Seeing a “CDD fee” on an Orlando listing and not sure what it means for your budget? You are not alone. Many Central Florida communities use Community Development Districts, and the way fees are shown in listings can be confusing. In this guide, you will learn what a CDD is, how assessments appear on tax bills and MLS remarks, how lenders treat them, and the exact steps to verify costs in Orange County before you make an offer. Let’s dive in.
What a CDD is in Florida
A Community Development District (CDD) is a special-purpose local government created to plan, finance, build, and maintain public infrastructure within a defined community. Examples include roads, stormwater systems, utilities, and amenity centers. CDDs are established under Florida Statutes, Chapter 190.
How a CDD works
- A CDD can issue bonds to fund major improvements. Those bonds are typically repaid over 20 to 30 years through assessments on properties within the district.
- Homeowners also pay annual operations and maintenance (O&M) assessments to run and upkeep district facilities.
- In many communities, the developer initially controls the board, then control transitions to resident-elected board members over time.
CDD vs HOA
- A CDD is a public entity with statutory authority to levy non-ad valorem assessments. Those assessments often appear on your county tax bill or are invoiced by the district.
- An HOA is a private association that enforces covenants and collects dues for private maintenance and services.
- You can have both a CDD assessment and HOA dues in the same community. Budget for each separately.
How CDD assessments show up when you buy
Where you will see them
- Listings may display a “CDD” amount as a monthly figure. Many agents simply divide the annual assessment by 12. County tax records, however, show annual amounts. Always confirm which format you are seeing.
- Assessments are often collected on the annual tax bill as a non-ad valorem line item. Some districts bill separately through their management company.
- On a closing statement, you may see prorated assessments, any negotiated prepayments, or credits related to the tax bill. Ask the closing agent to itemize so you understand each charge.
One-time vs recurring
- Ongoing O&M assessments recur every year.
- Debt-service assessments continue while bonds are outstanding. They end when bonds are paid off or called, subject to the bond documents.
- Districts can levy special or supplemental assessments for new projects or shortfalls if needed.
Mortgage and escrow impact
- Lenders generally count recurring CDD assessments in your qualifying ratios. Treatment can vary by loan program and whether the assessment is on the tax bill or billed separately.
- If the assessment is on your tax bill and your mortgage has an escrow account, the CDD portion is typically escrowed. If billed separately, you will pay it directly, and your lender may still factor it into monthly obligations.
- Ask your lender how they will treat the assessment for qualification and escrow so there are no surprises.
How to verify a CDD in Orange County
Use these local sources to confirm if a property has a CDD and to verify the exact amount you will pay:
- Search the parcel on the Orange County Property Appraiser to view ownership, legal description, and tax components. Look for non-ad valorem assessments in the tax summary.
- Pull the current tax bill via the Orange County Tax Collector. If the CDD is collected on the roll, you will see it itemized there.
- Check the statewide listing for special districts on the Florida Special Districts Accountability Program. Match the district name to the community and locate public documents and contacts.
- Ask the district manager for the current budget, meeting minutes, and any bond schedules. Most CDDs publish budgets, agendas, and minutes on their public websites.
- Request disclosures and backup from the listing agent or seller, including the most recent district budget and confirmation of whether any portion will be prepaid before closing.
Pre-offer checklist
Before you make an offer on an Orlando home in a community that may have a CDD, verify the following:
- Confirm whether the property is inside a CDD and get the exact current year’s assessment amount. Note if it is billed on the tax roll or by separate invoice.
- Ask whether the MLS “CDD” figure is monthly or annual and request supporting documentation.
- Request the district’s current budget and debt-service schedule with bond maturity dates and any permitted early payoff provisions.
- Determine who currently controls the board and whether there are planned assessment changes or new projects.
- Clarify how payments are collected. If on the tax bill, will your lender escrow it? If separate, plan for the payment cadence.
- Ask about prepayment options and whether the seller plans to prepay any portion before closing.
Due diligence once under contract
- Get written confirmation of the exact assessment amount for the calendar year of closing and address prorations in your contract.
- Review bond documents and lien status through district records and county filings.
- Read recent meeting minutes and budgets for trends in increases, pending projects, or shortfalls.
- Ask the district manager about any pending litigation or special assessments.
- Confirm your lender’s treatment of the CDD for qualification and whether escrow is required.
Budgeting your monthly payment
To avoid surprises, build your monthly housing budget using all recurring items:
- Mortgage principal and interest
- Property taxes portion
- HOA dues monthly
- CDD monthly (annual assessment divided by 12)
- Hazard insurance monthly
- PMI if applicable
- Utilities and other recurring community fees
Tip: Verify whether the CDD is shown as annual on the tax bill or listed monthly in the MLS. Always convert the verified annual figure to a monthly number for apples-to-apples comparisons.
Smart questions to ask
When you speak with the district manager or the listing agent, use these questions to get clear answers:
- What is the current annual CDD assessment and how is it billed?
- How long will the debt-service portion continue based on current bond maturity dates?
- How much of the assessment funds O&M versus debt service? Are special assessments planned?
- When is the transition from developer to resident board control complete or scheduled?
- Can we review the last 2 to 3 years of budgets and auditors’ reports?
- Is the district involved in any litigation or facing budget shortfalls?
Red flags to watch
- Sharp increases in O&M assessments over recent years.
- Announced or likely special assessments for unplanned capital projects.
- Bond covenants that require unusually high reserves.
- Lack of transparent budgets, meeting minutes, or clear responses from the manager.
- Conflicting numbers between the MLS, tax bill, and district budget.
Why some buyers still choose CDD communities
CDD-funded neighborhoods often deliver well-kept infrastructure and amenity centers that appeal to many buyers. Some buyers accept higher assessments in exchange for community features and newer systems. Others prefer similar homes without a CDD to lower annual carrying costs. Your best move is to compare two or three target communities side by side using the same monthly-cost formula and verified documents.
Key sources and where to learn more
- Review the legal framework in Florida Statutes, Chapter 190.
- Confirm district status and public filings via the Florida Special Districts Accountability Program.
- Verify parcel details with the Orange County Property Appraiser.
- Pull your most recent tax bill from the Orange County Tax Collector.
If you want a second set of eyes on the tax bill, district budget, and MLS fine print, I am here to help. With a client-first, detail-driven approach, I can walk you through costs, timelines, and contract strategies so you buy with confidence.
Ready to compare Orlando communities with and without CDDs? Connect with Safiya Bourne for a friendly consult and a clear plan.
FAQs
What is a CDD fee in an Orlando home purchase?
- A CDD fee is a non-ad valorem assessment that funds a community’s infrastructure and operations within a special district established under Florida law. It is separate from HOA dues.
Where do CDD assessments appear on Orange County tax bills?
- If the district collects through the tax roll, the assessment appears as a separate non-ad valorem line on your annual tax bill. Some districts bill homeowners directly instead.
How do MLS listings in Orlando show CDD amounts?
- MLS remarks often display a monthly figure by dividing the annual assessment by 12. Always verify the actual annual amount and billing method before budgeting.
How will my lender treat CDD assessments for mortgage approval?
- Most lenders include recurring CDD assessments in your monthly housing expenses. Treatment varies by program and whether the assessment is escrowed on the tax bill or billed separately.
Can the CDD assessment on a home be prepaid or paid off early?
- Some bonds allow early payoff or prepayment options. Check the district’s bond documents and ask the manager or seller whether any portion will be prepaid before closing.
Will CDD assessments on my Orlando home change over time?
- O&M assessments can change annually based on the district’s budget. Debt-service amounts follow the bond schedule unless the bonds are refinanced or paid off.
Are CDD assessments transferable when the property sells?
- Yes. Assessments run with the land, so obligations transfer to the new owner unless a payoff or prepayment is completed and documented before closing.
