What is a CDD and how does it affect Home Values

What is a CDD and how will it affect market value of a home?

It’s important that a potential home buyer be aware of these extra fees. The average homeowner that lives in a neighborhood with a Community Development District pays in the area of $100-$130 a month in addition to Taxes and HOA and/or Condo fees.


A Community Development District is a special purpose form of local government described as an independent taxing district. This district exist under Florida Statue Chapter 190 http://www.ccfj.net/FS190CDD.html . The district in my community is governed by a board of 5 supervisors.


There is a misconception that the Developer/Builder borrows money from the County in the form of bonds to pay for amenities. The District (CDD) as a government entity, issues municipal bonds on the lands within the boundaries of the district to fund public infrastructure in the community such as roads, storm water systems, drainage, Utilities etc. It does not normally cover amenities such as pools, clubhouses, golf courses, tennis courts etc.


The CDD imposes a special assessment against all land owners whether it’s a developer, builder, or end user within the community. The bond is usually paid over a 30 year period. So if you purchased a 5 year old home in a neighborhood with a CDD you would inherit 25 years of CDD payments. When the bond is paid off you may still have to pay a maintenance fee. This is called an “Operation and Maintenance Assessment”. This lower payment is for the day to day operations, management and maintenance of the CDD. This is the second component and may be seen on your annual Real Property tax bill.


To see details of your Lee County Florida tax history, or if a property has a CDD, go to www. leetc.com Look at the top middle of the page where it says,” did you know you can also” Click Search Real Property Records –That will bring you to this link.




You can search by Account number, Personal ID#, Name or Address. I have good luck with address. Click on Details, and then Tax Details then look under non ad valorem assessments. There you will find the Name of the Community Development District and the annual amount of the CDD. This may only show the total.  If you want an Operation and Maintenance Assessment breakdown, payoff date and amount or any other information, you can contact the CDD’s name listed. If Google doesn’t work you can contact the Tax Collectors office @ 239-533-6000 to get the phone number of the CDD.


Is a CDD different than an HOA? YES


A Homeowners Association is a not for profit Corporation which is made up of members or homeowners within a specific geographic boundary, and is considered private. These HOA fees are charge separately and have nothing to do with the CDD.


Before you get down on CDD’s, there should be many factors to consider.


1.       When purchasing a home, the CDD should be considered in your budget just as any other expense would.  Include them with P&I, taxes & insurance etc. This may be used as ammunition with your proposed offer.


2.       Is the community with the CDD where you want to live? Have location, demographics, infrastructure and amenities that fit your lifestyle and you will use? Does the price of the home compare to communities close by with no CDD?


3.       Some home owners like the fact that the above mentioned items in their community are for the people in that community and not shared. For instance, if you live in a City, that City may add a  recreation center across town that you will never use. Guess who helps pay for it? Everyone in the City, they don’t have a choice. (I am not mocking City living, I have friends that live in the City and love it, this is only an example)This way you have the right to pick a community with the amenities for you. I hope this makes sense.


To summarize, you may not want to disregard a community that has a CDD if you can get the Location, amenities, utilities and home you want. Look at the comparable sales and consider all the factors before you make an offer. So does a CDD affect the market value of a home? A CDD payment is an expense that has to be factored in with the homes price. So my humble opinion is yes.

Written by: David A. Foster Realtor, GRI, E-pro,





Some of the proceeding information was extracted from CATALINA AT WINKLER PRESERVE                                      COMMUNITY DEVELOPMENT DISTRICT GENERAL INFORMATION PRESENTATION.


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Special Thanks to Valerie Barreto Senior Finance Associate for her professional assistance.