If you are shopping for a newer home around Jacksonville, especially in the large master-planned communities in St. Johns, Clay, Nassau and Duval counties, you will run into three letters that surprise a lot of buyers: CDD.

Buyers moving here from out of state are often caught off guard, because CDDs are much less common in many other states. Here is what a CDD is, how it shows up in your payment, and how to plan for it.

What Is a CDD?

A Community Development District is a special local government district created under Florida law. It pays for a community’s infrastructure, such as roads, water and sewer lines, drainage, and sometimes amenities like pools and trails. Developers use CDD bonds to build that infrastructure up front, and homeowners in the district repay the bonds over time through yearly assessments.

The Two Parts of a CDD Assessment

• Operations and maintenance (O&M). An ongoing yearly charge to maintain the district’s infrastructure and amenities. It does not go away.
• Debt service (the bond). Your share of repaying the bonds used to build the community. It runs for a set number of years, often decades, and in some districts it can be paid off early.

The amount depends on the community, the lot and the bond. It can range from a few hundred dollars to several thousand dollars a year. Two homes on the same street can carry different amounts.

How a CDD Affects Your Mortgage

CDD assessments are usually billed on your annual property tax bill as a non-ad valorem assessment. If you have an escrow account, the amount is typically folded into your monthly escrow payment along with taxes and insurance.

Because lenders count it as part of your housing payment, a CDD affects your debt-to-income ratio, which affects how much home you qualify for. A $2,400 yearly CDD adds about $200 a month to your payment. (That figure is an example only.) On a tight budget, that can be the difference between qualifying and not.

Questions to Ask Before You Make an Offer

• What is the total yearly CDD assessment for this specific property?
• How much is O&M, and how much is debt service?
• How many years are left on the bond, and can it be paid off early?
• Is the CDD shown on the current tax bill? Check the county tax collector’s site.
• Is there also an HOA fee? CDD and HOA are separate charges.

Florida law requires CDD disclosure language in sales contracts, but read it closely. Have your agent pull the actual numbers for that address.

Plan Your Real Monthly Payment

When I pre-approve a buyer looking at CDD communities, I build the CDD into the payment from the start, so there are no surprises at closing. Any payment figures I provide are estimates based on the information provided. Rates and terms are subject to change.

Moving to Jacksonville?

CDDs are one of the local cost surprises out-of-state buyers run into. Start with my guide to buying a home in Jacksonville from out of state, then see what a move to Jacksonville really costs, homeowners insurance in Jacksonville and the Florida homestead exemption.

Available for qualified borrowers. Program guidelines apply. All loans are subject to credit approval. Any figures are examples or estimates based on the information provided. This is general information, not tax or legal advice.

Nathan Young is the founder and president of North Star Mortgage Network, Inc., an independent mortgage brokerage in Jacksonville, serving Florida since April 2000, and the 2025 NAMB Mortgage Broker of the Year. Call or text 904-880-6741. NMLS #325206 | Company NMLS #356789. Equal Housing Opportunity.