Community Development District (CDD)

A Community Development District (CDD) is a special government district created under Florida law to build and maintain community infrastructure, such as roads, drainage systems, utilities, and amenities. CDDs help fund development without placing extra financial burden on local governments. Developers pay for these improvements by issuing bonds, which are then repaid by homeowners through CDD tax assessments. These assessments are added to the homeowner’s property tax bill and are separate from city and county property taxes. For properties located within a CDD, Florida law requires that initial sale contracts include a specific disclosure. This disclosure must appear immediately before the buyer’s signature, be bold, clearly visible, and in larger print than the rest of the contract. It must state that the CDD may impose taxes or assessments on the property to pay for community facilities and services, and that these charges are in addition to all other taxes and assessments.This disclosure ensures buyers are fully aware of the ongoing financial obligations associated with owning property in a CDD.