Ever spot a line on a St. Johns County listing or tax bill labeled “CDD” and wonder what it means for your budget? You are not alone. If you are considering master-planned communities like Nocatee or areas near Durbin, understanding CDD fees can help you plan with confidence and avoid surprises later. In this guide, you will learn what a CDD is, how assessments work, how they affect loans and taxes, and the exact steps to verify the numbers for any home you are considering. Let’s dive in.
What a CDD is in Florida
A Community Development District, or CDD, is a special-purpose unit of local government created under Chapter 190 of Florida law. Its job is to plan, finance, build, operate, and maintain public infrastructure within a defined area. That can include roads, water and sewer systems, stormwater management, parks, trails, amenity centers, and landscaping.
To pay for these improvements, a CDD can issue tax-exempt municipal bonds. Property owners inside the district repay that debt, along with ongoing operating costs, through annual assessments. The CDD is governed by a board of supervisors. Early on, the developer typically appoints the board. Over time, residents are elected to serve.
CDD vs. HOA
It helps to separate the roles:
- CDD: A public district that finances and manages infrastructure and amenities. It can levy special assessments and issue bonds. Governance follows public meeting rules and elections.
- HOA: A private association formed under community covenants. It collects dues and enforces rules for shared spaces and property standards.
Many St. Johns County master-planned communities have both. You might pay a CDD assessment for roads and amenities plus an HOA fee for private community standards and services. They are different charges with different purposes.
How CDD assessments work
CDD assessments typically come in two parts. You may see both on your annual property tax bill as separate non-ad valorem line items.
Capital (debt) assessments
These repay the bonds used to build infrastructure and amenities. The assessment amount is set by the district’s bond documents and methodology. Debt assessments usually follow a schedule for the life of the bond and can last for decades until the bonds are retired.
Ongoing operations and maintenance
O&M covers the annual costs to run and maintain district facilities. Think security, landscaping, pools, insurance, and administration. The board typically sets O&M amounts each year through a public budgeting process.
What appears on your tax bill
In St. Johns County, CDD assessments commonly show as separate lines on your property tax bill as non-ad valorem special assessments. Some parcels may be exempt or assessed differently based on the district’s allocation method. In certain cases, developers or sellers may have prepaid part of the assessment for a specific lot. Documentation is key to confirm any prepayment.
What it means for your budget
CDD assessments are an ongoing cost in addition to your mortgage, homeowners insurance, and any HOA dues. To estimate the monthly impact, convert the total annual CDD assessment into a monthly amount. For example, an illustrative $2,400 annual assessment adds about $200 per month to your housing cost. Actual figures vary by community, bond terms, and O&M budgets.
Because assessments are tied to your property, not your loan, they continue whether you have a mortgage or not. If you plan to live in a home long term, you will want to understand how long the debt component lasts and how O&M has changed over time.
How lenders treat CDD assessments
Lenders usually treat CDD and HOA charges as part of your recurring monthly obligations when they calculate your debt-to-income ratio. If your assessment appears on the annual tax bill, your lender still factors it into qualifying. If the assessment is not yet levied, the lender may ask for documentation showing the planned amount or any prepayment agreement.
Whether you are using VA, FHA, or a conventional loan, ask your lender how they will count the CDD. Programs and lender policies can vary, and you will want that number built into your preapproval plan from the start.
Taxes and homestead considerations
CDD assessments are non-ad valorem special assessments. Florida’s homestead exemption reduces ad valorem property taxes, not special assessments. In other words, the homestead exemption generally does not lower the CDD portion of your bill.
Income tax treatment of CDD assessments can be complex. Some parts may be deductible in limited situations. For tax questions specific to your situation, consult a qualified tax professional.
Resale and market impact
CDD assessments stay with the property. They continue until the underlying obligation, such as a bond, is fully paid or the schedule changes. On resale, buyers will review the current assessment and the remaining term. Some buyers see high assessments as a trade-off for robust amenities and planned infrastructure. Clear disclosure is essential so no one is surprised at closing.
St. Johns County specifics to know
St. Johns County includes several large, planned communities that use CDDs for infrastructure and amenities. Districts work within Florida statutes and coordinate with local offices for assessment collection and public records. For any specific address, you can review county property appraiser and tax collector records to see how assessments have been billed historically and what is due for the current year.
A smart due diligence checklist
Use this step-by-step list to verify CDD details before you make an offer or go under contract:
- Request the seller’s CDD disclosure. Review the listing’s supplemental documents for special assessments expected at closing and going forward.
- Ask for the CDD Engineer’s Report, Assessment Methodology, and any Bond Official Statement. These explain what is financed, how costs are allocated, and the bond schedule.
- Check St. Johns County property appraiser and tax collector records. Look up the parcel to see current and prior non-ad valorem assessments.
- Confirm any prepayments. If the seller or developer prepaid part of the assessment, request written proof and keep it with your closing file.
- Verify how billing works. Ask whether the CDD is billed on the tax bill or sent as a direct invoice, and how it will be prorated at closing.
- Talk to your lender early. Share the annual CDD amount so your preapproval reflects the true monthly obligation for VA, FHA, or conventional financing.
- Review CDD budgets and meeting minutes. Look for any planned O&M increases, capital projects, or new bonds under consideration.
- Loop in your title company. Ask them to confirm any recorded liens and verify assessment disclosures in the title work.
- Consult advisors as needed. For tax or legal implications, speak with a tax advisor or real estate attorney.
How to compare homes with and without a CDD
When you compare two homes, consider the full monthly picture, not just the purchase price:
- Add mortgage principal and interest, homeowners insurance, property taxes, and HOA dues if applicable.
- Include the annual CDD assessment divided by 12.
- Factor in utility estimates and maintenance for a realistic monthly budget.
A home with a higher CDD might still be attractive if it offers amenities you value, newer infrastructure, or lower upfront pricing. The key is transparency and a clear, apples-to-apples comparison.
Who runs the CDD and why it matters
Governance affects costs and priorities. In early stages, the developer typically appoints the board. As the community matures, residents are elected to the board. Resident-led boards still follow public governance rules. Reviewing meeting minutes and budgets can reveal planned improvements, O&M changes, and how the board balances service levels with assessment impacts.
What happens if you do not pay
Because CDD assessments are liens on the property, nonpayment can lead to collection actions and, in serious cases, foreclosure under state law. If you run into hardship, contact the district and your loan servicer quickly to discuss options before penalties escalate.
Bottom line for St. Johns County buyers
A CDD is a tool that helps build and maintain the infrastructure and amenities that draw many buyers to St. Johns County communities. It comes with long-term assessments that you should understand and plan for. With the right due diligence and lender guidance, you can decide if the value and amenities align with your budget and goals.
Ready to compare specific homes and line-by-line costs? Reach out to the Kingsley Group of Jax for a local, step-by-step review of CDD assessments, HOA dues, and total monthly housing numbers before you write an offer.
FAQs
What is a CDD fee in St. Johns County?
- It is a non-ad valorem special assessment that funds a community’s infrastructure and amenities through a public district created under Florida law.
How do CDD charges appear on my tax bill?
- They typically show as separate non-ad valorem line items, often split between a debt assessment and an operations and maintenance assessment.
Are CDD assessments the same as HOA dues?
- No. A CDD is a public district that levies assessments for infrastructure and amenities, while an HOA is a private association that manages community rules and private services.
Can I prepay my CDD assessment?
- Sometimes. Developers or owners may prepay debt portions. You need written proof to confirm any prepayment for a specific parcel.
How long do CDD payments last?
- Debt assessments often continue for the life of the bonds, which can span decades; O&M assessments recur annually as set by the board.
Do homestead exemptions reduce CDD assessments?
- Generally no. Florida’s homestead exemption reduces ad valorem property taxes, not non-ad valorem special assessments like CDDs.
How do lenders count CDDs when I qualify?
- Lenders typically include the annual CDD amount in your monthly obligation for debt-to-income calculations, regardless of whether it is billed through the tax bill.
Who controls my neighborhood’s CDD board?
- Early on, the developer usually appoints the board. As the community builds out, residents are elected to serve under public governance rules.
