Do CDD fees feel like alphabet soup when you look at Bonita Springs listings? You are not alone. Many Southwest Florida communities use Community Development Districts to build and maintain roads, lakes, and amenities, and those costs show up as ongoing assessments. In this guide, you will learn what a CDD is, how fees are billed, where to verify the exact amount for a property, and how to factor it into your monthly budget with confidence. Let’s dive in.
What a CDD is in Florida
A Community Development District is a special-purpose local government that plans, finances, builds, and maintains infrastructure within a defined community. In Florida, CDDs are established and governed by state law in Chapter 190 of the Florida Statutes. They are common in large, master-planned neighborhoods across Bonita Springs and greater Lee County.
Developers often create a CDD during build-out to fund roads, water management, parks, and amenity centers. The district typically issues municipal bonds to pay for construction. Over time, property owners within the district repay those bonds and fund ongoing maintenance through assessments.
As a community matures, control of the CDD board usually transitions from the developer to homeowner-elected supervisors. The district continues to exist and operate under state law unless it is formally dissolved.
How CDD fees work and where they appear
CDD charges are usually called non-ad valorem assessments. You will commonly see two parts:
- Debt service assessments. These repay the bonds that financed infrastructure. They last as long as the bonds remain outstanding, often 10 to 30 years or more.
- Operations and maintenance (O&M) assessments. These fund ongoing upkeep of roads, stormwater systems, landscaping, and amenities. O&M continues as long as the district exists.
Some districts may also levy special or supplemental assessments for unplanned projects or revenue shortfalls. Annual budgets adopted by the CDD board can change assessments from year to year.
In many Bonita Springs communities, CDD assessments appear on the Lee County property tax bill as non-ad valorem line items. When certified to the tax roll, they are collected alongside property taxes. In other cases, the district may invoice owners directly for O&M or special assessments. Always confirm how a specific property is billed.
Marketing materials sometimes show CDD fees as a monthly figure. Verify whether that number reflects true monthly billing or is simply the annual amount divided by 12 for comparison.
Prepayment, billing changes, and enforcement
Some districts allow owners to prepay the remaining principal on the debt service portion. Prepayment, if permitted, is governed by bond documents and may include premiums or other costs. O&M is ongoing and not prepayable.
If assessments are on the tax bill, nonpayment is enforced through the same process used for other non-ad valorem taxes, including liens or tax certificate sales. For direct-billed assessments, the district uses its own collection procedures.
How to confirm a CDD for a Bonita Springs property
You can verify the existence of a CDD and confirm current assessments with public records and district documents. Focus on these sources and steps:
Where to look
- Lee County property tax bill. If the CDD is certified to the tax roll, you will see the district name and annual amount listed as a non-ad valorem assessment.
- Lee County Property Appraiser parcel record. Parcel pages can show special districts and taxing entities tied to the property.
- District budgets and assessment rolls. Each CDD adopts an annual budget and maintains public records such as “final assessment rolls” and meeting minutes.
- Recorded community documents and closing statements. Master documents and past closing files often describe assessment obligations.
- MLS listing fields. Many listings note a CDD amount. Confirm whether it is monthly or annual and whether it includes both debt and O&M.
How to verify the correct amount
- Pull the current tax bill for the parcel and look for non-ad valorem lines with the CDD’s name.
- Obtain the CDD’s adopted budget and final assessment roll to see how the charge breaks down between debt service and O&M.
- Ask the seller or listing agent for the most recent CDD documents and any invoices or statements showing how the charge is billed.
- Confirm if the listing’s “CDD” figure is monthly or annual, and whether it includes all components.
Calculate your monthly carrying cost
To compare homes apples to apples, convert everything to monthly. Add your mortgage principal and interest, property taxes, homeowner’s insurance, HOA dues, and CDD assessments. Then divide the total annual number by 12.
Here is an illustrative example only:
- Annual property tax: 3,000
- Annual CDD assessment (debt + O&M): 1,200
- Annual HOA dues: 1,800
- Homeowner’s insurance: 1,200
- Mortgage principal and interest: 12,000
- Total annual carrying cost: 19,200
- Monthly carrying cost: 19,200 ÷ 12 = 1,600
Tip: If a listing shows “CDD 150,” confirm whether that is billed monthly or simply the annual assessment divided by 12. If it is monthly, the annual equivalent is 150 × 12 = 1,800.
CDD vs HOA: what you pay for
Both CDDs and HOAs collect mandatory payments, but they serve different purposes.
- Governance. A CDD is a local government with a board of supervisors. An HOA is a private nonprofit governed by covenants and a homeowner board.
- Authority. A CDD can issue bonds and levy non-ad valorem assessments, often collected through the county tax system. An HOA collects dues and can levy special assessments under its documents, but it does not have taxing authority.
- Transparency. CDD budgets, financials, and meeting minutes are public records. HOA records are private to members, though buyers usually receive key documents during due diligence.
- Uses of funds. CDDs finance and maintain public-type infrastructure like roads, stormwater systems, and larger amenity centers. HOAs typically manage community rules, private landscaping, and amenity operations.
Financing and underwriting considerations
Lenders consider mandatory assessments when they evaluate your debt-to-income ratio. Expect CDD amounts to be included in your monthly housing expense for underwriting.
If a CDD assessment appears on the tax bill, many lenders escrow it with property taxes. If O&M is billed directly by the district, escrow treatment depends on lender policy. Government-backed loans such as FHA, VA, and USDA account for recurring assessments when determining borrower capacity. For specifics, your lender will reference their investor or program guides.
Resale impact and buyer preferences
CDDs can support well-maintained infrastructure and robust amenities that some buyers value. Others are fee-sensitive and prefer no additional assessments. High debt service charges on older bonds or unexpected supplemental assessments can weigh on resale pricing and demand.
When comparing properties, include annual CDD plus HOA dues and taxes to understand your true monthly carrying cost. This helps you evaluate the value of the community’s amenities and infrastructure alongside the ongoing cost.
Checklist: how to verify a CDD charge
Use this quick reference when you tour or shortlist homes in Bonita Springs:
- Confirm the CDD’s name and whether the property is within the district.
- Pull the most recent Lee County tax bill for the parcel to see certified non-ad valorem assessments.
- Request the CDD’s adopted budget and final assessment roll for the current fiscal year.
- Ask whether the assessment is on the tax roll or direct-billed by the district.
- Verify if the figure shown in the MLS is monthly or annual and whether it includes both debt and O&M.
- Ask about any special assessments, pending budget changes, or known capital needs.
- If financing, notify your lender so they can document and escrow the assessment as needed.
- Add the verified annual CDD to your total yearly housing cost, then convert to a monthly number.
Common pitfalls to avoid
- Assuming the CDD fee in a listing is monthly without checking. Always confirm the period.
- Forgetting direct-billed O&M or special assessments when budgeting. Include all components.
- Believing the CDD will disappear after bonds retire. O&M typically continues as long as the district exists.
- Skipping district records. Budgets and meeting minutes can signal increases or upcoming projects.
- Waiting until closing to ask about prepayment. If allowed, it requires lead time and documentation.
Ready to compare communities with confidence?
You deserve clear numbers and a smooth process. If you want help verifying a home’s CDD charges, breaking down monthly costs, or comparing neighborhoods across Bonita Springs and nearby cities, connect with the local team that does this every day. Reach out to Donna Pyle to set up a consultation and get a clear path forward.
FAQs
What is a CDD fee in Bonita Springs?
- It is a mandatory non-ad valorem assessment that funds a Community Development District’s bond repayment and ongoing maintenance for infrastructure and amenities within the district.
How long do CDD assessments last in Florida?
- Debt service assessments continue until the bonds are paid off, often 10 to 30 years or more, while operations and maintenance assessments continue as long as the district exists.
Where will I see the CDD charge for a property?
- Many CDD assessments appear on the Lee County property tax bill as non-ad valorem line items; some districts invoice owners directly for O&M or special assessments.
Can I pay off my CDD?
- Some districts allow prepayment of the debt service portion under the bond documents; prepayment terms vary and O&M remains ongoing.
How do CDD fees affect my mortgage approval?
- Lenders include mandatory assessments in your monthly housing expense when calculating debt-to-income ratios and may escrow CDD charges if they are billed on the tax roll.
Are CDD fees the same as HOA dues?
- No. A CDD is a local government entity that finances infrastructure and can levy assessments, while an HOA is a private association that manages community rules, dues, and amenities.
Do CDD fees impact resale value?
- They can. Some buyers value CDD-funded amenities, while others are fee-sensitive; include CDD and HOA costs in your monthly analysis when comparing properties.
