Selling a House in a CDD in Florida

Many newer Central Florida communities are inside a Community Development District, or CDD, and the assessment that comes with it is one of the more commonly misunderstood line items on a property tax bill. Here is generally what a CDD is, why the charge exists, and what Florida law says about disclosing it when a house is sold.

What a CDD actually is

A Community Development District is a special-purpose unit of local government, created under Florida Statute Chapter 190, specifically to finance, construct, and maintain infrastructure within a defined development, things like roads, drainage systems, water and sewer infrastructure, and shared amenities. A CDD has the legal authority to levy taxes and assessments on the properties within its boundaries to pay for that infrastructure, both the debt service on bonds issued to build it and the ongoing cost of operating and maintaining it.

Why it shows up on the tax bill

Because a CDD is a unit of local government, not a private organization, its assessments are typically collected together with county property taxes rather than billed separately, which is why a CDD charge usually appears as its own line item directly on the property tax bill. This is different from an HOA due, which is billed separately by the association itself. The CDD line generally reflects two components: a portion paying down bonds issued to build the district's infrastructure, and a portion covering the district's ongoing operations and maintenance.

CDD versus HOA: two different things

A CDD and an HOA are not the same, even though many Florida communities have both. A CDD is a governmental entity created under Chapter 190, with the legal authority to tax and assess property within its boundaries, governed by its own board. An HOA is a private association, governed by its recorded declaration and bylaws, funded through member dues rather than a government levy. A property can be subject to a CDD assessment, HOA dues, both, or neither, and each has its own separate governing documents, obligations, and payment history to check.

What Florida law requires disclosing, and to whom

Under Florida Statute 190.048, the contract for the initial sale of a parcel or residential unit within a CDD must include a specific, boldfaced disclosure statement, in type larger than the rest of the contract, stating that the district may impose taxes or assessments to pay for its infrastructure and services, separate from county and other local taxes. Separately, Florida Statute 190.009 requires the district itself to take affirmative steps to make information about its public financing available to residents and prospective residents, and to file disclosure documents in the county's property records. What this specifically means for a later resale, rather than that first sale from a developer, and exactly what needs to be disclosed and by whom, depends on the specific transaction, and is a question for the title company or a Florida real estate attorney handling the sale, not something to generalize from this article.

Where a sale fits

Being in a CDD does not prevent a sale. A buyer, especially one comparing properties, will typically want to understand the CDD assessment amount, whether it's trending toward payoff or has years remaining, and how it compares to a similar property outside a district. That information is available through the district itself and typically confirmed during the closing process. A cash, as-is sale does not change any of this: the CDD's status and assessment history are a property fact that still needs to be identified and communicated regardless of who the buyer is.

Frequently asked questions

What is a CDD in Florida?

A Community Development District, or CDD, is a special local government unit created under Florida Statute Chapter 190 to finance, build, and maintain infrastructure like roads, drainage, and amenities within a specific development. A CDD can levy taxes and assessments on properties within its boundaries to pay for that infrastructure, separate from county property taxes and separate from an HOA.

Why do I see a CDD charge on my property tax bill?

If a property is within a CDD's boundaries, the district's assessments are typically collected along with county property taxes, which is why they usually appear as a line item on the same tax bill rather than as a separate invoice. These assessments generally cover both the district's debt service on infrastructure bonds and its ongoing operations and maintenance costs.

Is a CDD the same thing as an HOA?

No. A CDD is a unit of local government created under Florida Statute Chapter 190, with the authority to levy taxes and assessments, while an HOA is a private association governed by its own recorded documents. Many Florida communities have both a CDD, funding infrastructure, and a separate HOA, funding things like landscaping and amenity operations, and the two involve different governing bodies, different legal frameworks, and different types of charges.

Does Florida law require CDD disclosure when a house is sold?

Yes, with an important distinction. Florida Statute 190.048 requires a specific, boldfaced disclosure statement about the CDD's ability to levy taxes and assessments in the contract for the initial sale of a property within the district. Whether and how that same disclosure requirement, or a similar one, applies to a later resale of the same property can depend on the specific transaction, and is a question for the title company or a Florida real estate attorney handling the sale, not something to assume from general information.

Selling a home in a Florida CDD community and have questions about the assessment? Call OfferLink at 407-584-9111. We buy as-is across Central Florida, including Orange County, Osceola County, and Lake County. This article is general information, not legal advice. The specific CDD, its assessment schedule, and any resale disclosure requirements should be confirmed with the district and a Florida real estate attorney.