What is a CDD fee in Florida real estate? A CDD (Community Development District) fee is an annual charge included in your property tax bill that repays the bonds used to fund infrastructure — roads, utilities, amenities — in a master-planned community. In Northeast Florida, CDDs are common in communities like Nocatee, RiverTown, and Shearwater.

Of all the line items that surprise my buyers at closing or on their first tax bill, the CDD fee is the most common. It's not hidden — it's disclosed on every listing — but a lot of people don't fully understand what they're paying for, whether it goes away, or how to factor it into their total housing cost. Let me explain it clearly so you're not caught off guard.

Why Do CDD Fees Exist?

When a developer builds a large master-planned community in Florida, they need to fund enormous upfront infrastructure costs — roads, stormwater systems, water and sewer lines, parks, amenity centers, and more. Rather than paying for all of this themselves upfront (or building it slowly over time), developers in Florida can establish a Community Development District, a special-purpose government entity authorized under Florida law. The CDD issues municipal bonds to fund the infrastructure, and those bonds are then repaid by homeowners over time through an annual assessment on their property tax bill. Think of it as a community mortgage — you're paying off the cost of the infrastructure you're benefiting from, spread over 15–30 years.

How Much Are CDD Fees in Northeast Florida?

CDD fees in NE Florida's major master-planned communities typically range from $1,500 to $3,500 per year, depending on the community, the village within the community, and the size and location of your lot. In Nocatee, for example, CDD fees vary by village — homeowners in some neighborhoods pay closer to $1,500 annually, while others in premium lot positions or larger homes may pay $3,000 or more. These amounts are disclosed in every property listing and in the community's CDD documentation. When I work with buyers in these communities, I pull the specific CDD amount for every property we consider so you know your true all-in housing cost before making an offer.

Do CDD Fees Ever Go Away?

Yes — eventually. CDD fees are tied to the repayment schedule of the underlying bonds. Once those bonds are paid off, the CDD fee either disappears or drops significantly (a small ongoing maintenance portion typically remains). Bond terms are generally 15–30 years, which means homes in older NE Florida communities may have already paid off their CDD bonds, while homes in newer phases of active communities will carry fees for years to come. This is an important distinction when comparing two homes in the same community — a home in an older phase may have no CDD debt portion, while a new construction home in the newest phase will carry the full bond load. I always check this for my clients.

CDD vs. HOA: What's the Difference?

This comes up constantly. CDD fees and HOA fees are separate, serve different purposes, and are collected differently. Your CDD fee is collected through your property tax bill and goes toward repaying infrastructure bonds. Your HOA fee is typically paid monthly or quarterly directly to the homeowners association, and it covers ongoing community maintenance — landscaping of common areas, amenity center operations, community events, and governance. In a community like Nocatee, you'll pay both. A typical Nocatee homeowner might pay $2,000–$2,500 per year in CDD fees and $350–$600 per year in HOA fees. When comparing communities, always look at both numbers together alongside the base property tax rate to get your true annual housing cost.