What Is a CDD Fee in Florida?

Seeing a “CDD fee” on a Winter Garden listing and wondering what it means for your payment? You are not alone. Many newer communities across West Orange use CDDs, and the fees can change your monthly budget more than you expect. In this guide, you will learn what a CDD is, how it differs from an HOA, how fees are billed, and how to verify the numbers before you buy. Let’s dive in.

CDD basics in Florida

A Community Development District, or CDD, is a public special district that plans, finances, builds, and maintains community infrastructure for a defined area. The legal framework comes from Florida Statutes, Chapter 190. In practical terms, a CDD helps fund roads, stormwater systems, landscaping, streetlights, and amenity centers.

Developers often create a CDD so they can issue tax‑exempt bonds to pay for large, early infrastructure. Property owners within the district repay those bonds through assessments. A CDD has a public board, holds open meetings, and must follow Florida’s sunshine and public‑records laws. For background on how special districts work statewide, the Florida Association of Special Districts is a useful primer.

What your CDD fee includes

A CDD assessment usually has two parts. Knowing each part helps you budget and ask better questions.

Debt service (capital)

This pays principal and interest on the bonds used to build the community’s infrastructure. The amount for each lot type is typically fixed by the bond schedule until the bonds are retired.

Operations and maintenance (O&M)

This funds ongoing services such as landscaping, lake and drainage management, common‑area utilities, amenity staffing, insurance, and administration. O&M is set in the district’s annual budget and can change year to year.

How CDD fees are billed

Many districts place non‑ad valorem assessments on the county property tax bill. Others bill owners directly. Your lender may require the CDD amount to be escrowed with your mortgage. If a special or transfer assessment is due at closing, you will see it on your settlement statement. CDDs can place a lien and may foreclose if assessments are not paid.

CDD vs HOA: key differences

You may see both a CDD and an HOA in the same community. They serve different purposes.

• Nature and authority: A CDD is a public special district under state law. An HOA is a private association created by community covenants.
• What fees fund: CDD assessments fund public‑in‑nature infrastructure and district operations. HOA dues fund association management, rule enforcement, and upkeep of HOA‑controlled amenities.
• Governance: A CDD board is public and elected over time by resident electors. An HOA board is elected under private governing documents.
• Budget impact: CDD debt service is set by bond covenants and is usually long term. HOA dues can change but typically do not include long bond debt.

How CDD fees affect your budget

Add the CDD assessment to your monthly housing cost just like taxes or HOA dues. Underwriting usually treats recurring CDD assessments as a monthly expense and may require escrow.

Here are hypothetical examples to show the math. Your actual numbers will come from the district’s assessment schedule.

• Example A: $1,200 per year is about $100 per month.
• Example B: $2,400 per year is about $200 per month.
• Example C: $4,800 per year is about $400 per month.

Also budget for possible O&M increases over time. Debt service amounts are generally fixed until the bonds are paid off.

Winter Garden context

Rapid growth around Winter Garden and Horizon West required significant new infrastructure. Many master‑planned communities used CDD bonds to fund stormwater lakes, road work, entry features, trails, and amenity centers. That is why you often see a CDD line when you review listings or seller disclosures in West Orange. Not every neighborhood has a CDD, especially older subdivisions, so verify it for each property.

If assessments are on the tax roll, you can view them under non‑ad valorem assessments on the parcel record with the Orange County Property Appraiser. Some districts bill directly, so also review the CDD’s budget and adopted assessment schedule for your lot type.

Buyer due diligence checklist

Use this step‑by‑step list to confirm costs and avoid surprises.

1. Ask the listing agent and seller whether the home is inside a CDD and request the latest CDD disclosure.
2. Get the district’s current annual budget and adopted assessment schedule that shows O&M and debt service by lot type.
3. Check the purchase contract and closing statements for any upfront capital or transfer assessments due at closing.
4. Review the parcel’s non‑ad valorem assessments with the Orange County Property Appraiser if the CDD bills on the tax roll.
5. Ask your lender whether the CDD will be escrowed and how it counts in qualifying.
6. Read recent CDD meeting minutes or contact the district manager for planned O&M changes or special assessments.
7. Confirm whether the CDD board is still developer‑controlled or resident‑controlled.
8. If you are budgeting long term, review the bond maturity schedule and maximum annual debt service for your lot type.

Smart questions to ask your lender

• Will you include the annual CDD assessment in my monthly escrow, and if so, how will you calculate it?
• How do you treat CDD fees in my debt‑to‑income ratio?
• If a one‑time capital or transfer assessment is due at closing, how will that change my cash to close?
• If the district bills directly instead of on the tax roll, how should I document payments for underwriting?

Common mistakes to avoid

• Ignoring the O&M portion and budgeting only the debt service.
• Assuming the CDD replaces the HOA. They are separate and you may owe both.
• Forgetting to confirm whether the CDD appears on the tax bill or is billed directly.
• Overlooking closing‑day assessments that increase cash to close.
• Not reviewing meeting minutes for signs of future O&M changes.

Bottom line and next steps

A CDD fee is not a mystery cost. It is a structured assessment that funds the roads, drainage, and amenities that make many Winter Garden communities possible. When you break it into debt service and O&M, verify the billing method, and add the monthly equivalent to your budget, you can compare homes apples to apples.

If you want help pulling the district budget, reading the assessment schedule, or planning your monthly payment with confidence, reach out to Richard Sherrod. You will get clear guidance and local context so you can buy with confidence.

FAQs

Will Florida CDD fees show on my Orange County tax bill?

• Often yes, if the district places assessments on the tax roll, but some CDDs bill owners directly, so always verify the billing method for the specific parcel.

How are CDD fees different from HOA dues in Winter Garden?

• CDD fees fund public‑in‑nature infrastructure and district operations, while HOA dues fund private association management, rule enforcement, and HOA‑controlled amenities.

Can a Florida CDD increase my fees after I buy?

• The O&M portion can change each year by budget, while the debt service is usually fixed by the bond schedule unless new bonds are issued in the future.

Will my mortgage lender count CDD fees in qualifying?

• Yes, lenders typically include recurring CDD assessments in your monthly housing expense and may require escrow.

What documents confirm the exact CDD cost for a Winter Garden home?

• The CDD’s adopted assessment schedule and annual budget, the parcel’s tax bill if on the roll, and your closing statement if any capital or transfer assessment is due.