By Jessica Schwartz, REALTOR® & Loan Originator · October 20, 2026
If you’re looking at newer homes in Port St. Lucie, you’ll run into three letters on almost every listing: CDD. Here’s what a CDD fee is, how it shows up in your payment, and what to ask before you buy.
What is a CDD?
A Community Development District is a special-purpose local government created under Chapter 190 of the Florida Statutes. Developers use them to finance the infrastructure a new community needs before homes can be built: roads, utilities, stormwater ponds, landscaping, and often clubhouses, pools and trails.
Instead of the developer paying for everything up front and building it into home prices, the district issues bonds to pay for the work. Homeowners inside the district then repay those bonds over time through an annual assessment.
In Port St. Lucie, CDDs are common in the newer master-planned areas west of I-95, including much of Tradition, Riverland and parts of PGA Village and Verano. Homes in the original city east of I-95 generally don’t have one, which is part of why no-HOA homes there can have a lower monthly cost.
The two parts of a CDD fee
| Part | What it pays for | Does it end? |
|---|---|---|
| Debt service | Repays the bonds that built the community’s infrastructure | Yes, when the bonds are paid off (often 20 to 30 years). Some districts allow an early payoff. |
| Operations & maintenance (O&M) | Ongoing upkeep of district-owned roads, ponds, landscaping and facilities | No. It continues and can change each year with the district’s budget. |
When you see a CDD figure on a listing, ask whether it includes both parts, and how many years are left on the debt-service portion.
How a CDD shows up in your monthly payment
CDD assessments are usually collected as a non-ad valorem assessment on your annual property tax bill. If you have an escrow account with your mortgage, your lender collects it monthly along with your property taxes and insurance.
That means two homes with the same price can have very different monthly payments. Here’s a simplified example:
| Home A (no CDD) | Home B (with CDD) | |
|---|---|---|
| Price | $450,000 | $450,000 |
| Annual CDD | $0 | $2,400 |
| Added to monthly payment | $0 | about $200 |
Illustration only. Actual CDD amounts vary widely by community and even by lot size within a community.
Lenders count the CDD in your debt-to-income ratio, so it also affects how much home you qualify for. This is one of the reasons I always run the full monthly number, not just principal and interest.
CDD vs. HOA: what’s the difference?
- Who runs it: A CDD is a unit of local government with a public board. An HOA is a private nonprofit association run by homeowners.
- How it’s billed: CDDs are usually on the property tax bill. HOA dues are billed by the association, monthly or quarterly.
- What it covers: CDDs fund infrastructure and its upkeep. HOAs typically cover common-area maintenance, rule enforcement and sometimes lawn care, cable or security.
- Can you have both? Yes. Many newer communities have a CDD and an HOA, and sometimes a master association plus a neighborhood association.
Is a CDD a bad thing?
Not necessarily. A CDD is part of how newer communities get built with quality roads, utilities and amenities. Some buyers prefer a newer home with a CDD over an older home that may need a new roof, A/C or plumbing. The key is going in with the full number so you can compare homes fairly.
Remember that the debt-service portion eventually ends, while HOA dues generally don’t. A home with only a few years left on its CDD bonds can be a better value than its current tax bill suggests.
Questions to ask before you buy
- Is the home in a CDD? (Florida law requires CDD disclosure in the sales contract.)
- What is the total annual assessment, split into debt service and O&M?
- How many years are left on the bonds, and is an early payoff allowed?
- Are there any new bond issues planned for future phases?
- What are the HOA dues on top of the CDD, and what do they cover?
- What was the most recent property tax bill for this exact address?
You can look up a property’s current assessments on the county tax collector’s website. I’m happy to pull them for any home you’re considering.
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General information, not legal, tax or financial advice. Confirm current assessments with the county tax collector, the district and the HOA. Jessica Schwartz, REALTOR® & Broker Associate, RE/MAX Gold. Loan Originator NMLS #2704014, RMI Brokers, Inc. dba One Brokerage, NMLS #2142653. Equal Housing Opportunity.