You spotted a “CDD fee” on a Sarasota listing and wondered what it means for your budget. You are not alone. Community Development District assessments can affect your monthly costs, mortgage qualification, and resale plans. In this guide, you will learn what a CDD is, how the fees work in Sarasota, and how to find the exact amount for any property. Let’s dive in.
What a CDD is in Florida
A Community Development District is a public, special-purpose government created under Chapter 190 of the Florida Statutes. It plans, finances, builds, and maintains community infrastructure within a defined area. That can include roads, water and sewer systems, stormwater facilities, sidewalks, parks, and landscaping.
Developers commonly use CDDs to fund large-scale improvements by issuing bonds repaid over time by property owners in the district. Over time, control of the CDD board typically shifts from the developer to residents through elections, following statutory timelines.
What a CDD fee covers
CDD assessments usually include two parts:
- Bond assessments. These pay back the bonds issued to build infrastructure. They are often fixed for the bond term and remain until the debt is paid off or prepaid as allowed by the bond documents.
- Operations and maintenance (O&M) assessments. These fund ongoing upkeep, services, insurance, and administration for district facilities. The CDD board adopts the O&M budget every year, so this amount can change over time.
How fees are billed in Sarasota
Most CDD assessments appear on your Sarasota County property tax bill as a non-ad valorem assessment. That means they are billed alongside property taxes but are legally separate from ad valorem taxes based on value. Some districts or specific charges may be direct-billed instead of appearing on the tax roll.
If you do not pay, Florida law allows the district to enforce the lien, similar to other non-ad valorem assessments. Always confirm how your specific parcel is billed so you can plan your cash flow and escrow setup.
CDDs vs. HOAs
A property can be in both a CDD and an HOA, and each serves a different role:
- CDD. A public entity that funds and maintains community infrastructure and certain facilities. It sets assessments through a public budget process.
- HOA. A private association that enforces community covenants and manages private amenities. It charges dues under the community’s governing documents.
You may pay both, and they cover different services. Make sure you review each one separately when comparing properties.
What this means for your budget
CDD assessments affect your total cost of ownership and monthly housing budget. The impact can range from a few hundred dollars to several thousand dollars per year, depending on the district and bond structure. Lenders often treat recurring CDD assessments as part of your housing expense, so the amount can influence loan qualification. Some lenders escrow these payments with taxes and insurance, while others do not. Ask your lender early in the process how they will handle it.
How to find out if a property has a CDD
Use this sequence to identify and verify CDD assessments for a Sarasota property:
- Sarasota County Tax Collector. Look up the parcel’s tax bill. If the CDD places assessments on the tax roll, you will see a non-ad valorem line item for the district. This is a quick way to confirm the presence of a CDD and the current billed amount.
- Sarasota County Property Appraiser. Review the parcel detail page. It often flags special districts and may list related assessment codes.
- Title commitment and closing statement. Your title company should identify recorded assessments. Any amounts due at closing will be listed.
- Seller disclosures and new-construction documents. For new builds, the purchase contract and settlement statement usually outline any CDD prepayments or assessments. Ask for the district’s adopted budget and assessment roll.
- District manager or district website. Contact the district’s manager to confirm the exact bond and O&M amounts for your parcel, plus any planned changes.
- Sarasota County Clerk of Court records. For deeper research, formation documents, bond indentures, and assessment methodologies are recorded in the official records.
Key questions to ask
Before you make an offer, get answers to these:
- Is the property inside a CDD? If yes, what is the total annual assessment, and how much is bond vs. O&M?
- Is the assessment on the county tax bill or direct-billed?
- When do bond assessments end, and is prepayment allowed?
- Are O&M increases or special assessments planned?
- Will the lender escrow CDD assessments, and how will that affect your qualification?
- Are there planned capital projects or future bonds that could raise assessments?
Implications for buyers and sellers
- Affordability and demand. CDD assessments increase the recurring cost of ownership, which can affect buyer affordability and demand in the resale market.
- Bond maturity. When bonds are paid off, the bond portion may drop or disappear. O&M charges typically continue for upkeep.
- Mortgage underwriting. Lenders typically include CDD assessments in your housing ratios. Confirm the documentation they require and whether they will escrow.
- Disclosure. Assessments are public-record items and should appear during title and tax review. Sellers and listing agents generally disclose known special assessments, but you should verify through the county and district sources.
New construction and closing
Developers often use CDDs in newer Sarasota-area communities. For new construction, it is common for contracts to address CDD-related prepayments or assessments due at closing. Review the contract and settlement statement, and ask for the adopted assessment roll and budget before you sign.
Where you are likely to see CDDs in Sarasota
CDDs are common in larger master-planned and newer developments throughout Sarasota County. Older, established neighborhoods are less likely to have a CDD. Because every subdivision is different, do not assume. Always look up the parcel and confirm the details with the district manager.
Buyer checklist: verify the numbers
Use this quick list to protect your budget and avoid surprises:
- Check the county parcel page and tax bill for non-ad valorem assessments.
- Request the district’s adopted assessment roll and adopted budget.
- Ask the seller or agent whether any CDD amounts are due at closing.
- Contact the district manager to confirm current and projected assessments and the bond maturity date.
- Ask your lender how CDD assessments will be handled for underwriting and escrow.
- Review HOA obligations separately and confirm what each entity covers.
The bottom line
A CDD fee in Sarasota is a public assessment that funds community infrastructure and ongoing maintenance. It is not the same as HOA dues and it is not a property-value tax, but it affects your monthly cost and loan qualification. If you verify the exact amount for the parcel, understand the bond timeline, and check the O&M budget, you can make a confident decision about total cost of ownership.
If you want help reading a tax bill, contacting a district manager, or comparing communities with and without CDDs, reach out. You will get clear answers, local context, and a plan for your next move. Connect with Unknown Company to talk through your options or Get Your Free Home Valuation. Hablamos español.
FAQs
What is a CDD fee in Sarasota real estate?
- A CDD fee is a non-ad valorem assessment set by a Community Development District to fund infrastructure and maintenance within a defined area in Sarasota County.
How are CDD assessments billed on my Sarasota home?
- Most appear on your Sarasota County property tax bill as a non-ad valorem line item, though some districts may direct-bill certain charges.
What is the difference between a CDD fee and HOA dues?
- A CDD is a public entity funding infrastructure and services, while an HOA is a private association that enforces covenants and manages private amenities; you may pay both.
Will my CDD fee ever go away?
- The bond portion typically ends when the debt is repaid or prepaid; O&M assessments usually continue as long as the district exists and provides services.
Can I prepay my CDD bond assessment?
- Many districts allow prepayment under their bond documents, sometimes with specific procedures or terms; confirm options with the district manager.
How do lenders treat CDD fees in mortgage approval?
- Lenders generally count recurring CDD assessments in your housing expense and may escrow them; ask your lender how they will handle yours.
What if the seller did not disclose a CDD?
- CDD assessments are public record and should appear on the county tax bill and in title work; verify through these sources and consult counsel if needed.
