Eyeing a new build in Davenport and noticing a “CDD fee” on the listing? You are not alone. Many master-planned communities around ChampionsGate and Posner Park use CDDs, and you deserve a simple, clear explanation before you buy. In this guide, you will learn what a CDD is, how the fees work, how they affect your monthly payment, and the exact steps to verify costs for any Davenport property. Let’s dive in.
What a CDD is
A Community Development District, or CDD, is a special-purpose local government created under Chapter 190, Florida Statutes to plan, finance, build, and maintain public infrastructure for a defined area. In large master-planned communities, CDD bonds often fund roads, water and sewer lines, stormwater systems, streetlights, entry features, landscaping, and recreation facilities.
A CDD is governed by a board of supervisors. Early on, the developer usually holds board seats; over time, control transitions to supervisors elected by residents. Meetings, budgets, and many records are public. In Central Florida and Polk County, this model is common because it spreads infrastructure costs over many years and many property owners.
How CDD fees work
CDD fees are special assessments, usually non-ad valorem, that are separate from regular property taxes. Most districts use two parts:
- Capital or debt assessment. Repays bonds that financed infrastructure. These assessments often run 20 to 30 years, following the bond schedule.
- Operations and maintenance assessment. Funds ongoing services and upkeep like landscaping, amenity operations, and lake maintenance. This is annual and ongoing.
Collection can occur on your Polk County tax bill as a non-ad valorem line item or through a separate invoice from the district or its management company. These assessments are typically liened against the property. If unpaid, they can lead to collection actions similar to other special assessments. Always review the district’s adopted assessments and bond documents for specifics.
Payment impact and budgeting
Your monthly housing cost includes more than principal and interest. In Davenport, plan for these items:
- Mortgage principal and interest
- Property taxes (ad valorem)
- CDD assessments (non-ad valorem)
- HOA dues, if applicable
- Homeowner insurance and any PMI
- Utilities and routine maintenance
If the CDD appears on your Polk County tax bill, divide the annual amount by 12 to estimate a monthly equivalent. Many lenders include CDD assessments in qualification and may escrow them if they are on the tax bill. If billed separately, your lender could still consider them in your debt-to-income calculation or require you to pay them outside escrow.
A simple hypothetical example
This example is for illustration only. Always use the actual figures from public records and district documents.
- Home price: $450,000
- Annual property tax: $6,000
- Annual CDD assessment: $2,400 (capital + O&M)
- Annual HOA dues: $1,200
Monthly impact of taxes, CDD, and HOA is (6,000 + 2,400 + 1,200) ÷ 12 = $800 per month. Your total monthly housing cost would be Mortgage P&I + $800 + insurance + utilities. Do not rely on averages. Verify the current assessment and the bond amortization schedule for the district.
Spot a CDD in listings
You can often identify a CDD by checking a few places on a listing or in public records:
- MLS data fields. Look for a CDD line item, Other Fees, or notes like “Mandatory CDD.”
- Tax bill details. Non-ad valorem assessments appear separately from ad valorem taxes.
- Seller disclosures. Many sellers and developers list the presence of a CDD or bond assessment.
To verify amounts, pull the parcel record at the Polk County Property Appraiser and view the latest tax bill breakdown via the Polk County Tax Collector. These are authoritative local sources.
Davenport due diligence checklist
Use this step-by-step process for any Davenport property, especially near ChampionsGate or Posner Park:
- Confirm the district. Ask, “Is the home within a CDD? What is the district name and number?”
- Get the current annual assessment. Request the total for your specific parcel, broken into capital and O&M, and ask whether it is billed on the tax bill or separately.
- Request key district documents. Ask for the latest adopted budget and the bond amortization schedule with remaining years and amounts.
- Check public records. Review the parcel at the Property Appraiser and tax roll details with the Tax Collector. For recorded district formation and bond instruments, search the Polk County Clerk of Court.
- Ask about special assessments. Confirm whether any new bonds or special assessments are planned.
- Clarify payment logistics. Who collects the assessment and on what schedule?
- Governance timing. Ask when the CDD board is expected to shift to resident control if it is still developer-controlled.
- Talk to your lender early. Confirm how the CDD will be treated for qualification, escrow, and any program-specific requirements.
Sample script you can use
“Please provide the district name, the latest adopted budget, the current annual assessment for this parcel separated into capital and O&M, the bond amortization schedule, and whether any new assessments are planned. Also confirm whether the assessment is on the Polk County tax bill or billed separately.”
Compare HOA and CDD
HOAs and CDDs can exist side by side. An HOA manages community rules and some private amenities, funded by HOA dues. A CDD funds and maintains certain public infrastructure and district assets using special assessments. Developers sometimes advertise low HOA dues while using a CDD to fund infrastructure. The smart move is to compare the total recurring charges that affect you, which means HOA dues plus CDD assessments plus property taxes.
Bond timelines and life
Capital assessments often last as long as the bonds, which can be 20 to 30 years or more, depending on the schedule. Ongoing operations and maintenance assessments continue each year to fund services, and they can change as budgets change. The only way to know your long-term cost is to review the district’s current budget and the bond amortization schedule.
Local resources for verification
For Davenport and the rest of Polk County, use these official sources to verify facts and amounts:
- Legal framework: Chapter 190, Florida Statutes
- Parcel data and assessments: Polk County Property Appraiser
- Tax bill and non-ad valorem details: Polk County Tax Collector
- Recorded district and bond documents: Polk County Clerk of Court
For federal tax treatment of assessments and lender program specifics, consult your tax professional and your mortgage lender, since practices and eligibility can vary.
Your next step
If you are comparing Davenport communities near ChampionsGate or Posner Park, get clarity on the CDD early. Pull the latest tax bill, request the district budget and bond schedule, and share them with your lender to confirm monthly impact. If you want a second set of eyes and local guidance, connect with The Home Squad. We will help you spot CDDs, verify the real numbers, and compare total costs across neighborhoods so you can buy with confidence.
FAQs
What is a CDD in Florida?
- A Community Development District is a special-purpose local government under Chapter 190, Florida Statutes that finances and maintains public infrastructure for a defined area.
How do I find a CDD fee in Davenport?
- Check the parcel at the Polk County Property Appraiser and the latest tax bill via the Polk County Tax Collector, then request the district’s adopted budget and bond schedule.
Do CDD fees affect mortgage approval?
- Lenders typically include recurring CDD assessments in your housing expense for qualification, which can influence your debt-to-income ratio and escrow.
Are CDD assessments tax deductible?
- Tax treatment can vary based on whether the assessment is for capital improvements or operations; consult a tax professional for your specific situation.
Can I pay off a CDD bond early?
- It depends on the district’s bond documents and redemption terms; request the amortization schedule and ask the district manager about prepayment options.
What happens if I do not pay a CDD assessment?
- CDD assessments are generally liened against the property, and failure to pay can lead to collection action; verify the district’s procedures and timelines.
