Curious why some Tampa listings show a separate fee on top of HOA dues and property taxes? If you are looking at newer or master-planned communities in Hillsborough County, you will likely see a Community Development District, or CDD, listed as a line item. Understanding what it is, what it funds, and how it affects your monthly budget can help you compare neighborhoods with confidence.
In this guide, you will learn how CDDs work in Florida, what their assessments typically cover, where to expect them around Tampa, how to verify the exact amount on a specific property, and how to factor them into your mortgage planning. Let’s dive in.
CDD basics in Hillsborough County
What a CDD is
A Community Development District is a special-purpose local government that finances, builds, and maintains infrastructure and amenities in new or master-planned communities. In Florida, the framework for CDDs is set by Florida Statutes Chapter 190, which covers creation, powers, governance, elections, and dissolution.
How CDDs are created and governed
Developers often establish a CDD to pay for roads, stormwater systems, and amenities up front. The district issues bonds, then levies assessments on properties that benefit from the improvements. A board of supervisors governs the district. It is usually developer-led early on and transitions to resident-elected seats as the community matures under the process described in Chapter 190.
What CDD fees cover and how they are structured
Two parts to most CDD assessments
- Debt service assessments. These repay the bonds used to build the community’s infrastructure and amenities. They are typically fixed by the bond schedule for 20 to 30 years.
- Operations and maintenance (O&M) assessments. These fund ongoing upkeep, services, and reserves. O&M can change each year based on the district’s adopted budget.
What your dollars fund
CDDs commonly fund both capital improvements and ongoing services, such as:
- Roads, stormwater systems, water management ponds, bridges, sidewalks, and sometimes street lighting
- Parks, pools, recreation centers, and amenity campuses
- Landscaping, security, facility staffing, insurance for district assets, utilities for common areas, and administrative costs
CDDs are governmental units, while HOAs are private associations. It is common to have both in the same community. Each has a separate budget and fee structure.
How long CDD assessments last
A CDD can remain active for decades. Debt service continues until bonds are repaid, and the district may continue to operate and maintain facilities afterward according to its legal framework in Chapter 190.
Where you will see CDDs around Tampa
CDDs are common in Tampa’s newer and master-planned communities. You will most often encounter them in large subdivisions and mixed-use developments built on previously undeveloped land, especially projects started since the 1990s and 2000s that used municipal-style bond financing. Hillsborough County public records maintain the official district boundaries and active assessments.
How to confirm a CDD on a specific property
Where CDD information shows up
- MLS listing fields and remarks may indicate a CDD, though this is not guaranteed.
- Seller disclosures often reference special assessments or a CDD by name.
- The annual property tax bill usually lists the CDD as a separate line item when it is collected with taxes.
- Public records and bond filings include budgets, assessment schedules, and debt information.
Step-by-step verification
- Ask the listing agent to confirm the annual CDD amount, broken out by debt service and O&M, and whether it appears on the tax bill or as a separate invoice.
- Pull the parcel’s current-year bill through the Hillsborough County Tax Collector to see special assessments levied on the property.
- Confirm parcel details and assessment flags with the Hillsborough County Property Appraiser.
- Review district budgets, assessment methodology, and bond disclosures on the MSRB’s EMMA system, which houses official statements and continuing disclosures for municipal bonds.
- If needed, locate recorded bond or assessment documents via the Hillsborough County Clerk of Court, then ask the title company whether any unpaid assessments or one-time charges apply at closing.
How much CDD fees cost in Tampa
CDD assessments vary widely. In many Tampa-area master-planned communities, a common range cited in local market coverage is roughly 100 to 400 dollars per month. Some districts are lower, and large amenity packages or significant infrastructure can push assessments higher. The only authoritative number for a specific home is the district’s official assessment schedule and the amount shown on the tax bill.
Examples for quick math
These scenarios are examples to help you budget. Always verify with district documents and the tax bill.
- Example A: Annual CDD 1,200 dollars. Monthly equivalent 100 dollars.
- Example B: Annual CDD 2,400 dollars. Monthly equivalent 200 dollars.
- Example C: Annual CDD 4,800 dollars. Monthly equivalent 400 dollars.
Budgeting CDDs into your monthly payment
The simple formula
When you compare neighborhoods, include the CDD alongside other recurring costs:
- Mortgage principal and interest
- Property taxes divided by 12
- Homeowners insurance divided by 12
- HOA dues
- CDD assessments divided by 12
- Mortgage insurance if applicable
- Utilities and other recurring costs
Your total monthly housing cost equals principal and interest, plus taxes and insurance, plus HOA dues, plus the monthly CDD equivalent, plus mortgage insurance if required.
What can change your cost
- O&M budgets can adjust each year
- Districts can issue new bonds to fund additional projects
- Assessment allocations can shift as phases build out
- Some districts allow prepayment of assessment principal according to bond terms
Lender, tax, and closing considerations
- Lender treatment. Many lenders treat recurring CDD assessments like taxes for monthly qualifying. They may require escrows. Ask your loan officer how your program handles CDDs.
- Taxes and deductibility. O&M charges are generally not deductible like ad valorem property taxes. Interest components tied to municipal-style bonds can have different tax treatment. Consult a tax advisor for your situation.
- Closing and proration. If the CDD is collected on the tax bill, it is typically prorated at closing similar to property taxes. Some districts bill separately or have one-time items, so confirm with your title agent.
- Budgeting discipline. The Consumer Financial Protection Bureau explains how lenders evaluate taxes and assessments within total housing costs. For general context, see the CFPB’s resources for homebuyers on budgeting and escrow practices at the CFPB and then confirm specifics with your lender.
HOA vs. CDD: the key differences
- Nature. A CDD is a governmental unit created under state law. An HOA is a private association governed by covenants.
- Funding. CDDs use assessments to repay bonds and to fund O&M. HOAs collect dues for community rules enforcement and amenities they control.
- Billing. CDD assessments often appear on the county tax bill as special assessments, while HOA dues are billed by the association.
- Governance. CDD boards follow public-meeting and budgeting processes. HOA boards follow their bylaws and covenants.
Smart checklist for Tampa buyers
Use this quick list to avoid surprises and budget accurately:
- Ask the listing agent to confirm if a CDD applies, the current annual amount, and how it is billed.
- Verify the amount on the Hillsborough County Tax Collector site and cross-check the parcel record with the Property Appraiser.
- Pull the district’s latest budget and official statement on EMMA to see assessment methodology and remaining bond term.
- Ask the title company about any unpaid assessments or one-time charges due at closing.
- Confirm with your lender how CDD assessments factor into qualifying and escrow.
- Compare total monthly costs across neighborhoods using the formula above.
- If CDD costs affect affordability, consider negotiating price or expanding your search to areas without a CDD.
Plan with confidence
When you know how CDDs work and where to find precise numbers, you can make apples-to-apples comparisons across Hillsborough County communities. If a neighborhood’s amenities are a priority, a CDD can be a straightforward way to pay for high-quality infrastructure with transparency through public records. If you prefer lower monthly carrying costs, you can target communities without CDDs or with smaller assessments.
If you want help verifying assessments, modeling total monthly costs, or comparing neighborhoods across Tampa and the Gulf Coast, connect with Amanda Van Slyke for a private, research-driven consultation.
FAQs
What is a CDD fee and why does it appear on Tampa tax bills?
- A CDD fee is a special assessment from a local district that funds community infrastructure and ongoing maintenance, often shown as a separate line on your Hillsborough County tax bill.
How can I confirm whether a Tampa home has a CDD and the exact amount?
- Check the listing and seller disclosures, then verify on the Hillsborough County Tax Collector site and review district documents on EMMA for the official assessment schedule.
Are CDD fees tax-deductible like property taxes in Florida?
- O&M portions are generally not deductible like ad valorem taxes, while interest tied to municipal-style bonds can have different treatment, so consult a tax advisor.
Can CDD assessments increase over time in Hillsborough County?
- O&M assessments can change with annual budgets, and districts can approve new bonds for projects under legal processes set by Chapter 190.
How do lenders treat CDD assessments when qualifying me for a mortgage?
- Many lenders include recurring CDD assessments in your housing expense and may require escrow, so discuss specifics with your loan officer early in the process.
