Florida Statutes define a “Community Development District” as “a local unit of special-purpose government… for the purpose of the delivery of urban community development services.” The term for this in government speak is ‘infrastructure.’ And it means everything from sewers and storm water management, to providing clean drinking water and operational street lights. Most home or condo buyers expect their local government to provide these services as part of their property tax.
So what is the role of CDD fees in Florida real estate deals?
Some larger communities are their own CDDs, and residents are expected to reimburse the costs of providing and maintaining amenities like parks, pools, roads and even utilities.
What can you expect to pay for CDD fees in Florida?
With costs rising, it’s best to consult your Lang Realty agent for the current rate. But experts agree you can expect to pay at least $1,000 to $3,000 or $4,000 annually. You’ll see the cost added to your property tax bill annually in two parts: ongoing assessments and repaying a bond.
How long do you pay CDD fees in Florida?
That’s complicated, too. The cost of the assessment is levied annually, but repaying a bond can take as long as 30 years. You can pay that in advance if you choose.
What are the pros and cons of CDD fees?
They ensure maintenance of high-quality amenities that increase property values. The cons are obvious: higher costs and a limited say in how they’re spent. Can you get out of paying CDD fees in Florida? Not really if you move into a CDD community.
