Some properties reside in communities that are part of a Community Development District (“CDD”) created pursuant to Chapter 190, Florida Statutes. By acceptance of the deed conveying the property, the buyer will be obligated to pay all taxes, fees and assessments imposed by the CDD.
The community development district imposes CDD assessments, on certain properties through a special taxing district. These assessments pay the construction, operation, and maintenance costs of certain public facilities and services of the district and are set annually by the governing board of the district. These assessments are in addition to county and other local governmental taxes and assessments and all other taxes and assessments provided for by law and homeowner’s or condominium association assessments and fees. The present amount of the annual cdd assessments in each community is different and can be vastly varying from house to house even within a community, depending on the decisions of the prior homeowner to pay it down early or not.
CDD assessments are paid in advance, not in arrears, and will be prorated at closing. The CDD fees are included in your tax bill and are escrowed with your property taxes if you have a mortgage. There is usually an HOA fee on top of the CDD fee, however typically when there is a CDD fee, the HOA fee is nominal in comparison. HOA fees are not part of your tax bill, and are billed separately and not part of escrow.
Because each community is different, we can use a sample property in the community to review the tax records and see what the current CDD is on that property based on public tax records.
As a buyer, try not to eliminate a community simply because it has a CDD fee. Often there are wonderful amenities in these communities that the CDD covers, and you just might love it there! Remember that the developer and builders are going to pass along the cost of the amenities to you somehow, so it’s either in the CDD fee, the HOA fees, or the price of the home itself.
Always have your Realtor research and compare all fees for each community you may be interested in so you are looking at the whole picture as you make your new home selection. Ultimately it comes down to affordability and filling your needs and wants. A CDD fee is just one piece of the pie. Contact me today to help determine which communities include a CDD as part of their tax bill. I’ll be glad to help you on your Real Estate journey.