What Are CDD Fees in Orlando?

Seeing “non-ad valorem” lines on an Orlando tax bill and wondering what they mean for your budget? You are not alone. Many master-planned communities in Orange County use Community Development Districts, and the fees can affect your monthly payment and neighborhood comparisons. In this guide, you will learn what a CDD is, how fees show up on your bill, how to estimate monthly costs, and the exact steps to verify amounts before you buy. Let’s dive in.

CDD basics in Orlando

A Community Development District is a special-purpose local government formed under Chapter 190 of the Florida Statutes. In Spanish, you may hear it called Comisión de Desarrollo Comunitario or distrito de desarrollo comunitario. A CDD plans, finances, builds, and sometimes maintains public infrastructure within a defined area.

Developers use CDDs to issue bonds that pay for major items up front. Think roads, water and sewer extensions, stormwater systems, entryways, lakes, parks, amenity centers, and landscaping. Spreading those capital costs across many owners over many years can keep lot prices lower at the start and speed up community buildout. That is why many large master-planned communities in and around Orlando rely on CDDs.

A CDD has a board of supervisors. Early on, the developer usually controls the board. Over time, as homes sell, control transitions to residents. Bonds have a set term. When the bond debt is paid off, the debt portion of your assessment can go down or end, although a maintenance portion may continue if the district still handles upkeep.

Where CDD fees show up

CDD charges typically appear on your annual Orange County property tax bill as a non-ad valorem assessment. This is a separate line from ad valorem property taxes. On local notices from the Orange County Tax Collector tax bill and the Orange County Property Appraiser parcel search, you will see these assessments itemized apart from county and municipal millage.

Most districts collect the assessment through the county tax bill once a year. Some CDDs may allow direct payment to the district or offer an alternative payment plan. Always check the specific district’s practice before you assume how it will be billed.

CDD assessments are liens on the property. If unpaid, they can trigger collection actions that may include foreclosure under applicable law. Because the assessment is part of the public record, it will show up in tax and title searches.

At closing, any unpaid CDD amounts are usually identified and prorated like other assessments. In early phases, a developer may advance or pay certain CDD charges on unsold lots. Your closing disclosure should show related credits and debits so you can see what applies to your purchase.

CDD fees vs. HOA dues

It helps to separate what each fee covers:

• CDD assessments primarily repay long-term bonds that financed infrastructure. A portion may also cover operations and maintenance if the district maintains roads, lighting, stormwater, or amenities.
• HOA dues fund day-to-day management and upkeep of HOA-owned common areas and amenities. The HOA is a separate legal entity from the CDD.

Many Orlando communities have both a CDD assessment and HOA dues. When you compare neighborhoods, list them separately so you can see the full picture.

Estimate your monthly cost

You can convert the annual CDD number on the tax bill into a monthly estimate. Simply divide by 12.

• Example: If your tax bill shows a CDD assessment of $1,800 per year, the monthly equivalent is $1,800 ÷ 12 = $150 per month.

That annual amount is the official figure for the current tax year. Future assessments can change if the district adjusts its budget, retires bonds, or adopts special assessments.

Lenders treat recurring charges like property taxes, CDD assessments, and HOA dues as part of your housing expense. Many lenders escrow property taxes and related assessments, though requirements can vary by loan program. For a quick primer on how escrow works, see the CFPB overview of escrow accounts. Always ask your lender whether they require escrow for your CDD assessment.

Due diligence steps in Orlando

Before you make an offer, follow this checklist so you know the exact cost for your specific parcel:

1. Look up the property on the Orange County Property Appraiser parcel search to identify non-ad valorem assessments. Cross-check the billed amount on the Orange County Tax Collector tax bill.
2. Ask the seller or listing agent for disclosures that show recurring assessments. Request any estoppel letters or payoff statements related to the CDD.
3. Request district documents. The latest annual budget, assessment roll, engineer’s report, and any bond amortization schedules explain how the assessment is allocated and whether it is mostly debt service or maintenance.
4. Have your title company confirm any liens or special assessments connected to the CDD.
5. Confirm with your lender whether the annual CDD assessment must be escrowed and how it figures into your debt-to-income calculation.
6. If you need language support, ask for Spanish materials or assistance. Many local agencies offer multilingual help, and your agent can request it.

You can also explore governance and reporting through the state’s Florida Special District Accountability Program for general transparency requirements and district information.

Smart questions to ask

Use these questions with sellers, developers, and agents as you evaluate a property subject to a CDD.

• Is the property subject to a CDD, and what is the exact annual assessment for this parcel this tax year?
• Is the CDD assessment billed on the county tax bill or directly by the district?
• Does the assessment include operations and maintenance, or is it solely bond repayment?
• Are any special assessments planned or new bonds under consideration?
• Are CDD payments currently being advanced by the developer on unsold lots?
• When will control of the CDD board transition to residents?
• How will CDD assessments be prorated at closing for my purchase?
• Will my lender require an escrow for the CDD assessment?

Spanish versions you can use in conversations or emails:

• ¿La propiedad está sujeta a una CDD? ¿Cuál es el cargo anual exacto de la CDD para este predio en este año fiscal?
• ¿El cargo de la CDD se factura a través del recibo de impuestos del condado o directamente por el distrito?
• ¿El cargo incluye operación y mantenimiento o sólo el pago de bonos?
• ¿Hay evaluaciones especiales planeadas o una emisión de bonos próxima?
• ¿El desarrollador está pagando actualmente los cargos de la CDD por lotes no vendidos?
• ¿Cuándo pasará el control de la CDD a los residentes?
• ¿Cómo se prorratean los cargos de la CDD en el cierre?
• ¿El prestamista requerirá una cuenta de depósito en garantía (escrow) para la CDD?

Compare neighborhoods fairly

When you compare a CDD community to a non-CDD neighborhood, use parcel-specific numbers. One district might assess only a few hundred dollars per year while another could be several thousand. The differences reflect the scale of infrastructure, bond terms, home type, and whether maintenance is included.

For a clean comparison, create a total monthly estimate for each property that includes:

• Mortgage principal and interest
• Property taxes (annual total ÷ 12)
• Homeowners insurance (annual premium ÷ 12)
• HOA dues (if any)
• CDD monthly equivalent (annual assessment ÷ 12)

Also note potential changes. If bonds are nearing payoff, you may see future reductions. If a district adopts new levies or special assessments, costs can increase. Your agent can help you read the CDD budget and ask the right follow-up questions.

What happens over time

If your CDD assessment is mostly debt service, it can decline or end once bonds are retired. Districts that handle ongoing maintenance may continue to levy a smaller operations and maintenance assessment. Check the district’s budget and the bond amortization schedule for timelines.

Get local guidance

Understanding CDD fees is key to making a smart purchase in Orlando. With the right due diligence, you can estimate your true monthly cost and choose the community that fits your life and budget. If you want bilingual, high-touch guidance as you compare neighborhoods and verify parcel-specific assessments, reach out to Millan Astray Realty. We are happy to walk you through the numbers and the documents so you can buy with confidence.

FAQs

Are CDD fees mandatory for Orlando homes inside a district?

• Yes. If a property lies within a CDD, the annual assessment is a recorded, mandatory charge tied to the property.

Can you appeal a CDD assessment in Orange County?

• Procedures vary by district. Contact the CDD to ask about protest options and timelines based on its adopted procedures and applicable law.

Do CDD fees increase my property tax rate in Orlando?

• CDD assessments are non-ad valorem and separate from ad valorem property taxes. They appear as a distinct line on the county tax bill.

Can unpaid CDD assessments lead to foreclosure in Florida?

• Yes. Unpaid CDD assessments are enforceable liens and can lead to collection actions, including foreclosure in some cases.

What happens to CDD fees when the bonds are paid off?

• If the assessment is primarily debt service, amounts can be reduced or eliminated when bonds are retired. Maintenance assessments may continue if the district still operates.