What Are CDD Fees? The Real Story Behind Community Development Costs in Northeast Florida

What are CDD Fees, how do they work, and how should you compare them to “No CDD” neighborhoods in Northeast Florida?

Short Answer:
CDD fees help fund a community’s infrastructure and ongoing maintenance. Many buyers assume “No CDD” communities are cheaper — but often, the same costs simply show up as higher HOA fees. So it’s worth comparing the total annual cost before crossing a neighborhood off your list.

What a CDD Really Is (and Why They Exist in Florida)

If you’ve been house-hunting around Jacksonville, St. Johns, Nocatee, or eTown, you’ve probably seen the term CDD pop up a lot. A Community Development District is basically a local financing tool that helps a neighborhood build things like:

• Roads

• Utilities

• Drainage structures

• Parks and trails

• Pools and amenity centers

• Fitness facilities and clubhouses

Here’s the honest reason they exist:
Large-scale communities need huge amounts of upfront money, and CDDs allow developers to borrow that money instead of adding the cost straight into the home prices.

So instead of a house costing $30k–$50k more on day one, the homebuyer pays smaller yearly assessments.

Breaking Down the Two Parts of a CDD Fee

Every CDD assessment has two main pieces:

1. The Debt Portion (the “Bond”)

This is the loan used to build the community.
Key things to know:

• It’s a fixed amount.

• It lasts for a set term (usually 20–30 years).

• You may be able to pay it off early.

• Paying it off early doesn’t reduce your entire CDD—only the debt portion.

Then comes the second part…

2. The Operations & Maintenance Portion (O&M)

This is the annual cost to keep everything running:

• Landscaping

• Amenity staffing

• Pool maintenance

• Lighting

• Repairs

• Reserves for future replacements

You will always pay the O&M fee, even if the debt portion is gone.

That’s the part many homeowners don’t realize at first.

How CDD Fees Are Paid

In Florida, your CDD fee appears on your property tax bill as a non-ad valorem assessment.

That means:

• If your mortgage is escrowed, you’re paying it monthly.

• If you’ve paid off the bond, the debt disappears — but the O&M remains.

• Your mortgage payment does not go down just because the bond is paid off.

So paying off your bond early is a personal choice, not a cost-saving strategy.

Now Let’s Talk About “No CDD” Communities (This Part Matters)

Here’s the twist — and it’s something most buyers don’t hear upfront.

Some developers know buyers don’t love the idea of CDD fees. So instead of creating a CDD, they:

🔹 Skip the CDD structure entirely
🔹 Privatize the infrastructure costs
🔹 Roll everything into a higher HOA fee instead

Same roads - Same stormwater systems - Same amenities - Different label

A “No CDD” community doesn’t magically avoid the cost of development. The money just moves into a different bucket — usually a noticeably higher HOA fee.

So the myth that “No CDD = cheaper” simply isn’t always true.

Example (not tied to any specific community):

• Neighborhood A (with CDD)

  • CDD: $2,200/year (bond + O&M)

  • HOA: $400/year

  • Total: $2,600/year

• Neighborhood B (no CDD)

  • HOA: $200–$250/month

  • Total: $2,400–$3,000/year

Same cost - Sometimes more - Just packaged differently

Why You Shouldn’t Automatically Cross Off CDD Communities

Buyers often think:

“I don’t want a CDD. Too expensive.”

But here’s the truth:
You might be ruling out some of the most well-planned, amenity-rich neighborhoods in Jacksonville and St. Johns — and the total yearly cost might be almost identical to the “No CDD” neighborhood next door.

In fact, many communities with CDDs offer:

• Larger amenity centers

• Better long-term maintenance budgets

• Earlier completion of infrastructure

• Stronger reserve funding

That doesn’t mean CDD communities are “better.” It just means the cost is structured differently.

What You Should Compare Instead

Here’s the smart way to look at it:

1. Total Annual Cost (CDD + HOA vs. HOA-only)

This is the real number that affects your budget.

2. What You’re Getting for the Money

Amenities, upkeep, reserves, the overall feel of the neighborhood.

3. How Many Years Are Left on the Bond

A CDD with 5 years left looks different than one with 25 years.

4. The Community’s Financial Health

Reserve funding matters — not just price.

If you compare all four honestly, you’ll make a smarter decision and avoid surprises.

Final Takeaway

CDD fees aren’t extra charges — they’re simply a structured way to fund a community. And the “No CDD” communities? They still pass those same development and maintenance costs on to you, just through higher HOA fees instead.

Bottom line:

• Don’t eliminate a neighborhood just because it has a CDD.

• Compare the total annual cost and the lifestyle you’re getting in return.

Need Help Comparing CDD vs. Non-CDD Communities?

If you need help finding homes that have CDD fees — or homes that don’t — CrossView Realty is here to help. Fill out our Connect With Us form or call 904-503-0672. You can also email info@crossviewrealty.com anytime.

We’d love to walk through it with you.