What Is a CDD Fee in Florida Real Estate?

Are you comparing master-planned communities in Naples and wondering why some listings include a “CDD fee” on top of HOA dues? You are not alone. Understanding this line item can help you budget accurately and avoid surprises after closing. In this guide, you will learn what a Community Development District is, how the fees work in Florida, how they differ from HOA dues, and how to evaluate total monthly costs in Isles of Collier Preserve. Let’s dive in.

What a CDD is in Florida

A Community Development District, or CDD, is a special local government created to plan, finance, build, and maintain the public infrastructure for a new community. Examples include roads, stormwater systems, water management, street lights, entry features, and certain parks or recreational areas. CDDs typically issue bonds to pay for these improvements up front, and property owners within the district repay the bond over time through assessments.

Florida Statutes, Chapter 190 governs how CDDs are formed and operated. CDDs are public entities with boards that may be developer-appointed early on and later transition to resident control. The district’s boundaries usually match the community’s recorded plats and legal descriptions.

For you as a buyer, the key takeaway is simple. A CDD funds community infrastructure and spreads the cost over many years. It is separate from your HOA and often appears on your annual property tax bill.

How CDD fees show up on bills

CDD assessments generally have two parts:

Debt service (bond assessments). This repays the bonds used to build infrastructure. It typically follows a set amortization schedule and is collected once a year as a non-ad valorem assessment on your county tax bill.
Operations and Maintenance (O&M). This covers recurring costs like landscaping of CDD areas, stormwater system upkeep, insurance, utilities, staffing, routine repairs, and reserves. The CDD adopts an O&M budget each year, so this amount can change annually.

In many cases, your lender will escrow these assessments with your mortgage, similar to property taxes. In other cases, you may pay the assessments directly when the tax bill is due. Confirm the billing and escrow method with your lender and the CDD before you finalize your numbers.

How long CDD fees last

The debt service portion runs for the life of the bonds, often 20 to 30 years or more. The O&M portion is ongoing and can rise or fall with the annual CDD budget.

In early phases of a new community, per-home debt service can be higher because costs are spread over fewer owners. As more homes are added to the district’s assessment roll, the per-unit share of a fixed bond can decrease, subject to how the bond documents allocate assessments.

Some districts also allow you to prepay the remaining special assessment principal. If you are considering a payoff, ask the district manager for an official payoff quote and the prepayment rules from the bond documents.

CDD fees vs HOA dues

Knowing how a CDD differs from an HOA will help you compare neighborhoods the right way.

Legal nature. A CDD is a public entity, and its assessments are non-ad valorem and tied to the property. An HOA is a private membership association governed by CC&Rs, and dues are contractual.
Purpose. A CDD funds public-type infrastructure and sometimes the operation of shared facilities. An HOA funds private amenities, community standards, management, and reserves for shorter- to mid-term items.
How they change. CDD debt service follows a bond schedule; O&M is set annually by the CDD. HOA dues are set by the HOA board and may change or include special assessments for unexpected needs.
Where they show. CDD assessments commonly appear as a separate line on the county tax bill. HOA dues are billed by the management company, often monthly or quarterly.
Impact on financing and resale. Lenders and buyers treat CDD assessments like a recurring housing cost. Your lender may count them when qualifying you and may escrow them. HOA dues are also considered recurring costs, but they operate under private association rules.

Isles of Collier Preserve specifics

If you are focused on Isles of Collier Preserve, you can verify the CDD and your exact assessment with publicly available records and the community’s disclosures. Here is where to look:

Collier County Property Appraiser and Tax Collector. Pull the most recent property tax bill for the specific parcel. Look for the non-ad valorem section where a CDD typically appears as its own line item.
Recorded plats and community documents. The Collier County Clerk’s Official Records will show plats, CC&Rs, and the formation documents that define the CDD’s boundaries and powers.
CDD public records. Search for the district that serves Isles of Collier Preserve to find adopted budgets, board meeting minutes, annual audits, and bond information. Many districts publish these online or through the county.
Developer disclosures. If you are buying a newer or still-developing phase, review the public offering statement and buyer packet. These materials usually disclose any one-time capital contributions at closing and estimated annual assessments.

Local patterns in Collier County can influence the numbers you see. Early-phase homes may carry higher per-home shares of fixed bond debt. Some developers fund portions of O&M during the ramp-up period. Also confirm whether recreational amenities are CDD-maintained or HOA-maintained, because that changes which budget drives the cost.

Compare total monthly cost the right way

To compare Isles of Collier Preserve with another Naples community, focus on total monthly costs rather than just HOA dues.

Collect the right documents. Ask for the most recent CDD adopted budget, bond amortization schedule or debt service table, recent CDD board minutes, the latest tax bill showing the CDD line item, the HOA budget and reserves, and any developer disclosures for new homes.
Monthly-ize the CDD assessment. Add the annual debt service and annual O&M for the specific property. Divide by 12 to get a monthly equivalent.
Build a full monthly picture. Add mortgage principal and interest, property taxes, homeowner’s insurance, HOA dues, the monthly CDD equivalent, and any key utilities you want to compare.
Add a cushion for O&M. Include a 5 to 10 percent contingency for potential O&M changes when you are calculating forward-looking costs.
Compare communities apples-to-apples. Run the same calculation for each community you are considering.

Example comparison (hypothetical only): If the annual CDD assessment totals $2,400, the monthly equivalent is $200. If HOA dues are $150 per month and your tax portion is $350 per month, your non-mortgage monthly carry is $700. Repeat that math for each property to get a clear comparison.

Lender and escrow considerations

Most lenders review CDD assessments when qualifying you. Some will escrow the payments along with property taxes, which can make your monthly payment more predictable. Others will not, which means you will pay the non-ad valorem assessment in a lump sum when the tax bill is due.

Before you lock a loan, ask your lender these questions:

Will the CDD assessment be escrowed with my taxes and insurance?
How does the underwriter treat non-ad valorem assessments in my debt-to-income calculation?
Do you require any documentation from the CDD or the tax bill for approval?

Smart questions before you write an offer

Going in prepared can save you money and stress. Confirm these items early in your due diligence:

Is the CDD still developer-controlled or resident-controlled?
Are there planned O&M increases or new bond issuances under discussion?
Does the seller or developer plan to prepay any portion of the CDD, or is there a one-time capital contribution at closing?
Are there any special or litigation-related assessments being considered?
What are the prepayment terms if I want to pay down the assessment?

Payoff and prepayment basics

Many districts allow you to pay off the remaining special assessment principal tied to your lot. If you are considering this, request an official payoff letter from the CDD’s district manager. The letter will detail the remaining principal, any applicable interest or administrative fees, and instructions for remitting payment.

Paying off the debt service can reduce your annual CDD charge to just the O&M portion. Whether that strategy makes sense depends on your time horizon and the district’s terms.

Key takeaways for Isles of Collier Preserve

A CDD is a public entity that funds community infrastructure under Florida Statutes, Chapter 190. Its assessments are separate from HOA dues.
Expect two CDD parts: predictable bond repayment and variable annual O&M. Both are commonly collected on your county tax bill as non-ad valorem assessments.
To compare neighborhoods, convert the annual CDD to a monthly number, add HOA dues, property taxes, and insurance, then compare total monthly cost across options.
Verify the exact figures for the specific property using the latest tax bill, the CDD’s adopted budget, bond schedules, and recent meeting minutes.

Ready to explore Isles of Collier Preserve?

If you want a clear, apples-to-apples view of total monthly costs in Isles of Collier Preserve, I can help you gather the right documents and run the numbers. For private guidance and on-the-ground insight into Naples communities, connect with Holly Fagan. Let’s make your next move confident and smooth.

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