Do Community Development District Fees Ever Go Away?

Community Development District (CDD) fees represent special assessments levied on properties within specific areas to fund infrastructure development and maintenance. While some components of CDD fees may expire, other portions typically continue as long as the district operates.

How Community Development District Fees Are Structured

Community Development Districts are governmental entities established to finance and manage infrastructure and services for new communities. These districts fund the construction of various public facilities, which can include roads, utilities, water management systems, parks, and recreational amenities. The costs associated with developing and maintaining these improvements are recovered through special assessments imposed on properties located within the district.

These special assessments are generally collected as part of the annual property tax bill, appearing as “non-ad valorem assessments.” This means the fees are not based on the property’s value but rather on the benefit received from the district’s services and infrastructure. The obligation for these fees is tied to the property itself, transferring to new owners upon sale.

The Expiration of CDD Debt Assessments

A significant portion of CDD fees is allocated to repaying bonds that the district issues to finance the initial infrastructure development. These bonds provide the upfront capital needed for large-scale projects, allowing communities to have amenities and infrastructure in place from the outset. Property owners within the district repay this debt over a defined period.

The repayment schedule for these bonds typically ranges from 20 to 30 years. Once the bonds are fully repaid, the debt assessment portion of the CDD fee associated with that specific bond series ceases. Property owners often have the option to pay off their bond assessment in full prior to its scheduled maturity.

Ongoing CDD Operations and Maintenance Assessments

Another component of CDD fees covers the ongoing operations and maintenance (O&M) of the infrastructure and amenities managed by the district. These assessments ensure the continued upkeep of facilities such as landscaping, streetlights, storm retention ponds, community pools, and other shared spaces. The O&M portion funds the day-to-day administration and operational needs of the district.

Unlike the debt assessments, O&M assessments generally continue for as long as the Community Development District exists and provides services. While the amount of these assessments may fluctuate annually based on the district’s budget and operational costs, this ongoing fee ensures the long-term quality and functionality of the community’s shared infrastructure.

Locating Information About Your Specific CDD Fees

Property owners can typically find their specific CDD fees on their annual property tax bill. Further information, including detailed assessment schedules, bond maturity dates, and the breakdown between debt and O&M components, can often be obtained from public records. The official website of the Community Development District or the local county property appraiser’s office are common resources for this information.