What is a CDD in Florida?
A community development district is an independent special district, a unit of local government, set up under Chapter 190 to plan, finance, build, operate and maintain infrastructure for a new community. Developers use CDDs because the district can borrow through tax-exempt bonds at rates closer to those a city pays, and repay that debt through assessments on the homes that benefit.
What a CDD pays for
It varies by district. The Cypress Bluff CDD in eTown, Jacksonville, lists parks and recreation facilities, trails, utilities, lighting, signage, stormwater improvements and parkway landscaping. The CFM CDD, managed from Fort Myers, lists roads and sidewalks, lake maintenance, landscaping, wetland monitoring and street lighting.
Who runs it
A five-member board of supervisors. According to the CFM CDD, landowners elect the first board, which then transitions to residents after six years of operation, with the supervisor of elections running resident elections. Because it is a government, its meetings and records are public and its budget is audited every year.
The legal powers behind the fee
Section 190.021 gives a district power to levy benefit special assessments, non-ad valorem assessments and maintenance special assessments. Under section 190.009, the district must disclose its public financing to existing and prospective residents and file those disclosures in the county property records, and FloridaCommerce keeps a list of districts and their disclosures.
The two parts of a CDD fee
Debt service (capital) assessment
This repays the bonds that built the infrastructure. It is usually fixed for the life of each bond issue. The eTown developer's guide says its bonds have a term of 30 years and that the capital assessment for each bond issue "is fixed and will not increase". Different phases of the same community can carry different debt, depending on which bond series financed them.
Operations and maintenance (O&M) assessment
This pays for mowing, lake care, lighting, insurance, management and, in some districts, amenity operations. The board adopts a budget at a public hearing each year, so this part can rise or fall. The Rivers Edge CDD in RiverTown raised maintenance assessments about 11% for fiscal year 2027, for example from $1,310.90 to $1,455.10 on its smallest lots.
Collection costs and the early payment discount
Because the county tax collector bills CDD charges with property tax, districts gross up their budgets to cover collection costs and the discount for paying early. FishHawk Ranch's FY2027 schedule adds 6%: 2% Hillsborough County collection costs and 4% early payment discount.
What is the average CDD fee in Florida?
No state agency publishes an average, and a single number would mislead: fees depend on how much debt the developer issued, how old the bonds are, the lot size and the services the district provides. What you can compare are published district budgets. These are adopted FY2027 figures for single-family homes, which appear on the November 2026 tax bill:
| District (community) | County | FY2027 annual assessment | What it includes |
|---|---|---|---|
| FishHawk Ranch CDD (FishHawk Ranch) | Hillsborough | $1,198.49 to $2,097.30 | O&M of $1,198.49 for every lot, plus debt of $0 to $898.81 by phase and lot size |
| Rivers Edge CDD (RiverTown) | St. Johns | $1,455.10 to $3,121.42 | Maintenance only, by lot width from 30 ft to 80 ft plus |
| Cypress Bluff CDD (eTown) | Duval | $775 capital, before collection costs and discount | Capital only; O&M set each year |
The range inside one district can be wide. In FishHawk Ranch, a home in the original section with no remaining debt pays $1,198.49, while an 80-foot lot financed by the Series 2020 bonds pays $2,097.30. Local pages list more examples, including Stoneybrook West, Bella Collina and Oakmont.
Worked example: what a CDD adds to the monthly cost
From the tax bill to a monthly figure
Take the 80-foot FishHawk Ranch lot: $2,097.30 a year ÷ 12 = $174.78 a month, collected once a year with property tax or through your mortgage escrow. Paid in November with the 4% discount, the bill is $2,097.30 × 0.96 = $2,013.41.
Comparing a CDD home with a non-CDD home
Suppose home A costs $450,000 and carries that $2,097.30 CDD. Home B costs $470,000 with no CDD. With 10% down at Freddie Mac's 7.03% average rate (September 24, 2026), the extra $20,000 on home B adds $18,000 to the loan and about $120.12 a month in principal and interest. Home A's CDD costs $174.78 a month. On these assumptions, the cheaper home costs about $54.66 more a month to carry, until its debt portion ends. Property tax on the extra $20,000 of value narrows the gap, and a paid-off bond changes it again, so run your own numbers.
What happens when the bonds are repaid
In the same example, the FishHawk debt line is $898.81 of the $2,097.30. When the bond series is retired, the owner keeps paying the $1,198.49 O&M charge but not the debt line. Ask the district manager which bond series applies to the parcel and when it matures.
How long do CDD fees last in Florida?
The two parts end differently.
The debt portion ends when the bonds are repaid
The capital or debt assessment lasts for the term of the bond issue, commonly 30 years, as in eTown's case, counted from when the bonds were issued, not from when you buy. A home in a 15-year-old community may have only about half the term left. If the district refinances its bonds, the schedule can change.
The O&M portion does not end
The district keeps maintaining its roads, ponds and common areas, so the maintenance assessment continues as long as the district exists, reset in each year's budget.
Can you pay off CDD fees in Florida?
Usually the debt portion, yes. The CFM CDD, like many districts, says debt assessments may be prepaid in full at any time by landowners, and that payoff figures must be requested and verified in writing by the district manager.
How payoff works
You pay the remaining debt allocated to your parcel, as calculated by the district. After that, the debt line drops off the tax bill. Some developers prepay part of the capital assessment at closing; the CFM CDD notes a significant portion of its capital assessment will be prepaid by the developer at the time of closing, so ask a builder whether that applies.
Is it worth paying off?
Compare the payoff amount with what that cash earns elsewhere and with how long you plan to stay. Paying off does not reduce the O&M charge, and the payoff may not raise your sale price by the same amount. Some owners prefer to leave the debt on the bill so it is spread across future owners.
Is a CDD better than an HOA?
Neither is better in general; they do different jobs, and many Florida communities have both.
| CDD | HOA | |
|---|---|---|
| Legal form | Local government under Chapter 190 | Private nonprofit association under Chapter 720 |
| How you pay | On the county property tax bill | Billed directly by the association |
| What it funds | Public infrastructure and its upkeep; bond debt | Amenities, common areas, deed restriction enforcement |
| Openness | Public meetings and records, annual independent audit | Governed by the association's documents and Chapter 720 |
| Required disclosure | Statement in the initial sale contract (s. 190.048) | Disclosure summary before contract (s. 720.401) |
Pros of a CDD
Infrastructure is built at the same time as homes, the debt is financed at tax-exempt rates, residents eventually elect the board, and spending is public.
Cons of a CDD
Two layers of charges when there is also an HOA, a debt line that can last decades, and a fee that shows up on the tax bill rather than in the listing's HOA field, so buyers can miss it.
How to check CDD fees before you buy
Read the tax bill, not just the listing
Look up the parcel on the county tax collector's site and find the non-ad valorem assessments section. The CDD usually appears by name, sometimes as one combined line. Neither the homestead exemption nor the Save Our Homes cap reduces it; see the homestead guide.
Find the district's own budget
Every CDD publishes its adopted budget and assessment schedule, usually on its website. Look for the lot size or product type that matches the home, and the bond series.
Check the contract disclosure
Section 190.048 requires every contract for the initial sale of a lot or home in a district to carry, just above the buyer's signature, a boldfaced statement that the district may impose taxes and assessments for construction, operation and maintenance, set annually by its board. That rule covers new sales from a builder; on a resale, the tax bill and district documents are your check.
Ask the district manager
Ask for the parcel's current annual assessment, the bond series and maturity, any planned bond issues, and a payoff figure. The new construction guide covers builder questions, and the home buying guide shows where these checks fit before your inspection period ends.
Common questions
How long do CDD fees last in Florida?+
The debt portion lasts until the district's bonds are repaid, commonly 30 years from when the bonds were issued, as in eTown's Cypress Bluff CDD. The operations and maintenance portion continues for as long as the district maintains its infrastructure, with the amount reset in each year's budget. Ask the district manager when your parcel's bond series matures.
Is CDD better than HOA?+
They are different. A CDD is a local government under Chapter 190 that finances and maintains infrastructure, bills through the property tax bill and holds public meetings. An HOA is a private association under Chapter 720 that runs amenities and enforces deed restrictions. Many communities have both, so compare the combined yearly cost of each home.
What is the average CDD fee in Florida?+
No state agency publishes a statewide average, and fees vary widely with bond debt and lot size. In adopted fiscal year 2027 budgets, FishHawk Ranch homes pay $1,198.49 to $2,097.30 a year, and RiverTown's Rivers Edge CDD charges $1,455.10 to $3,121.42 in maintenance alone. Check the exact parcel on the county tax bill.
Can I pay off my CDD fees in Florida?+
In most districts you can prepay the debt portion in full at any time. Request a written payoff figure from the district manager; afterwards the debt line comes off your tax bill. You still pay the yearly operations and maintenance assessment, which cannot be prepaid because the board sets it each year.
Are CDD fees included in property taxes?+
They are billed on the same county tax bill but are not property tax. They appear as non-ad valorem assessments, so they are not reduced by the homestead exemption or the Save Our Homes cap. They are due with the tax bill, and the early payment discount of up to 4% applies when you pay in November.
Do CDD fees go up?+
The debt portion is generally fixed for each bond issue. The operations and maintenance portion is set each year at a public budget hearing and can rise with costs or service changes; the Rivers Edge CDD raised its maintenance assessments about 11% for fiscal year 2027. Read the district's adopted budget before you buy.
Sources
- Florida Statutes: section 190.048, required disclosure to purchaser
- Florida Statutes: section 190.009, disclosure of public financing
- Florida Statutes: section 190.021, taxes and special assessments
- Florida Statutes: section 720.401, HOA disclosure summary
- Fishhawk Ranch CDD: FY2027 debt service and O&M assessment schedule
- Rivers Edge CDD: Adopted FY2027 budget
- eTown: A guide to eTown's Community Development District (PDF)
- CFM CDD: Questions about community development districts
- Freddie Mac: Primary Mortgage Market Survey