Seeing “CDD fee” on a Lee County listing and not sure what it means for your budget? You are not alone. Many Florida communities use CDDs, and the fees can change your monthly payment more than you expect. In this guide, you will learn what a CDD is, how fees show up on tax bills and at closing, and how to compare communities by total monthly cost so you can buy with confidence. Let’s dive in.
CDD basics in Lee County
A Community Development District (CDD) is a local unit of government that plans, finances, builds, and maintains community infrastructure within a set boundary. The legal framework comes from Chapter 190 of the Florida Statutes.
CDDs are different from HOAs. A HOA is a private association that enforces rules and may manage certain amenities. A CDD is a public entity that can issue bonds, adopt budgets, and levy non-ad valorem assessments to pay for roads, water management, and shared facilities. Many master-planned communities in Lee County use a CDD alongside a HOA, and the fees are separate.
Most CDD assessments fall into two categories:
- Debt service (bond): Pays principal and interest on bonds that funded the initial infrastructure. Terms often run 20 to 30 years.
- Operations and maintenance (O&M): Covers ongoing upkeep, insurance, utilities, management, and common-area maintenance.
Early in a community’s life, debt service can be higher. As bonds are paid down, totals can change. New projects or special assessments can also increase costs over time. For a plain-language overview of how CDDs work, see the Florida Association of Special Districts.
How CDD fees show up when you shop
Listings often flag CDD fees in a dedicated field or the public remarks. You might see an annual amount, such as “CDD $2,500/yr,” or a monthly equivalent. If you see a monthly number, confirm whether it includes both the bond portion and the O&M portion.
Seller disclosures and community documents should indicate if the property lies within a CDD. Ask the listing agent for the current CDD budget and the lot-specific annual assessment so you can compare apples to apples.
Bills, tax rolls, and closing
On your tax bill
CDD assessments are non-ad valorem. In many Lee County districts, they appear as a separate line on the county tax bill. You can verify the current year’s line item through the Lee County Tax Collector or view property records via the Lee County Property Appraiser. Some districts bill owners directly for O&M instead of using the tax bill, so ask how your district bills.
At closing
If the seller prepaid the year’s CDD assessments on the tax bill, you will usually reimburse the seller for your prorated share at closing. Title and closing agents handle this the same way they prorate property taxes.
Transfer and special assessments
Some CDDs charge an administrative transfer or processing fee when a home changes hands. These are typically modest and set by each district. If a special assessment has been approved, that obligation needs to be disclosed and addressed at closing. Ask for a CDD payoff or assessment status letter so you know exactly what is due.
How lenders view CDD assessments
Most mortgage lenders treat recurring CDD assessments as part of your monthly housing costs. They may escrow these amounts and include them in your debt-to-income ratio. Large one-time or unusual assessments can also affect qualification. Ask your lender early how they handle both recurring and special assessments under your loan program.
Compare total monthly cost
When you compare communities, look at the full payment picture, not just principal and interest. Add these items to your worksheet:
- Mortgage principal and interest
- Property taxes (annual amount ÷ 12)
- Homeowners insurance (annual premium ÷ 12)
- HOA dues (monthly)
- CDD assessment (annual total ÷ 12; include bond and O&M)
- Other recurring fees (for example, private trash or gated-entry services)
Example only: If a home’s listing shows CDD $2,400 per year and HOA $150 per month, add $200 per month for the CDD ($2,400 ÷ 12) plus $150 HOA to your monthly budget. If your taxes are $6,000 per year ($500 per month) and insurance is $2,400 per year ($200 per month), you would add $200 + $150 + $500 + $200 to your mortgage principal and interest to see the true monthly obligation.
Verify amounts in Lee County
Before you make an offer or remove contingencies, pull the official numbers:
- Check whether the CDD appears on the tax bill with the Lee County Tax Collector and confirm the line-item amount.
- Review property details and tax history via the Lee County Property Appraiser.
- Ask the listing agent for the current CDD budget, assessment roll, and any notices of special assessments.
- Request a payoff or assessment status letter from the CDD administrator through your title company.
- For district contacts, start with Lee County Government or the district’s own website to locate budgets, minutes, and assessment documents.
Smart questions and red flags
Ask these questions as you compare communities:
- Is the CDD amount shown annual or monthly, and does it include both bond and O&M?
- How are assessments billed: on the tax bill or direct invoice?
- Has the district approved any special assessments or new capital projects?
- Is the developer still in control of the CDD board, and are more phases planned?
- Did O&M increase sharply in the last year, and why?
Red flags to note:
- Large one-time or multiyear special assessments recently approved or proposed
- Rapid O&M increases without clear explanations in budgets or minutes
- Incomplete infrastructure that could require future bonds
Quick buyer checklist
Use this list during showings and before you write an offer:
- Get the current CDD budget and the lot’s annual assessment
- Confirm if the listed CDD amount is current and includes all components
- Add CDD (annual ÷ 12) to your monthly cost worksheet
- Ask your lender how CDDs are escrowed and counted for approval
- Have the title company obtain a CDD payoff or assessment status letter
- Review recent CDD minutes for projects or fee changes
Make a confident move in Lee County
When you understand CDDs, you can compare communities on total monthly cost and avoid surprises at closing. If you want local context or help pulling the right documents, connect with Julieta Bruni for personalized guidance and a smooth, bilingual experience.
FAQs
What is a CDD in Florida?
- A CDD is a local government unit that finances and maintains community infrastructure within a defined area under Florida Statutes Chapter 190.
How are CDD fees collected in Lee County?
- Many districts place non-ad valorem assessments on the county tax bill; some bill O&M directly to owners, so confirm the billing method for your property.
Do CDD fees change each year?
- O&M can change annually based on the district budget; bond payments are typically fixed per the schedule, and special assessments can be added if needed.
Do CDD fees replace HOA dues?
- No; CDDs and HOAs serve different roles, and communities can have both with separate fees.
How do CDD fees affect mortgage approval?
- Lenders count recurring CDD assessments in your monthly obligations and may escrow them, which can affect your debt-to-income ratio.
How can I confirm if a property is in a CDD?
- Review the listing remarks, check tax records with the Lee County Tax Collector and Property Appraiser, and contact the district listed by Lee County Government.
