure, and amenities of the community. It is typically paid over a 20- or 30-year period, but it can be paid off in advance. 

The Operations and Maintenance portion of your CDD fees maintains the community and operates its amenities, and this portion may fluctuate from year to year. 

Both portions of the CDD fees are collected as part of your property tax bill. If you are financing the purchase of your new home, your taxes are most likely escrowed as part of your monthly mortgage payment which means payment of your CDD fees is both simple and worry-free with no additional out-of-pocket expenses to remember to pay.