Florida CDD Fees [THEY COST HOW MUCH!!]

What is a Community Development District in Florida? Why are CDD’s necessary? CDD’s are a common occurrence in Southwest Florida and many people are caught off guard by the extra cost that is associated with living within a community/development that has a CDD Fee.

CDD’s are responsible for bringing in the infrastructure into local housing developments. CDD’s are a 20-30 year bond that gets paid through your taxes annually.

Make sure you’re not caught off guard when you decide to buy a home in Florida, let us help you navigate this process whether you want to build new construction or are looking to buy an existing home.

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Noah Ward is a Licensed Florida Real Estate agent that specializes in New Construction and Real Estate Development. Over the past couple years he has grown a large social following by focusing on helping both future homeowners go through the new construction process and also investors with building houses at scale.

Noah is a Managing Partner at JN Development Group Inc, where the primary focus is providing the highest level of service for custom house builds and also helping real estate investors maximize their profits through real estate development.

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What in the world are CDD fees and why Are they here in the State of Florida Welcome back everyone to the Florida Real estate guide with your host no Ward And in this episode we are going to be Breaking down what exactly is a CDD fee And what are some things you have to Watch out for because it could cost you An extra couple thousand per year to Live in your specific Community if you Guys are new to this podcast thank you Very much for checking it out and don't Forget to go check out our social media Profiles on Instagram YouTube and Tik Tok where we are posting daily content On the newest construction here in Southwest Florida as well as real estate Development for our investor followers Too so let's kick off this episode Talking about what in the world does a CDD stand for so CDD stands for the Community Development district and what Exactly is a CDD and how much do they Really cost you right so CDD fees are Bonds that are given to Developers for The development of the infrastructure so That means your roadways you know your Underground utility ities Plumbing sewer Water bringing in city water into the Area bringing in city sewer into the Area and it basically is a fee for the Infrastructure and the amenities all Within the community and they are all Different depending on they are

Different among each community in terms Of prices and they are different from HOA fees because a lot of people get HOA Fees and CDD fees all mixed into one However CDD fees get tacked on at the End of the year to your annual taxes While h Joy fees are monthly or Quarterly expense so just keep that you Know in mind when you are looking at That is that cdds just get you tacked Onto your taxes and HOA fees are a Monthly or quarterly feed just depending On the specific HOA community that You're in so now you may be asking what Exactly does a CDD cost or what is the Cost of a CDD for communities right and So that answer is going to vary just Depending on communities however an Annual cost of a CDD can range anywhere From a, ,000 to a little over $2,000 Annually it just depends on how large The master plan Community is and how Much uh infrastructure they needed and How much that Bond needed to be to bring In all of those utilities so now what do The CDD fees really cover and why are They needed so the whole purpose of a CDD or Community Development District Fee it's basically to bring in all the Infrastructure and build up the Community so you see all these you know Large track home builders Neil Communities Taylor Morrison Mi homes all These guys building up these large

Tracks of land and building a lot of These houses and what they needed is They need to bring in the infrastructure Right so what happened is that they Needed a bond from the city so it's kind Of like a loan kind of um where they get The grant money and what happens is is That it basically goes to pay for the Developer to put in all of the you know Phone lines cable lines roads Electricity water city sewer all that Good stuff that that you know every Community needs um for housing right so That is that was the whole purpose of CDD fees now some people don't like them Just because they do cost an extra Couple thousand dollars but it all just Depends on where you want to live so Let's discuss some tips to know about CDD fees right so typically CDD fees are In newer master plan communities they Are the ones that typically have those CDD fees and these CDD bonds will last Anywhere between 20 to 30 years I'll Just depends on the specific kind of Bond that is with that Community the Biggest thing to know is that once the Bond is completed the annual cost Decreases and you will only be paying Basically a small upkeep charge for the Master plan community so some bonds Completely go away after 20 to 30 years While other bonds drop to you know a few Hundred per year all just depends on

What the CDD bond is all about um and so Just remember that not every Neighborhood community is going to have A CDD fee it all is is going to depend On the Builder um the location of the of The Community Development and also how Old the community development is and the Biggest thing is don't let the CDD fees Scare you I know it's another big it's Just another terminology word and Another couple thousand um that people Look at um but the biggest thing with Cdds is that it pays for a lot of great Amenities it pays for your shopping Dining Parks roadways throughout all These different communities it just Doesn't relate to you know residential Real estate goes into commercial and Everything like that so just keep that In mind when you are looking at that Don't let that scare you away because Some communities can be really worth it If it makes good Financial sense if it Doesn't it doesn't but at the end of the Day that is everything you need to know Realistically about CDD fees now I Personally live in a CDD community and I Think our Comm our CDD fee is about $1,900 annually and so you know Obviously our community is brand new It's only a couple years old so so we Will be going on for about 30 you know 28 more years whatever that may be for The bond and then it'll drop down to a

Few hundred after that as well so if you Guys have any other questions regarding You know CDD fees or anything you hear Back in any of these episodes feel free To reach out to us on our Instagram I Love to hear from you guys and also if You guys want us to go more in depth About a specific topic feel free to Reach out to us on our Instagram as well And message us there but if you guys Want to hear and see what we are doing On a daily basis with new construction In Sarasota and also real estate Development in Southwest Florida for our Investor followers go and follow us on Instagram YouTube and Tik Tok where we Continue to post daily content on all of Those social platforms but thank you Guys very much for listening to this Episode and we will catch you guys all Next week