When purchasing a new construction home in South Florida, buyers are often surprised by a line item on their property tax bill called the Community Development District (CDD) fee. Understanding this fee is essential, as it can significantly impact your long-term housing costs.
What Is a CDD?
A Community Development District (CDD) is a special-purpose government entity created by developers to finance infrastructure such as roads, water, sewer systems, and community amenities like pools, parks, and clubhouses.
How CDD Affects Your Mortgage Payment
CDD fees are typically bundled with your annual property tax bill. While they’re not part of your mortgage payment, lenders usually escrow these costs, which means they are factored into your monthly mortgage payment.
What Buyers Should Know:
- CDD fees often last 20–30 years.
- Some new construction neighborhoods have no CDD, while others do.
- CDD fees can vary widely, ranging from a few hundred to several thousand dollars per year.
👉 Before committing to a new construction property, always ask: “What is the CDD fee?” Our team carefully reviews this with buyers so there are no surprises.