What in the World are these CDD Fees???

This is the most common question I hear from people looking to buy a home in newer communities in Northeast Florida.  The majority of people relocating here or coming from neighborhoods without CDD fees generally haven’t heard of them. So Here is the Scoop:



What is a CDD? A Community Development District (CDD) is an independent, special purpose government entity typically established by a developer with governmental approval. 

What are they for? CDDs are a way for developers to acquire, operate and maintain infrastructure systems, improvements and services for planned communities. Basically, when developers are building a new master planned community, they take out bond money to pay for the roads, infrastructure & community amenities. The bonds are typically issued for 30 years and the fees associated with these are passed on to the homeowners in the community. 

The CDD fee is comprised of two parts:  the debt (bond) portion and an Operations and Maintenance (O&M) fee. The bond portion will eventually be paid off but the O&M fee will continue forever to cover the costs of maintaining the CDD property, facilities and services.

How Much Are CDD Fees and How Do I Pay Them? CDD fees can vary greatly depending upon the (community age, size & amount of amenities) and sometimes even within communities depending upon the size of the property owned.  Your Realtor(R) can tell you what the fee is for a specific property or you can look it up in county tax records. 

Sometimes developers and homeowners choose to pay off the debt portion of the CDD early for a property. This is completely optional and can be done to reduce monthly payments or to entice buyers. Keep in mind though, the fee is either essentially being passed on in the purchase price of the home or is being paid annually.

CDD fees are collected annually by the county tax collector along with your Property Taxes. If you have a mortgage on your home and escrow your taxes and insurance, the CDD fee will be included in the escrow. If you do not have an escrow account, you will pay your CDD fees annually along with your property taxes.

Why Would I Move Into A Community That Has CDD Fees?  Most communities with CDDs also have great amenities such as pools, tennis courts, a clubhouse, parks, a gym/fitness center or recreation programs for resident use and enjoyment. CDD fees help build and maintain those.

For more information on the fees/amenities of different communities in Northeast Florida feel free to call me at 904-759-8002.