Heard the term “CDD fee” while touring homes in St. Johns and not sure what it means for your budget? You’re not alone. These fees are common in newer, master‑planned communities and can change your monthly cost more than you expect. In this guide, you’ll learn what a CDD is, how fees differ from HOA dues, where they show up on your tax bill, and how to estimate them with confidence. Let’s dive in.
What a CDD is in Florida
A Community Development District, or CDD, is a special‑purpose local government created under Florida Statutes Chapter 190. Its job is to plan, finance, build, and maintain community infrastructure for new development. Think roads, drainage, lakes, parks, and amenity centers.
A CDD is a separate public entity with a governing board. Early on, the developer often controls the board, then residents are elected over time. CDDs have powers that HOAs do not, including issuing municipal bonds and levying assessments on properties inside the district.
What CDD fees cover
CDD costs usually have two parts. Understanding each helps you spot them on your tax bill and plan your budget.
Debt service assessments
Many CDDs issue long‑term bonds to fund initial infrastructure. The annual repayment of principal and interest is called the debt service assessment. You’ll often see this as a non‑ad valorem line item on your county tax bill. Some districts structure a one‑time capital assessment at closing instead of rolling the full cost into annual assessments.
Operation and maintenance
The CDD also runs and maintains assets like amenity centers, landscaping, lighting, lakes, and drainage. The annual operation and maintenance, or O&M, assessment covers these services. O&M is billed each year, commonly on your property tax bill as its own line item.
Billing, prepayment, and enforcement
- Most owners see CDD assessments on the St. Johns County property tax bill as separate non‑ad valorem charges. These are distinct from county taxes and separate from any HOA dues.
- Some CDD bonds allow prepayment of the bonded portion. Others do not. Prepayment rules vary by district and by bond.
- Nonpayment can lead to liens and collection consistent with special district law.
How lenders and title handle CDDs
- Lenders treat recurring CDD assessments like property obligations. They often add the annual amount divided by 12 to your monthly debts when qualifying you.
- If there is a one‑time capital assessment due at closing, it increases cash to close unless your lender allows it to be financed into the mortgage.
- Title and escrow identify unpaid special assessments at closing. These generally attach to the property and can survive closing if not addressed.
CDD vs HOA dues
It’s easy to mix these up. They are different, and you may have both.
- Legal nature: A CDD is a public special district under state law. An HOA is a private association under recorded covenants.
- Purpose: CDD funds pay for infrastructure financing and public‑style operations. HOA dues fund private association services like covenant enforcement, reserves, and any private amenities.
- Payment: CDD assessments are commonly collected on the county tax bill or by the district. HOA dues are billed by the HOA or its management company.
- Governance: CDDs hold public meetings and publish budgets and assessment rolls. HOAs operate under association rules and bylaws.
- Duration and scale: CDDs often have long‑term bond debt, sometimes 20 to 30 years or more. HOA dues fund ongoing services and reserves.
Bottom line: Budget for CDD and HOA separately when comparing homes.
Where CDDs apply in St. Johns
CDDs are common in larger master‑planned communities across St. Johns County. Many buyers look at options like Nocatee, SilverLeaf, and Shearwater. Each of these may have one or more separate CDDs, and assessment levels can differ by phase, lot type, or sub‑neighborhood.
Do not assume the same fee across an entire community. Two homes in the same area can have different districts or different assessment amounts based on location and improvements.
Quick ways to verify a property’s CDD
- Review the seller’s most recent property tax bill for any non‑ad valorem CDD line items.
- Check the St. Johns County Property Appraiser parcel record for district references.
- Ask the listing agent which CDD covers the parcel, then request the current CDD budget and O&M amount.
How to estimate your CDD costs
Use this simple framework to get a reliable monthly number while you shop.
Step 1: Identify the district
Confirm whether the property is inside a CDD and the exact district name. The tax bill, listing agent, and parcel record are your fastest checks.
Step 2: Get current dollar amounts
Request the latest tax bill and the CDD’s current assessment schedule. You need both the bonded debt service and the O&M amounts. For new construction, ask if any capital assessment is due at closing and the amount.
Step 3: Convert to a monthly estimate
Take the total annual CDD assessment and divide by 12. Example, illustrative only: $1,800 per year equals about $150 per month.
Step 4: Account for one‑time assessments
If there is a one‑time capital assessment at closing, decide whether you will pay it in cash or seek to finance it into your mortgage. Ask your lender to model both scenarios so you can compare monthly impact and cash to close.
Step 5: Confirm lender treatment
Ask if the lender will escrow recurring CDD assessments and how they factor into your debt‑to‑income calculation. Confirm whether a capital assessment can be financed, if applicable.
Step 6: Check for future changes
Review the district’s current budget, multi‑year plans, and meeting minutes for any planned projects that could increase O&M or trigger new assessments.
Step 7: Compare total monthly housing cost
When comparing homes, add mortgage principal and interest, property taxes, homeowner’s insurance, HOA dues, and the monthly CDD estimate. This all‑in view helps you compare apples to apples across neighborhoods and builders.
Questions to ask your team
Asking the right questions early can save surprises later.
Ask the listing agent or seller
- Is this parcel inside a CDD? What is the district name and parcel ID?
- What were the total CDD assessments on last year’s tax bill, broken out by debt service and O&M?
- Is any capital or special assessment due at closing? If so, can it be prepaid, and what are the options?
- Are any increases or new bonds expected based on recent district meetings?
Ask your lender
- How will you count the recurring CDD assessment in my monthly qualifying numbers?
- Will you escrow CDD assessments with taxes and insurance?
- If there is a capital assessment, can it be financed into the mortgage? Are there program‑specific rules for VA, FHA, or USDA loans?
Ask title/closing
- Will any unpaid CDD assessments be resolved at closing, or will they remain liens on the property?
- Are there recorded special assessment liens that affect marketability?
Practical tips and red flags
A few smart checks can protect your budget and peace of mind.
Helpful tips
- Get written, current assessment amounts from the tax bill and district budget. Avoid relying on verbal estimates.
- Compare total monthly cost across homes, not just list price or HOA dues.
- For new construction, ask whether there are upfront capital assessments and if prepayment is allowed.
Red flags to review
- Rapidly rising O&M budgets or multiple new bond issues on the horizon.
- Unclear or undisclosed capital assessments at closing.
- District still under developer control for an extended period without a clear transition timeline. Early developer control is common, but you should understand future priorities and budgets.
How Cindy can help
You deserve clear numbers and a confident plan. I help you identify the exact district, pull current budgets and tax bill lines, and model your monthly cost so you can compare Nocatee, SilverLeaf, Shearwater, and surrounding St. Johns options with clarity. If you are relocating or using VA or other financing, I coordinate with your lender so CDD treatment is understood upfront. Se habla español.
If you want a calm, concierge‑level process backed by practical know‑how, let’s talk. Luxury is a service, not a price point. Connect with Cindy James to plan your move with confidence.
FAQs
What is a CDD fee in St. Johns County?
- A CDD fee is an assessment levied by a public special district to repay infrastructure bonds and fund annual operation and maintenance for community assets.
How do CDD fees show on my tax bill?
- Most CDD assessments appear as separate non‑ad valorem line items on your St. Johns County property tax bill, distinct from county taxes and HOA dues.
Do communities like Nocatee or SilverLeaf always have the same CDD fee?
- No, large master‑planned areas can include multiple CDDs and assessment levels that vary by phase, lot type, or sub‑neighborhood, so verify for the specific parcel.
Can I prepay a CDD bond assessment in Florida?
- Sometimes, but not always; prepayment rights depend on the district’s specific bond documents and terms, so you must confirm with the district manager.
How do lenders treat recurring CDD assessments?
- Lenders typically add the annual CDD amount divided by 12 to your monthly obligations for qualifying and may escrow it with taxes, subject to program rules.
What happens if CDD assessments are not paid?
- Nonpayment can lead to liens and collection under special district law, so treat CDD assessments like other property obligations.
