Seeing “CDD fee” on a Polk County listing and not sure what it means? You are not alone. Community Development District assessments are common across Polk’s newer neighborhoods, and they can change your monthly payment more than you expect. In this guide, you will learn what CDDs fund, where to find the exact dollar amounts, how they differ from HOA dues, and how to estimate your budget in areas like Winter Haven and Davenport. Let’s dive in.
What a CDD is and why it matters
A Community Development District, or CDD, is a special local government created under Florida law to plan, finance, build, and maintain community infrastructure for a development. Think roads, stormwater lakes, entry features, lighting, and recreational spaces. CDDs issue bonds to build the improvements, then collect assessments to repay those bonds and to cover yearly operations and maintenance.
You should care because CDD assessments are recurring charges tied to the property. Most Polk County owners see them on the annual tax bill as non-ad valorem assessments. That means they are not ad valorem property taxes based on value, but they are collected by the county and enforceable like a tax.
CDDs are governmental in nature, with a board of supervisors. Early on, the developer often controls the board. Over time, residents can vote for representatives. This is different from a private homeowners association.
How CDD fees work
Bond or debt service
Many districts finance community infrastructure by issuing bonds. Those bonds are repaid through annual assessments on each parcel in the district. You may hear this called “bond assessment,” “special assessment,” or “CDD debt service.” Debt service amounts follow the bond repayment schedule, though they can change if the district refunds bonds or allows prepayments under the bond documents.
Operations and maintenance
CDDs also levy yearly operations and maintenance assessments, often called O&M. These cover the annual budget for landscaping, lake care, lighting, insurance, and district management. O&M is adopted each year in a public budget process, so it can change from year to year.
How assessments are collected
Most Polk County CDD assessments appear on your county tax bill as non-ad valorem lines. It is common to see two separate lines, one for debt service and one for O&M. Some districts may levy one-time or special assessments for specific projects or reserves.
Timing and variability
- O&M is set during the annual budget and can go up or down.
- Debt service follows the bond schedule, though it can change if bonds are prepaid, refunded, or if new bonds are issued.
- If the district adopts new projects or needs additional reserves, assessments can increase.
Prepayment and buyouts
In some districts, owners can prepay the remaining bond balance. The payoff is not always simple, since it follows bond covenants and requires figures from the CDD manager or trustee. If you want to prepay, request payoff instructions early and confirm any premiums or fees that apply.
CDD vs HOA in Polk County
Legal status
- CDD: A governmental entity created by state statute with the power to issue bonds and levy assessments.
- HOA: A private, membership-based nonprofit that enforces covenants and collects dues.
What the money covers
- CDD: Capital infrastructure such as roads, stormwater systems, streetlights, public parks or recreation facilities, and maintenance of those improvements.
- HOA: Community rule enforcement, upkeep of privately owned amenities like a clubhouse or pool, common-area repairs, and reserves.
How you pay
- CDD: Typically appears on your Polk County tax bill as non-ad valorem assessments and is collected by the county.
- HOA: Dues are billed by the association or its management company, often monthly or quarterly.
Governance and control
- CDD: Board is initially developer-controlled, then transitions to resident-elected supervisors, with public meetings and budgets.
- HOA: Board is elected by members, operates as a private corporation under state HOA statutes and community covenants.
Impact on your budget
Both are ongoing costs to plan for. CDD debt service can be more rigid due to the bond schedule, while HOA dues are set by your association. Many Polk County communities have both.
Where to find CDD fees for a property
On the MLS or listing
Many Florida listings include a field for “CDD” or “Estimated CDD.” Agents often convert annual assessments into a monthly estimate by dividing by 12. Treat listing numbers as a starting point and verify the exact annual amounts.
On the Polk County tax bill and records
The most reliable source is the county tax bill. Look for non-ad valorem assessment lines that list the district and amounts. You can also search the property record for special assessments linked to the parcel.
In closing documents and disclosures
Seller disclosures, title company payoff letters, and the closing statement should reflect recorded assessments and any amounts due at closing. Review these carefully and ask your closing agent to confirm whether assessments are prorated.
From the CDD itself
CDDs publish adopted budgets, assessment rolls, audited financials, and meeting notices. These are public records. The CDD manager or the district’s website typically provides the most current budgets and rolls. Bond documents, such as indentures and official statements, outline how assessments are calculated and how prepayment works.
Practical steps to verify exact dollars
- Search the Polk County Property Appraiser for the parcel and check for special assessments or CDD lines.
- Review the Polk County Tax Collector records for current non-ad valorem assessments and due dates.
- Ask the listing agent for the latest exact annual assessments for both debt service and O&M, plus a copy of the most recent tax bill.
- Request the CDD’s adopted budget and assessment roll from the district’s manager or website.
- Have your title or closing agent confirm whether any installments are payable or prorated at closing and whether any unpaid amounts would be a lien.
Polk County examples to expect
CDDs are common in fast-growing corridors along I-4 and US 27, including Winter Haven and Davenport. Communities often use CDDs to fund entry features, stormwater lakes, streetlights, sidewalks, and recreation centers.
- Hypothetical Winter Haven scenario: An established neighborhood has paid down most of its bond debt. The district now levies only an annual O&M assessment for lake and common-area maintenance. The amount may be lower and may change each year.
- Hypothetical Davenport scenario: A newer master-planned community uses a CDD to finance roads, lakes, and a clubhouse. Owners see two lines on the tax bill, one for bond debt and one for O&M, each billed annually.
For exact figures, always confirm with Polk County records and the district’s adopted budget and assessment roll.
Estimate your monthly budget with CDDs
Before you run numbers, collect these annual amounts:
- Annual CDD debt-service assessment: _______
- Annual CDD O&M assessment: _______
- Annual HOA dues, if any: _______
- Annual ad valorem property tax: _______
- Annual homeowners insurance: _______
- Annual mortgage principal and interest: _______
- Utilities, if you track them annually: _______
Then do the math:
- Total annual housing cost = sum of all annual inputs.
- Total monthly housing cost = total annual cost divided by 12.
Hypothetical example, just to show the formula:
- CDD debt: $2,400
- CDD O&M: $600
- HOA: $1,200
- Property tax: $3,600
- Insurance: $1,200
- Mortgage P&I: $12,000
Total annual = $21,000, so the monthly estimate is $1,750. Use your verified figures for a real estimate.
Practical tips:
- Confirm whether assessments are collected on the tax bill and whether they are due in one annual payment or installments.
- If a seller agrees to cover a portion at closing, confirm proration with your title company.
- Review the CDD’s budget for any planned increases or one-time special assessments.
Due diligence checklist for buyers
Before you write an offer
- Confirm whether the home is in a CDD and request the latest annual amounts for debt service and O&M.
- Ask for a copy of the most recent property tax bill.
- Request the CDD’s adopted budget and assessment roll.
- Verify HOA dues, covenants, and any pending special HOA assessments.
- Review plats and community documents to confirm the parcel is on the CDD assessment roll.
During contract and escrow
- Ask your title or closing agent to verify all assessments and whether any amounts are due at closing.
- Confirm whether any unpaid assessments could be a lien that must be cleared.
- If you plan to prepay bonds, request payoff instructions early. Prepayment may involve steps with the trustee and CDD manager.
After you close
- Expect CDD assessments to appear on future Polk County tax bills. Note due dates and payment options.
- Monitor CDD meeting notices to track budget changes that could affect your assessments.
Smart negotiation and planning
- Compare homes with and without CDD assessments so you understand the trade-offs in amenities and total monthly cost.
- If the CDD burden is high relative to similar homes, consider asking for seller concessions to offset your first year.
- Include the CDD assessment in your lender pre-qualification. Many lenders count recurring assessments in monthly obligations.
- If you are payment sensitive, prioritize communities with lower O&M or where bond debt has been paid down. Verify with current records.
Next steps
CDD fees do not have to be confusing. When you know where to look and how to verify the numbers, you can budget with confidence and shop smart across Winter Haven, Davenport, and the rest of Polk County. If you want help pulling exact assessments, reading tax bills, or comparing neighborhoods, reach out to the local experts at Orlando A to Z. We will walk you through the numbers, line by line, so you can focus on finding the right home.
FAQs
What is a CDD fee on a Polk County tax bill?
- It is a non-ad valorem assessment that funds a Community Development District’s bond debt and operations for infrastructure like roads, lakes, lighting, and amenities.
How do CDD fees differ from HOA dues in Polk County?
- CDDs are governmental and bill via the tax bill, while HOAs are private associations that bill dues directly for covenant-based amenities and services.
Where can I verify a home’s exact CDD assessments?
- Check the Polk County tax bill and property records, request the CDD’s adopted budget and assessment roll, and ask the listing and title agents for current amounts.
Can I pay off CDD bond debt early on a Polk County home?
- Sometimes. Prepayment depends on bond documents. Contact the CDD manager or trustee for payoff instructions and confirm any premiums or fees.
Will CDD fees go down over time?
- Debt assessments end when bonds are fully repaid. O&M can continue and may change yearly based on the district’s budget and maintenance needs.
