Thinking about buying in Saint Johns and seeing “CDD” on a listing or tax bill? You are not alone. Community Development District fees can be confusing at first glance, especially if you are comparing homes across master-planned communities. The good news is you can understand how these fees work and how they affect your budget with a few clear steps. In this guide, you will learn what CDDs fund, how fees are billed, how lenders view them, and exactly where to verify the numbers for any Saint Johns address. Let’s dive in.
CDD basics for Saint Johns
What a CDD does
A Community Development District is a special-purpose local government created under Florida law to plan, finance, build, and maintain infrastructure and amenities for a defined area. That can include roads, stormwater systems, landscaping, parks, trails, and recreational facilities. Many master-planned communities in and around Saint Johns use a CDD to fund large capital projects up front.
Who runs the district
A CDD is overseen by a board of supervisors. Early on the board may be appointed by the developer. Over time, seats are filled by local elections. The board adopts budgets, levies assessments, and manages operations for the district.
Why fees matter to you
If a property sits inside a CDD, it will have district assessments. These assessments repay bonds used to build infrastructure and cover ongoing operations and maintenance. They are separate from county property taxes and from any HOA dues. Since they recur, CDD assessments are an important part of your total monthly housing cost.
How CDD fees work
Bond vs O&M assessments
CDD bills usually have two parts:
- Bond assessments repay bonds issued to fund infrastructure and amenities. These appear as annual special assessments tied to each parcel. They continue until the bonds mature or are prepaid according to the bond documents.
- Operations and Maintenance (O&M) assessments pay for annual costs like landscaping, amenity staffing, insurance, repairs, and utilities. O&M is ongoing and can change year to year through the district’s budgeting process.
How fees are collected
CDD assessments may show up as non-ad valorem line items on your St. Johns County tax bill, or the district may invoice you directly. If they are on the tax bill, you will see them listed separately from ad valorem property taxes. If they are billed directly, the district or its management company will send invoices based on the district’s adopted schedule.
How long fees last
Bond assessments often run for many years and can last decades until the bonds are retired. O&M assessments continue each year for as long as the district maintains facilities and services. Districts can also levy one-time special assessments in limited cases, such as to address emergencies or fund new capital projects if allowed by their governing documents.
What CDD fees may cost
Why amounts vary
There is no single typical CDD fee for Saint Johns. Amounts vary by community size, the bond debt per parcel, the number of parcels sharing the cost, and the scope of amenities. Smaller or older districts may have lower per-parcel costs. Newly built, amenity-rich communities can have larger assessments, especially while bond debt is still outstanding. Always verify the exact parcel’s assessment schedule rather than relying on averages.
What drives higher costs
Higher assessments usually reflect one or more of the following:
- Larger bond issuance per lot to build roads, utilities, and high-end amenities.
- Fewer parcels sharing the bond obligation.
- Extensive amenities that raise annual O&M needs.
- Newly issued or additional bonds for major improvements.
Check a property’s CDD status
Where to look in St. Johns County
You can verify whether a Saint Johns property is in a CDD and what it owes by checking local records and district sources:
- St. Johns County Property Appraiser records for parcel status and special assessments.
- St. Johns County Tax Collector for the current tax bill and any non-ad valorem line items.
- St. Johns County Clerk/Recorder or a title company for recorded district formation documents and bond instruments.
- The CDD’s website or district manager for adopted budgets, meeting minutes, assessment rolls, and bond schedules.
Documents to request
Ask for these items early in due diligence:
- The latest adopted annual budget for O&M.
- The current assessment roll or schedule that shows bond and O&M amounts for the parcel.
- Bond documents or the engineer’s report for capital costs and repayment structure.
- Recent meeting minutes for planned projects or special assessments.
- Details on how the assessment is collected, and who is responsible at closing.
Red flags to review
Pay close attention if you see:
- A newly created district with a large initial bond issuance.
- Meeting minutes that discuss pending special assessments or major new projects.
- Big annual jumps in O&M, budget shortfalls, or pattern of special assessments.
- Unclear prepayment terms or limits on early bond redemption.
Loans, closing, and taxes
How lenders view CDDs
Lenders treat recurring CDD assessments like other housing expenses when they calculate your debt-to-income ratio. They will ask for the annual amount and may divide it by 12 for your monthly budget. Share the adopted budget or assessment statement with your lender early so underwriting reflects the correct numbers.
Prorations at closing
In many Saint Johns purchases, the seller pays the portion of the current year’s assessment that accrues before closing, and you take responsibility after closing. Your settlement statement should show these prorations and any unpaid amounts. Confirm the collection method too, since a tax-bill collection follows the county cycle while direct billing may follow a different schedule.
Can you pay off the bonds
Some districts allow prepayment or early redemption of bond assessments based on the bond documents. There can be timing windows, procedures, and redemption premiums. If you want to remove the bond portion for long-term planning, ask the district or bond trustee for an estimated payoff and written confirmation of how prepayment affects the parcel’s future bills. O&M charges will continue since they fund annual services.
Tax treatment basics
Tax treatment depends on the character of the assessment and current tax law. Certain assessments may be treated like real property taxes or deductible expenses, while others are capital in nature or not deductible. Speak with a qualified tax professional to understand what applies to your situation.
If you miss a payment
CDDs can pursue collection remedies for unpaid assessments. Nonpayment can lead to liens and foreclosure procedures under Florida law. This affects title and can disrupt a sale or refinance, so stay current and contact the district promptly if issues arise.
Questions to ask early
Use these prompts with your agent, the seller, and the district manager:
- Is this property inside a CDD? What is the district name and parcel ID within the district?
- What is the current annual assessment for this parcel, with a breakdown of bond vs O&M?
- How is the assessment collected, and when are payments due?
- Are there any pending special assessments or unfunded capital projects?
- Is bond prepayment allowed, and what procedures and payoffs apply to this parcel?
- Where can I access district meeting minutes, adopted budgets, audits, and the contact for the district manager?
- What is the current balance of district bond debt and the bond maturity schedule?
- Has the current year’s assessment been paid, and how will closing prorations work?
- Lender questions: how will the assessment be counted for qualification, and will it be escrowed?
Buyer action checklist
Early in your search
- Ask whether each home under consideration is in a CDD, and request the district name and parcel assessment schedule.
- Obtain the most recent district budget, assessment roll, and meeting minutes.
Before loan approval and closing
- Provide your lender with the adopted budget or assessment statement and confirm how it will be treated in underwriting.
- Confirm whether assessments are collected on the county tax bill or billed directly, and whether your lender will escrow payments.
- Verify who pays what at closing and request payoff quotes for any outstanding amounts the seller must satisfy.
For long-term ownership
- Review meeting minutes and annual budgets each year for trends in O&M or upcoming projects.
- Track the bond maturity schedule and request payoff options if you plan to redeem the bond portion in the future.
Local guidance that helps
In Saint Johns and across St. Johns County, parcel-level verification is essential. The exact amount, collection method, and duration of CDD assessments can differ even within the same community. Check county property and tax records, review district budgets and minutes, and ask for written breakdowns of bond vs O&M. These steps will help you compare homes fairly and plan your budget with confidence.
Ready for next steps?
If you want clarity on CDDs while comparing neighborhoods and new construction options, you are in the right place. Our team helps you verify assessments early, coordinate with your lender, and structure offers with clean, accurate numbers. Exceeding your expectation is our standard. Reach out to The Newcomer Group for local guidance tailored to your move.
FAQs
What is a CDD in Florida?
- A Community Development District is a local government unit that finances and maintains infrastructure and amenities for a defined area, with parcel-level assessments to fund bonds and operations.
Are CDD fees the same as HOA dues?
- No, CDD assessments are governmental special assessments tied to a district, while HOA dues are contractual association fees; a property can have one or both.
Where will I see CDD fees on my bill?
- Many districts place assessments as non-ad valorem line items on the St. Johns County tax bill, while others bill owners directly through the district manager.
Can I remove CDD fees by paying off bonds?
- You may be able to prepay the bond portion if allowed by the bond documents, but O&M assessments continue because they fund annual services and maintenance.
Do CDD fees affect mortgage approval?
- Yes, lenders count recurring CDD assessments in your housing expense and debt-to-income ratio, so provide the annual amount to your lender early.
Do CDD fees end when I sell the home?
- The obligation follows the property, not the owner; at closing, assessments are typically prorated, and the buyer assumes future assessments after the transfer.
