You found a great home in Davenport and then spotted a “CDD fee” on the listing or tax bill. It is normal to wonder what that means for your budget. You want a clear, local explanation that helps you compare neighborhoods and plan your monthly costs. In this guide, you will learn what a CDD is, how it shows up on Polk County tax bills, how it differs from an HOA, and how to estimate the impact on your payment before you make an offer. Let’s dive in.
What a CDD is
A Community Development District, or CDD, is a special-purpose local government created under Florida law to plan, finance, build, and maintain community infrastructure. Typical items include roads, water and sewer, stormwater systems, parks, and amenity centers. CDDs are common in large, master-planned communities.
To fund that work, a CDD often issues municipal bonds. The debt is repaid through mandatory assessments placed on properties inside the district. These assessments are liens that stay with the property when it sells.
A CDD is governed by a board of supervisors. Early on, the developer usually controls the board. Over time, resident owners can be elected to serve. Because a CDD is a governmental entity, it has powers that an HOA does not, including levying assessments and adopting public budgets.
Where CDD fees appear in Polk County
Most CDD assessments are collected as non-ad valorem assessments and appear on your annual Polk County tax bill. Some districts bill owners directly, such as quarterly invoices, depending on how the district collects.
On the tax bill, you will see a separate line item for special assessments. Labels vary, but common wording includes “Community Development District,” “Non-Ad Valorem Assessment,” or “Special Assessment” with the district name or bond series noted.
Assessment amounts reflect the current year’s levy. Debt service for bonds is usually fixed during the bond term, while operations and maintenance, or O&M, can change each year based on the district’s adopted budget. If a new bond series is recorded, amounts can increase in later years.
Davenport and US-27 context
Many Davenport communities along the US-27 corridor use CDDs to finance infrastructure and amenities. Because bond sizes and budgets differ by development, check each property rather than relying on general averages.
How to check a Davenport parcel
Use these quick steps before you write an offer:
- Polk County Property Appraiser parcel page: Look up the address or parcel number and review the parcel details for any “special district” or CDD references.
- Polk County annual tax bill: Review the current notice for separate CDD or “Non-Ad Valorem Assessment” line items and amounts.
- If wording or totals are unclear: Call the Polk County Tax Collector or Property Appraiser offices and ask them to help identify special assessments on the parcel.
Sample wording you might see on a Polk County tax bill includes “Community Development District - [District Name]” or “Special Assessment - [CDD Name or Series].” The exact label can vary, so focus on the district name and amount.
CDD vs HOA differences
It helps to view them side by side in plain terms:
Authority and legal status
- CDD: A public unit of local government with statutory powers to levy assessments and issue bonds.
- HOA: A private association created by covenants. It enforces rules and collects dues but does not have taxing power.
What the fees fund
- CDD assessments: Infrastructure debt service and district operations, including maintenance of district-owned improvements and some common areas.
- HOA dues: Private common-area upkeep, amenity operations, reserve funds, covenant enforcement, and neighborhood services defined by the covenants.
Mandatory nature and liens
- Both are mandatory for included properties. CDD assessments are statutory liens and are often collected on the tax bill. HOA dues are private obligations enforced by the association.
Governance and changes
- CDD: A public board adopts budgets and sets assessments through a public process under Florida law.
- HOA: A private board operates under recorded covenants and bylaws. Changes follow the association’s governing documents.
Impact on affordability
- Both affect your recurring carrying costs. Lenders include mandatory CDD and HOA amounts when they qualify you for a loan.
CDD impact on your monthly budget
When you plan your total monthly payment, include these items:
- Mortgage principal and interest
- Property taxes
- Homeowners insurance
- HOA dues, if any
- CDD assessments for capital and O&M
- Utilities and routine maintenance
To estimate the CDD’s effect, first find the annual amount from the tax bill, district disclosure, or a current invoice. If it is on the tax bill, divide the annual total by 12 to get the monthly impact. If it is billed quarterly or semiannually, convert that to a monthly number for easy budgeting.
Here is a simple illustration. If a parcel shows a total CDD assessment of 1,800 dollars per year, your monthly equivalent is 150 dollars. Add that to your projected mortgage payment, taxes, insurance, and HOA dues to see your full carrying cost.
Underwriters typically include recurring assessments in qualification and may escrow the CDD amount with your taxes and insurance when it is collected on the tax bill. Ask your loan officer how the CDD will be handled in your loan scenario.
Verify a CDD before you make an offer
Do a quick document sweep so you can compare neighborhoods with confidence.
Immediate sources to check
- Polk County Property Appraiser parcel report to confirm any “special district” entries.
- Polk County Tax Collector annual tax bill to see current amounts and labels.
- Listing and agent disclosures for stated CDD and HOA figures. Always verify independently.
Documents to request
- Current year tax bill showing CDD line items.
- The district’s current assessment schedule or an owner invoice if it uses direct billing.
- Estoppel or payoff letter from the CDD, if applicable, to confirm amounts and any prepayment options.
- The district’s adopted budget to understand potential O&M changes.
- Recorded plats, master declarations, or bond documents that reference district obligations.
Who to contact and what to ask
- District manager or clerk for the current annual assessment by parcel and how it is billed.
- Ask whether the parcel is subject to capital assessments, O&M, or both.
- Ask about outstanding bonds, the expected duration of debt service, and any planned O&M increases or capital projects.
- Ask whether there are prepayment options or restrictions on capital assessments.
At closing
- Confirm how the current year’s CDD assessments will be prorated between buyer and seller on the settlement statements.
- Verify that the title commitment discloses any CDD liens or pending assessments.
Quick Davenport buyer checklist
- Check the Polk County Property Appraiser parcel page for special district entries.
- Pull the current Polk County tax bill and identify any CDD line items.
- Ask the listing agent and seller for the CDD disclosure, the latest assessment statement, and district contact details.
- Request an estoppel or payoff letter from the CDD through your title company before closing.
- Convert the annual CDD into a monthly figure and include it in your budget.
- Talk to your lender about how the CDD will be treated in qualification and escrow.
Pro tips to avoid surprises
- Use the actual parcel’s assessment rather than a “typical” number. Amounts vary widely by bond size, term, and amenities.
- Expect O&M assessments to adjust year to year. Review the district’s adopted budget to see trends.
- If a new bond series has been recorded, plan for potential increases in later tax years.
- Ask early about prepayment options. If available, they must follow the district’s procedures and are handled through closing.
Ready to explore Davenport with confidence?
Understanding CDDs helps you compare true monthly costs across neighborhoods and choose the right fit for your budget and lifestyle. If you want a local, hands-on partner to help you read tax bills, verify district details, and negotiate with clarity, connect with Cheryl Bossarte. We are here to make your next Polk County move simpler and more rewarding.
FAQs
What is a CDD in Florida and why does it exist?
- A CDD is a local government district created to finance and maintain community infrastructure through mandatory assessments on properties in the district.
How will a CDD appear on a Polk County tax bill?
- You will typically see a separate non-ad valorem line item labeled “Community Development District,” “Special Assessment,” or similar with the district name and amount.
How is a CDD different from an HOA in Davenport?
- A CDD is a public entity with statutory powers and assessments, while an HOA is a private association funded by dues for covenant enforcement and private common-area upkeep.
Will CDD assessments go away after bonds are paid off?
- Capital assessment portions tied to bond repayment usually end when bonds are satisfied, while O&M assessments can continue for ongoing maintenance.
Can I negotiate CDD amounts with a seller?
- You can negotiate price or request a seller prepayment at closing if allowed, but statutory CDD assessments themselves are not optional and follow district procedures.
Are CDD assessments tax-deductible for homeowners?
- Some portions may not be deductible as real property taxes. For specific tax treatment, consult a qualified tax professional.
Do lenders treat CDDs differently than HOAs when qualifying me?
- Lenders include mandatory CDD and HOA amounts in your housing expense. If the CDD is on the tax bill, it is sometimes escrowed with taxes and insurance.
How can I confirm if a Davenport home is in a CDD?
- Check the Polk County Property Appraiser parcel page, review the current tax bill for special assessments, and contact the district manager for parcel-specific details.
