Seeing “CDD” on a property listing or tax bill and not sure what it means for your budget? You are not alone. Community Development District fees are common in parts of St. Johns County, and understanding them can save you from surprises later. In this guide, you will learn what a CDD is, how fees work, how CDDs compare to HOAs, where they typically show up locally, and exactly how to verify amounts before you make an offer. Let’s dive in.
CDD vs. HOA: What’s the difference?
A Community Development District (CDD) is a special-purpose local government created under Chapter 190 of the Florida Statutes. A CDD can plan, finance, build, operate, and maintain community infrastructure like roads, water and sewer, stormwater systems, and amenities.
An HOA is a private association that enforces community rules and maintains certain common areas under covenants and restrictions. While both collect money from homeowners, they do it for different reasons and under different authority.
- Source of authority: CDDs are governmental special districts; HOAs are private associations governed by deed restrictions.
- What you pay for: CDD assessments fund public infrastructure debt and ongoing operations. HOA dues fund private community expenses under the HOA’s budget.
- How they bill: CDD assessments commonly appear on your county tax bill as non-ad valorem assessments. HOA dues are billed separately by the association.
- Transparency: CDD budgets, meetings, and contracts are public records. HOA records are private with more limited disclosure.
How CDD fees are built and billed
Most CDD assessments include two parts:
- Debt service: Repayment of bonds that financed infrastructure. This is often the largest portion while the bonds are outstanding.
- Operations and maintenance (O&M): Annual costs to operate and maintain district-owned facilities, such as landscaping, utilities, insurance, and staffing.
Assessments can vary by lot type and benefit method. Fees can change year to year when O&M budgets are adopted. Debt service follows a bond repayment schedule and may change if bonds are refinanced or paid off.
In St. Johns County, many CDDs collect through the county tax bill as a non-ad valorem line item handled by the St. Johns County Tax Collector. Some districts bill O&M directly, but the tax bill route is common. If assessments are not paid, the district can record a lien and pursue collection under state law.
Where you typically see CDDs in St. Johns County
CDDs are common in larger master-planned or amenity-rich communities where developers use bonds to fund roads, utilities, stormwater systems, parks, and club facilities. Locally, you often see district financing in bigger projects, including large master plans and the Durbin corridor area. Some newer and multi-phase neighborhoods also use CDDs.
Always verify whether a specific subdivision has a CDD and what the fees are for a particular lot. Do not assume based on neighborhood marketing alone. Your tax bill and the district’s adopted assessment roll are your best checkpoints.
What CDD fees may cost
CDD assessments vary widely. In some small districts you might see a few hundred dollars per year for O&M only. In amenity-rich, bond-funded communities, the total may be several thousand dollars per year when debt service is included. Your actual amount depends on the district’s total bond debt, the number of parcels sharing that debt, your lot type, and the district’s current O&M budget. Always verify the current year amount for your specific parcel.
How to verify a property’s CDD before you offer
Do quick checks early, then dig deeper during your contract’s contingency period. Here is a simple process.
Pre-offer quick checks
- Ask the listing agent or seller for the most recent property tax bill and any CDD disclosure. Look for the non-ad valorem line showing the CDD total.
- Search the parcel on the St. Johns County Property Appraiser website to review non-ad valorem assessments tied to the property.
- Check listing remarks and any community documents for CDD references, then confirm with public records.
During due diligence: documents to request and who to call
- Latest property tax bill showing the CDD line item.
- The district’s current budget and the adopted assessment roll. These show the per-parcel O&M and any debt assessments.
- A written payoff or assessment statement for your parcel from the district manager, with an as-of date.
- Recorded master assessment lien, bond indenture, and resolutions from the St. Johns County Clerk of Court public records.
- Recent CDD meeting minutes and annual reports for any pending rate changes or new bonds.
- Seller disclosures and any HOA documents if both an HOA and CDD are present.
- Your lender and title company documentation for how the assessment is handled in underwriting and closing.
Timeline to expect
- Pre-offer checks: minutes to a few hours.
- Due diligence: allow 7 to 21 days to receive written district statements and copies of bond documents.
- Closing with payoff or transfer items: allow 7 to 14 days for coordination among the closing agent, district, and trustee.
- If you want to prepay or defease capital assessments: expect weeks to months due to bond trustee and legal steps. This is often not practical for a standard residential closing.
Can you pay off a CDD early?
Sometimes, but it is not as simple as writing a check at closing. When a district issues bonds, repayment is pledged across benefitted parcels. Many bonds are callable only on certain dates or in specific minimum amounts. Some districts allow parcel-level prepayment if the bond documents permit it, but it requires formal calculations and redemption through the district and bond trustee.
If prepayment is important to you, request a written payoff statement from the district manager early in your contingency period. Build in extra time and expect additional fees for processing. In many routine sales, the outstanding assessment simply transfers to the new owner and continues to be collected on the tax bill.
How CDDs impact your mortgage and escrow
Lenders review special assessments as part of underwriting. A CDD can affect your escrowed tax estimate and your debt-to-income calculation. Inform your lender early and provide the tax bill and district statements. Some loan programs have specific requirements for special assessments. Your title company will also review recorded liens and confirm how the assessment is handled at closing.
Red flags to watch
- Rapid increases in the O&M budget or a proposed special assessment in recent meeting minutes.
- New bond issuances or additional phases that could increase future debt service.
- Big differences in CDD amounts between similar lot types. Confirm the reason with the assessment roll.
- Restrictions in bond documents that limit prepayment or add costs to payoff.
How CDDs can benefit a community
CDDs provide upfront financing that helps build roads, utilities, parks, and amenities without delaying construction. With public governance and dedicated funding, districts can maintain shared infrastructure for the long term. Amenities may enhance quality of life and connectivity, but value impact varies by community. Always review the district’s budget, capital plan, and maintenance practices before you decide.
Your local checklist and contacts
- Property research: Use the St. Johns County Property Appraiser to confirm recorded non-ad valorem assessments for your parcel.
- Tax bill questions: Check the St. Johns County Tax Collector for billing and payment details.
- Recorded documents: Search the St. Johns County Clerk of Court for bond and assessment records.
- Legal framework: Review Chapter 190, Florida Statutes to understand district authority.
- District manager: Request the current budget, assessment roll, and parcel-specific payoff or assessment statement.
- Your deal team: Keep your lender, title company, and if needed, a real estate attorney in the loop.
Next steps
If a home you love has a CDD, do not panic. Most buyers in St. Johns County navigate CDDs without trouble once they understand the structure and confirm the numbers. Focus on the total annual cost on your tax bill, the bond timeline, and the district’s O&M plans. Build time into your contract to gather written statements and recorded documents.
Want a second set of eyes on a parcel’s CDD before you offer? The Sarah Schwartz Group can help you pull the right records, coordinate with the district manager, and keep your lender and title company aligned so your closing stays on track.
FAQs
What is the difference between CDD fees and HOA dues?
- CDD assessments fund public infrastructure debt and district operations under Florida law, while HOA dues fund private association expenses under community covenants.
Where will I see a CDD on my bills?
- Most CDD assessments show as a non-ad valorem line item on your St. Johns County property tax bill, though some districts may bill O&M separately.
How much are CDD fees in St. Johns County?
- Amounts vary by community, lot type, and bond structure. Verify the current year total on the parcel’s tax bill and the district’s assessment roll before you offer.
Can I negotiate CDD costs at contract or ask the seller to pay?
- You can negotiate credits or closing contributions in your contract. For any payoff, obtain a written district payoff statement and allow extra time for coordination.
Are CDD-funded amenities better maintained?
- It depends on the district’s budget and governance. CDDs have a stable public funding model, but maintenance quality varies by community.
Will a CDD affect my mortgage or insurance?
- A CDD can influence your escrowed tax estimate and underwriting. Tell your lender early and provide the tax bill and district documents for review.
