From Miami to the growing neighborhoods of Orlando and Tampa, community leaders may encounter terms and structures that influence how they manage and shape the living experience for residents. One common entity structure in Florida is the Community Development District (CDD), also known as a special district.
Established under Florida Statute Chapter 190, CDDs are special-purpose local governments that help transform undeveloped land into vibrant, master-planned communities. This law offers developers a method to fund large-scale projects and build essential infrastructure, including roads, utilities, parks, and recreation spaces, as well as amenities.
CDD fees are a key component of these districts. This guide will define CDD fees in Florida, and explain what they cover, and their essential role across the state.
What are CDD fees?
CDD fees are special assessments charged to homeowners living within a community development district. These funds support the planning, construction, and ongoing maintenance of the public infrastructure and shared amenities that define many of Florida’s master‑planned communities. They make it possible to build and sustain desirable features like resort‑style pools, parks, and extensive trail systems that appeal to residents statewide.
Unlike homeowners association (HOA) dues, which are paid to a private association, CDD fees are included on the homeowner’s annual property tax bill and collected by the county tax collector. This public collection process simplifies payments and ensures long‑term stewardship of the community’s amenities. By consistently reinvesting in these assets, CDDs help preserve property values and strengthen a neighborhood’s overall market appeal.
Taylor Nielsen, manager at Rizzetta & Company, a FirstService Residential company, explains, "The payment structure is a key differentiator between HOAs and CDDs. CDD fees are assessed annually on the tax roll through the property appraiser. This method integrates the payment into homeowners’ property taxes, streamlining the collection process."
CDD assessments fund long‑term infrastructure and community amenities. With strong leadership and support of an experienced management company, districts can maintain financial stability, meet regulatory requirements, and plan effectively for future needs.
What do Florida CDD fees cover?
The scope of what Florida CDD fees cover is extensive and specifically tailored to the unique needs and characteristics of communities across the state. Developers utilize bonds to finance the core infrastructure, which can include a wide array of public assets:
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Core infrastructure: Construction of roadways, installation of streetlights, traffic signals, and advanced water management systems to handle the state’s frequent rainfall to mitigate flooding risks.
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Utilities: Development of stormwater management systems, main water and sewer lines, and even reclaimed water systems for landscape irrigation.
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Outdoor amenities: Creation and upkeep of parks featuring playgrounds with sunshade structures, dog parks, sports courts for tennis and pickleball, and extensive walking or nature trails that take advantage of the state’s natural scenery and weather.
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Recreational facilities: Development of community clubhouses that serve as social hubs, resort-style swimming pools designed for year-round use, and modern fitness centers for yoga and other health and wellness classes.
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Landscaping and common areas: Maintenance of common areas, community entryways, medians, and other shared green spaces.
Any public amenity or infrastructure owned by the district and designed to enhance the Florida living experience can be funded through CDD fees. This also extends to lifestyle programming and staffing for amenity centers that help foster a sense of community and provide services aligned with resident expectations.
This financing model enables the development of dynamic communities with resort-style living that might otherwise be financially unfeasible. "There is a huge demand for active adult communities that are highly amenitized, include a food and beverage component, and fitness options such as shuffleboard and pickleball,” adds Nielsen.
The structure of CDD fees in Florida
To understand financial obligations, it’s important to know how Florida CDD fees are structured. The total annual assessment is typically divided into two separate components: bond repayment and Operations and Maintenance (O&M).
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Bond Repayment: This portion of the fee is allocated to repaying the municipal bonds that financed the community's initial infrastructure and amenities. The bond repayment amount is fixed and typically lasts for a term of 20 or 30 years. Once the bond is fully paid off, this part of the assessment is eliminated, and homeowners are only responsible for the O&M portion.
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Operations and Maintenance (O&M): This component covers the annual expenses of running the district. It includes costs for landscaping, utility bills for common areas, professional management, security, and insurance. The O&M budget is decided annually by the CDD’s board of supervisors during a public meeting. This amount can fluctuate from year to year based on the community's needs, vendor contracts, and other operational costs.
Typical costs of Florida CDD fees
Florida CDD fees can vary significantly from one community to another. The total amount is influenced by factors such as the scale of the development, the number and quality of the amenities, and the total cost of the infrastructure financed by the bonds. For example, a community with an elaborate clubhouse, multiple pools, and extensive landscaping will likely have higher CDD fees than a smaller community with more basic amenities.
Annual Florida CDD fees typically range from several hundred to a few thousand dollars. This information is disclosed on the property tax bill and is a matter of public record, providing transparency and accountability in financial planning.
The value of Florida CDD fees
Florida CDD fees are vital to provide a stable, long-term funding source for building and maintaining high-quality, large-scale communities. Under Florida Statute Chapter 190, developers can utilize tax-exempt bonds, giving them access to low-interest financing to make ambitious projects a reality. Nielsen adds, "the long-term benefit is the low-interest funding opportunities, especially the tax exemption portion, because it is funded by the government. "For residents, this structure funds the impressive amenities that enhance lifestyle and property values.”
Furthermore, a Florida CDD operates with transparency and public accountability. The district is governed by a publicly elected board of supervisors who must adhere to Florida’s Sunshine Laws. These laws mandate transparency in all operations and decision-making, so that fees are managed responsibly for the direct benefit of the community.
Beyond basic infrastructure, CDD fees enable communities to evolve over time, adding new amenities, upgrading existing facilities, and implementing sustainability initiatives. CDD fees also help fund lifestyle programming and professional management partnerships that deliver a cohesive, high-quality living experience, enhancing resident satisfaction and maintaining property values.
CDD fees vs. HOA fees
A common point of confusion is the distinction between CDD and HOA fees. While both are paid by homeowners, they serve different purposes and are managed by different entities.
Purpose and scope:
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CDD fees fund the construction and maintenance of public infrastructure like main roads, clubhouses, and central water management systems, as well as large-scale community amenities.
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HOA fees fund the management of private community aspects. This includes enforcing deed restrictions, maintaining architectural consistency, managing common areas and spaces, and sometimes managing smaller, neighborhood-specific amenities not owned by the Florida CDD.
Payment structure:
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CDD fees are collected annually as an assessment on the county property tax bill.
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HOA dues are typically paid monthly or quarterly, directly to the Florida HOA or its designated management company.
Many communities in Florida are made up of both a CDD and an HOA. Homeowners must account for all fees and dues, as these combined costs are part of the overall housing expenses.
A clear understanding of Florida CDD fees is essential for both the board and its management partner. FirstService Residential and Rizzetta & Company bring proven experience in managing the complexities of CDDs and their associated fees. Our experience equips boards with the tools and knowledge to drive financial stability and operational success.