CDD fees are the most consistently misunderstood cost in Florida real estate. They don't appear in the HOA. They don't appear in most listings. They appear on your property tax bill — as a separate line item that surprises buyers at closing or, worse, when the first annual tax bill arrives.
This guide explains what a CDD is, how the fee is structured, which Tampa and Central Florida 55+ communities have CDDs, and exactly what to ask before you buy.
A CDD fee is not an HOA fee. It is a tax assessment on your property tax bill. It does not go away. It runs with the land. It survives changes in ownership. And in many Florida 55+ communities, it adds $800–$3,000+ per year to your carrying costs — a number that doesn't appear anywhere in the MLS listing.
What Is a CDD?
CDD stands for Community Development District. In Florida, a CDD is a special-purpose local government entity created under Chapter 190 of the Florida Statutes. Developers use CDDs to finance the infrastructure costs of building a new community — roads, utilities, stormwater systems, amenities, landscaping — by issuing municipal bonds rather than paying those costs upfront.
The bonds are then repaid over time — typically 20 to 30 years — through an annual assessment levied against every property within the CDD. That assessment shows up on your annual property tax bill as a separate line item. It's not an HOA fee. It's a tax assessment on your property.
How a CDD Fee Is Structured
A typical CDD annual assessment has two parts:
Debt service: The portion that repays the bonds issued to build infrastructure. This is the largest component, and it runs until the bonds are paid off — typically 20–30 years from when the community was built. Once the bonds are retired, this portion goes away or drops significantly.
Operations and maintenance (O&M): Ongoing costs to maintain CDD-owned infrastructure — roads, common areas, stormwater systems. This portion continues indefinitely even after bonds are paid off.
The combined annual assessment can range from under $500 to over $3,000 depending on the community, when it was built, and what infrastructure was financed through the CDD.
How CDDs Appear on Your Tax Bill
Here's what a Hillsborough County property tax bill looks like for a home in a CDD community. The CDD assessment is a separate line — distinct from county taxes, school taxes, and any other assessments:
In this example, the CDD adds $1,339 to a tax bill that would otherwise be $2,578 — a 52% increase over what the home's county and school taxes alone would be. Buyers who budget based on assessed value and county tax rate, without accounting for the CDD, will be materially off on their carrying cost estimate.
Which Tampa and Central Florida 55+ Communities Have CDDs
| Community | County | CDD? | Approx. Annual CDD Cost | Notes |
|---|---|---|---|---|
| Sun City Center | Hillsborough | Varies | No community-wide CDD. Some individual neighborhoods may have sub-CDDs. | Verify per specific property. Most older SCC neighborhoods have no CDD. |
| Kings Point | Hillsborough | No | No CDD | No CDD assessment. Costs covered in condo association fee. |
| Solivita | Polk / Osceola | Yes | ~$1,339/yr (~$112/mo) | CDD on tax bill. Combined with mandatory club fee ($195/mo) and HOA, Solivita's all-in fees are among the highest in the market. |
| Del Webb Bexley | Pasco | Varies | CDD varies by section | Pasco County CDD. Verify current O&M and debt service for specific lots. |
| Latitude Margaritaville Daytona | Volusia | Yes | CDD applies — verify current amount | Newer community — debt service portion still active. CDD on Volusia County tax bill. |
| On Top of the World | Marion | Varies | Some neighborhoods (Indigo East) have CDDs; OTOW Central and Candler Hills generally do not | No community-wide bond. Verify per specific neighborhood and parcel. |
| Trilogy at Ocala Preserve | Marion | No | No CDD | No bond, no CDD. Shea Homes paid infrastructure costs into HOA structure. |
CDD vs HOA: The Key Differences
An HOA fee is a private contractual obligation between you and the homeowners association. It's governed by the community's CC&Rs and Florida HOA law. In theory, you negotiate when you buy. In practice, it's mandatory for all homeowners in the community.
A CDD assessment is a government tax assessment on your property. It is not a private contract. It runs with the land, meaning it transfers to every new owner. It appears on your county property tax bill alongside county and school taxes. It is collected by the county tax collector, not the HOA. It has lien priority similar to property taxes — non-payment can ultimately result in a tax sale.
The practical difference: an HOA can sometimes be negotiated, amended, or restructured by a vote of homeowners. A CDD debt service assessment cannot be eliminated until the bonds are paid off. It is a fixed obligation of the land.
What to Ask Before Buying in a CDD Community
- Is there a CDD on this property? Ask the seller, your agent, and verify independently with the county property appraiser's office. Do not rely solely on the listing.
- What is the current annual CDD assessment? Get the most recent tax bill for the property or look up the parcel on the county tax collector's website. The number changes annually.
- What is the breakdown between debt service and O&M? Debt service goes away when bonds are paid off. O&M continues forever. Understanding the split tells you whether the assessment will drop significantly in the future.
- When were the CDD bonds issued and when do they mature? A community that issued bonds in 2005 with 30-year maturity may be within a decade of retiring the debt service component. A community that issued bonds in 2018 has 17+ years remaining.
- Has the CDD issued any additional bonds? Some CDDs refinance or issue additional bonds for new infrastructure, resetting the clock. Ask whether there are any pending CDD bond issuances.
- Add the CDD to your monthly budget calculation as a tax cost. Divide the annual CDD assessment by 12 and add it to your monthly carrying cost alongside HOA, insurance, and property taxes.
Is a CDD Bad?
Not inherently. CDDs enabled the construction of some of Florida's most appealing 55+ communities — Solivita and Latitude Margaritaville are both beautiful, well-built communities that used CDD financing to develop their infrastructure at scale. The CDD model isn't predatory; it's a financing mechanism that shifts development costs from the developer to homeowners over time.
The problem is disclosure. CDD assessments are material costs that change the real monthly carrying cost of a home by $50–$250/month — and they routinely don't appear in listing data, agents' verbal summaries, or buyer initial research. Buyers who discover CDD assessments after closing sometimes feel misled, even when the information was technically available. Proactive research is the protection.
Communities without CDDs — Kings Point, Trilogy at Ocala Preserve, and most On Top of the World neighborhoods — have simpler cost structures by comparison. Whether that tradeoff is worth it depends on what you're getting for the CDD dollars in each specific community.