Some South Florida communities, particularly newer master-planned developments, include CDD fees in addition to HOA dues. Understanding what CDD fees are — and how they differ from HOA fees — helps buyers evaluate the true cost of a home.
This guide explains CDD fees in plain language.
What Is a CDD?
A Community Development District (CDD) is a special-purpose government that finances and maintains infrastructure — roads, utilities, and amenities — in a community, often through bonds repaid by homeowners over time. CDD fees typically appear on your property tax bill.
They fund the very infrastructure and amenities that make many master-planned communities attractive.
CDD Fees vs. HOA Fees
CDD fees pay off infrastructure bonds and fund maintenance, while HOA fees cover community rules, common areas, and services. A community can have both. Unlike HOA dues, a portion of CDD fees may eventually be paid off once the bonds mature.
Knowing which fees apply — and for how long — is key to understanding your total cost.
What Buyers Should Check
Before buying in a CDD community, ask for the current CDD fee, how much is bond debt versus ongoing maintenance, and the remaining bond term. Factoring these into your budget ensures the home is affordable long-term.
I help buyers understand CDD and HOA costs so there are no surprises.
Frequently Asked Questions
What are CDD fees?
Fees from a Community Development District that finance and maintain community infrastructure and amenities, often via bonds repaid by homeowners and billed with property taxes.
How are CDD fees different from HOA fees?
CDD fees pay off infrastructure bonds and fund maintenance, while HOA fees cover rules, common areas, and services. A community can have both, and CDD bond portions may eventually be paid off.
Should CDD fees affect my decision to buy?
They should factor into your budget. Ask for the current CDD fee, the bond versus maintenance split, and the remaining term to understand the true long-term cost.