What Is a CDD Fee, and How Does It Change What a Home Costs?
What is a CDD fee, and how does it change what a home in Lakewood Ranch or Wellen Park actually costs you? A CDD is a fee you may not see when you're comparing HOA dues, and as a Sarasota REALTOR® who spent more than 30 years as a real estate appraiser, I can tell you it can make a real difference in your monthly cost. Two homes can have the same price and the same HOA dues and still cost you very different amounts every month.
Carolyn Yates is a REALTOR® with Coldwell Banker Realty in Sarasota, Florida, helping buyers moving here from out of state compare what homes actually cost, not just what they see in the listing.
What does CDD stand for?
What does CDD stand for? Community Development District. It's how many newer Florida communities pay for things like roads, infrastructure and community amenities. You'll find them in a lot of the communities buyers ask me about, including Lakewood Ranch and Wellen Park. Some districts go by a different name, such as an improvement district, but they work in a similar way.
Where does the CDD fee show up?
Where does the CDD fee show up? Typically on your property tax bill, separate from your HOA dues. That's exactly why buyers miss it. You compare HOA dues between two homes, they look the same, and the difference is sitting on a different bill.
What are the two parts of a CDD fee?
What are the two parts of a CDD fee? There are usually two.
- The debt portion. This helps pay back the bonds used to build the community. In some communities, this portion can eventually be paid off.
- The operations and maintenance portion. This covers the ongoing upkeep of what the district built and maintains. This portion continues.
So when someone tells you the CDD "goes away," ask which part they mean. The debt portion may end someday. The maintenance portion doesn't.
Is the CDD fee the same for every home in a community?
Is the CDD fee the same for every home in a community? Don't assume it is. It can vary from home to home within the same community. That's why an average for the neighborhood isn't good enough when you're about to make an offer. You want the number for that specific property.
How do I find the CDD fee for a specific home?
How do you find the CDD fee on a home you're looking at? Before you write an offer, here's how to get it:
- Ask for it. Your agent can request the amount from the listing agent. Ask for the most recent tax bill, not just a number in the listing notes.
- Look up the tax bill. The county tax collector's website shows the property's tax bill. Lakewood Ranch spans both Manatee and Sarasota counties, so check the county the home is actually in. Wellen Park is in Sarasota County.
- Ask about the debt portion. Find out whether the bond portion has been paid off on that home, and if not, whether it can be.
- Put it in your monthly budget. Divide the yearly CDD amount by twelve and add it to your mortgage, insurance and HOA dues. That's the real monthly number to compare.
What are the most common CDD mistakes buyers make?
Comparing HOA dues and stopping there. The CDD is on the tax bill, not the HOA statement. Compare both.
Using the neighborhood average. The fee can be different from one home to the next in the same community.
Assuming the whole fee goes away. In some communities the debt portion can be paid off. The maintenance portion continues.
Finding out after you buy. You want that number in your budget from the beginning, not when the first tax bill arrives.
Trusting last year's tax bill to tell the whole story. In Florida, the current owner's property taxes may reflect exemptions that won't carry over to you. Look at the CDD line and the taxes separately, and ask how your own tax bill is likely to look.
What does this look like in real life?
These are situations I see often. They aren't specific clients.
The two "identical" homes. A buyer is choosing between two homes with the same price and the same HOA dues. One has a higher CDD on its tax bill. Once the yearly amount is divided into the monthly budget, the two homes don't cost the same at all.
The buyer comparing new construction with resale. A newer section of a community and an older one can carry different CDD amounts. That difference belongs in the comparison, right next to price and HOA dues.
The buyer shopping from out of state. They've never heard the term. A CDD isn't a reason to walk away. They just need the number before they make an offer, not after.
Is a CDD a reason to avoid a community?
Is a CDD a reason to walk away from a home? No. Some of the most popular communities here have them, and that fee helps pay for roads, infrastructure and the amenities many buyers want. You just want that number in your budget from the beginning. If you're also weighing a gated golf community, here's how those homes are priced: How Do You Price a Home in a Gated Golf Community?
Frequently asked questions
What is a CDD fee in Florida?
What is a CDD fee in Florida? It's a fee charged by a Community Development District, the way many newer Florida communities pay for roads, infrastructure and community amenities. It typically shows up on the property tax bill, separate from HOA dues.
Is a CDD fee the same as an HOA fee?
Is a CDD fee the same as an HOA fee? No. They're separate. HOA dues are paid to the homeowners association. The CDD fee typically appears on your property tax bill. Many homes have both.
Does the CDD fee ever go away?
Does a CDD fee ever go away? Partly, in some communities. The debt portion, which pays back the bonds used to build the community, can eventually be paid off in some cases. The operations and maintenance portion continues.
Do Lakewood Ranch and Wellen Park have CDD fees?
Do Lakewood Ranch and Wellen Park have CDD fees? Many homes in both communities are part of a special district, and the amount varies by home. Always check the specific property's tax bill before you make an offer.
How much is the CDD fee in Lakewood Ranch?
How much is the CDD fee in Lakewood Ranch? It depends on the home. It can vary even within the same community, so the only number that counts is the one on that property's tax bill.
Comparing homes in Lakewood Ranch or Wellen Park?
Carolyn Yates is a REALTOR® with Coldwell Banker Realty in Sarasota, Florida, helping buyers moving here from out of state compare what homes actually cost, not just what they see in the listing. I work from Parrish to Punta Gorda, including Sarasota, Osprey, Venice, Nokomis, Lakewood Ranch, Bradenton and Wellen Park.
Send me a message. I'll help you compare what they actually cost, not just what you see in the listing.
Call or text: 941-400-6838
Priced Like an Appraiser, Staged Like a Designer.
Carolyn Yates, REALTOR®, Florida License SL3552680
Coldwell Banker Realty, 8181 S Tamiami Trl, Suite B, Sarasota, FL 34231
Equal Housing Opportunity.
