Confused about CDD fees when you look at Orlando listings? You are not alone. These charges can be easy to miss and hard to compare, yet they can change your monthly payment and even your loan approval. In this guide, you will learn what a CDD is, how fees show up on tax bills and listings, how to budget for them, and the steps to verify costs before you write an offer. Let’s dive in.
What is a CDD?
A Community Development District, or CDD, is a special-purpose local government formed to plan, finance, build, and maintain community infrastructure for a specific development. In Florida, CDDs are created and governed under Chapter 190 of the Florida Statutes.
Developers often establish a CDD early in a master-planned project. The district can issue bonds to fund roads, drainage, parks, and amenity centers. Homeowners in the district repay those bonds through annual assessments and also fund ongoing operations and maintenance.
Unlike an HOA, a CDD is a public entity. It can hold public meetings, levy assessments, and issue bonds. HOAs, by contrast, are private associations that enforce community covenants and rules.
What CDD fees pay for
CDD assessments typically fund:
- Roads and roadway improvements
- Water management and drainage systems
- Parks, trails, landscaping, and open spaces
- Amenity centers, pools, and related facilities
- Long-term maintenance of shared infrastructure
These projects benefit the community and can enhance daily life. The trade-off is a recurring assessment that you should include in your budget from day one.
How CDD fees work in Orlando
In Orlando and Orange County, you may see two recurring CDD charges:
- Annual Debt Service Assessment, which repays bond principal and interest
- Annual Operations and Maintenance Assessment, which covers upkeep
Many districts collect assessments on your property tax bill as a non-ad valorem charge. Others bill owners directly through a district manager. For bond-financed districts, assessments often stay on the tax bill until the bonds are paid off.
Amounts vary by community size, amenities, bond structure, and how costs are allocated per lot. In many Orlando-area master-planned communities, single-family homes commonly see totals in the range of about $1,000 to $4,000 per year. Some communities may be lower, while larger amenity-rich districts can be higher.
Where CDDs show up in listings and records
Spotting CDDs in listings
- Public remarks: Look for notes like “CDD $X per year” or “CDD applies.”
- Fee fields: Some MLS entries place CDDs in an “Association” or “Other Fees” area.
- Tax section: Listings may show non-ad valorem assessments. Compare those to the county tax bill for accuracy.
Verifying with public records
- Orange County Property Appraiser: Review the tax bill details for non-ad valorem assessments tied to a specific parcel.
- Orange County Tax Collector: Confirm how special assessments are collected and when they are due.
- Clerk of Circuit Court or the district’s site: Search for recorded district documents, boundaries, budgets, and meeting minutes.
- District manager: Request the adopted budget, assessment schedule, any payoff figures, and confirmation of billing method.
Budget impact and your mortgage
Convert annual to monthly
Always translate the annual CDD into a monthly figure. For example, a $2,400 annual assessment equals $200 per month. Add this to your mortgage, taxes, insurance, and any HOA fees to compare total monthly costs across communities.
How lenders treat CDDs
Lenders treat recurring assessments like CDD and HOA dues as monthly liabilities. They include them in your debt-to-income ratios during underwriting. Some loan programs and lenders will escrow the CDD amount with taxes and insurance, while others allow separate payment. Ask your lender how your specific program handles it.
Due diligence checklist
Before you submit an offer:
- Ask the listing agent if the home is in a CDD and request the latest adopted budget and assessment schedule.
- Verify the current year’s non-ad valorem assessments on the county property tax records.
- Contact the district manager to confirm annual amounts, billing method, and any special or one-time assessments.
- Confirm with your lender how the CDD will be counted for qualification and whether it will be escrowed.
- Review HOA documents if both a CDD and HOA exist. Clarify who is responsible for roads, amenities, and landscaping.
At contract and closing:
- Confirm pro-rations or seller obligations for assessments in the purchase contract.
- Obtain a written payoff or statement for any one-time assessments due at closing.
Red flags to watch
- A listing in a known CDD area that omits any mention of a CDD
- Large buy-in fees or capital contributions that surface late in the process
- Unusually high operations and maintenance charges compared with similar communities, without a clear explanation
Quick scenarios: monthly impact
- Scenario A, modest CDD: Annual CDD $720 equals $60 per month. If your mortgage is $1,400, taxes $250, insurance $100, and HOA $60, your total monthly housing cost would be $1,870.
- Scenario B, larger master-planned community: Annual CDD $2,400 equals $200 per month. Using the same mortgage, taxes, insurance, and HOA, your total becomes $2,010.
These amounts affect debt-to-income ratios. For buyers near approval limits, the monthly CDD can make a decisive difference.
Long-term considerations and resale
CDD assessments can change over time. They may decrease when bonds are paid off or increase if operations and maintenance costs rise or if new projects are approved. Because CDDs are public entities, budgets and changes are discussed in public meetings and documented in meeting minutes.
On resale, buyers will compare total ownership costs, including any CDD. Visible amenities funded by the CDD can support value, but recurring fees should be factored into your pricing and marketing strategy.
IDX saved-search tips for CDDs
Use smart search terms and filters to catch CDD communities early:
- Add keywords to your saved searches: “CDD,” “Community Development District,” “special assessment,” “non-ad valorem,” and “district assessment.”
- Where possible, combine an HOA fee filter greater than zero with the CDD keyword list to surface likely communities.
- Create alerts for new construction and master-planned neighborhoods, then apply the CDD keyword filters.
- Example: Set a saved search for new listings where public remarks include “CDD” or where tax fields show non-ad valorem charges, and receive instant alerts.
Work with a local guide
You deserve a smooth, transparent process. I can help you compare communities apples to apples by converting annual CDDs to monthly costs, verifying district documents, and aligning the numbers with your loan program. I will also set up custom IDX listing alerts that flag CDD mentions, so you see the total monthly picture first, not last.
Have questions or want a custom CDD-aware search? Reach out to Deborah Skyy Saleem for personalized guidance.
FAQs
What is a CDD fee in Orlando communities?
- A CDD fee is an annual assessment charged by a public special district to fund and maintain community infrastructure such as roads, drainage, parks, and amenities under Florida’s Chapter 190 framework.
How do I find the CDD amount on my Orange County tax bill?
- Look for non-ad valorem or special assessments on the property’s tax bill; the CDD line items typically display the debt service and operations and maintenance charges.
Do CDD fees affect my mortgage approval?
- Yes, lenders treat recurring assessments like CDD and HOA dues as monthly liabilities in debt-to-income ratios and may escrow them depending on the loan program and lender.
Are CDD fees tax-deductible?
- Tax treatment can be nuanced and may vary by the portion tied to debt service; consult a qualified tax professional for guidance on your specific situation.
How is a CDD different from an HOA?
- A CDD is a public entity that can levy assessments and issue bonds, while an HOA is a private association that enforces covenants and community rules.
Can CDD fees change over time?
- Yes, assessments may decline when bonds are paid off or increase if operations costs rise or new projects are approved; changes are discussed and documented in public district meetings.
