HOA vs CDD Fees in Florida: What's the Difference?

In St. Johns County and Northeast Florida, HOA fees and CDD fees are two separate, mandatory costs that often appear on the same property, and confusing them is one of the most expensive mistakes a homebuyer can make. An HOA (homeowners association) is a private organization that governs community standards and amenities; a CDD (community development district) is a unit of local government that finances infrastructure through long-term bonds, with repayment billed on your property tax statement. Most large master-planned communities in the region carry both. I walk almost every buyer through this distinction before we tour a CDD community, because the two costs work in completely different ways, and understanding both before you make an offer determines how accurately you can budget your true monthly housing cost.

What Is an HOA, and What Do HOA Fees Cover?

HOA fees fund the private management and maintenance of shared community life after the neighborhood is built. A homeowners association is a private, nonprofit corporation established by a developer when the community's founding documents, the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), are recorded with the county. In Florida, non-condominium HOAs are governed by Florida Statute Chapter 720, the Florida Homeowners' Association Act.

Membership is mandatory the moment you close on a home inside the community. You cannot opt out, and you cannot negotiate the base fee.

What your HOA dues typically pay for:

• Maintenance of common areas: pools, fitness centers, clubhouses, playgrounds, and trail systems
• Landscaping of shared spaces and community entrances
• Gated entry systems and any private road maintenance
• Reserve fund contributions for future capital repairs
• Professional management company fees and community liability insurance
• Architectural review and enforcement of community rules

HOA fees are billed directly by the association on a monthly, quarterly, or annual schedule. They do not appear on your county property tax bill.

In St. Johns County's mid-range to luxury master-planned communities, annual HOA dues for single-family homes generally span from roughly $1,200 to $3,400 or more per year, depending on amenity depth and community type, based on aggregated listing and association disclosure data across the region (as of Q2 2026). Gated luxury enclaves with country club access can run considerably higher.

HOA fees can also include special assessments, one-time charges levied when the reserve fund is insufficient to cover major unexpected repairs. A failing pool deck, storm damage to a clubhouse, or a community road repaving can all trigger a special assessment. Reviewing the association's reserve study before closing is one of the most important due-diligence steps a buyer can take.

What Is a CDD, and How Are CDD Assessments Different?

A community development district is not a private organization. It is a unit of special-purpose local government created under Florida Statute Chapter 190, the Uniform Community Development District Act. This distinction matters for every aspect of how the fee works: how it is collected, how long it lasts, and what happens when you sell.

A developer petitions the Florida Land and Water Adjudicatory Commission or a local government to establish a CDD before construction begins. The CDD then issues tax-exempt municipal bonds to finance the community's foundational infrastructure, roads, water and sewer systems, stormwater management, parks, and major recreational facilities. Because these bonds carry a government tax-exempt status, developers can access lower borrowing costs, which is why large master-planned communities in Northeast Florida can open with full resort-style amenity networks on day one rather than promising them for "future phases."

The construction costs are then passed to buyers over time through annual assessments collected not by the HOA, but as a non-ad valorem line item on your St. Johns County property tax bill.

The Two Components of Every CDD Assessment

What CDD assessments typically fund in Northeast Florida communities:

• Roads, sidewalks, and stormwater drainage systems
• Community parks, trails, and major recreational facilities
• Water and sewer infrastructure within the district
• Ongoing landscape maintenance of district-owned buffers and common areas

HOA vs. CDD in St. Johns County: A Side-by-Side Comparison

Which St. Johns County Communities Have CDDs, and Which Don't?

Most of St. Johns County's large master-planned communities built since 2000 carry a CDD; two of the most prominent exceptions are SilverLeaf and Bartram Ranch, which were deliberately built without one. The answer shapes your monthly budget for decades, so it is worth knowing community by community before you tour.

According to public district records and FY 2025-26 adopted budgets, communities including Nocatee (Tolomato CDD, with verified FY2025 total assessments of approximately $1,770 to $2,420 per year for St. Johns County villages), Palencia (Marshall Creek and Sweetwater Creek CDDs, approximately $3,000 to $4,930 per year per district-adopted budgets), Shearwater (Trout Creek CDD, approximately $2,320 to $2,965 per year per the FY 2025/26 adopted assessment schedule), RiverTown, Durbin Crossing, and Julington Creek Plantation all carry CDD assessments. The Julington Creek Plantation CDD lists FY2025 total assessments of $1,385.44 for single-family units and $845.57 for townhome units per the Julington Creek Plantation CDD FY2025 adopted budget.

The new EverRange community, located in Duval County's South Jacksonville corridor along US-1 between Nocatee and eTown, is served by the Coastal Ridge CDD, with assessments structured into property tax bills as the community builds out.

Two notable no-CDD options in the broader Northeast Florida market are worth understanding in detail. SilverLeaf, an approximately 11,000-acre master-planned community in northwest St. Johns County along St. Johns Parkway, was deliberately built without a CDD; its shared amenities are funded through the HOA instead. SilverLeaf's master HOA runs approximately $1,200 per year for most single-family residents, with sub-HOA fees varying by neighborhood tier. The premium Reverie 55+ section carries higher dues reflecting its exclusive amenity center. No CDD assessment appears on any SilverLeaf parcel's tax bill, which is what makes it a compelling mid-to-upper-range option for buyers who want master-plan scale without the district assessment line.

Bartram Ranch, a luxury Toll Brothers community in St. Johns County along State Road 9B, was also built without a CDD, making it one of the few higher-end new-construction options in the county that combines oversized home sites, resort-style amenities, and no district assessment. As always, verify the specific parcel's tax bill before making an offer, as assessment structures can vary within large master plans.

The honest trade-off: CDD communities funded their full amenity networks up front, on day one. No-CDD communities either funded amenities through higher HOA dues or opened with a more modest shared-amenity footprint. Neither structure is inherently better, but they produce very different monthly cost profiles that are worth running the numbers on side by side before you tour.

How CDD Assessments Affect Your True Monthly Housing Cost

Here is where many buyers get surprised after closing: the listing price, the builder's payment calculator, and even many online mortgage estimates typically do not include the CDD assessment in their "monthly payment" figure. To understand what you will actually pay each month, you need to calculate all components together.

True monthly housing cost formula:

Mortgage P+I + Property taxes (ad valorem) + Homeowner's insurance + HOA fee + (Annual CDD debt service ÷ 12) + (Annual CDD O&M ÷ 12) = Your actual monthly cost

As a general illustration using publicly available Northeast Florida community data (compiled from public district records and FY 2025/26 adopted budgets): a community with an annual CDD assessment in the $2,100 to $2,400 range adds approximately $175 to $200 per month to your carrying cost on top of HOA dues, taxes, insurance, and your mortgage, a figure that does not appear in the builder's advertised payment.

For mid-range and luxury St. Johns County communities specifically, buyers should budget for combined HOA and CDD obligations that can range from approximately $3,000 to $7,000 or more per year depending on the community, the phase, and lot width. Always confirm the exact figures for the specific parcel, not the community average, before writing an offer.

Homes across St. Johns County, spanning communities with and without CDDs, can be filtered by price and location on the listings page, and running the numbers through a mortgage calculator before you tour helps you model the full monthly cost.

The Bond Prepayment Factor: Why Two Identical Homes Can Have Different Costs

Bond prepayment allows a homeowner to pay off the outstanding CDD debt service principal in a lump sum at closing, eliminating that component from future annual assessments, which is why two homes on the same street, with the same floor plan and the same list price, can carry meaningfully different annual tax bills.

Under Florida law, some CDDs allow this lump-sum payoff at the time of sale. When a previous owner has already done this, the new buyer inherits a property with no remaining debt service component. Only the O&M assessment continues.

This means:

• A resale listing advertised as "bond paid" or "no bond" will have a lower ongoing CDD line than a comparable home where the bond is still active
• You cannot determine which situation applies from the listing price or the MLS description alone
• The county property tax records show the exact CDD assessment for any individual parcel

Always pull the county tax bill for the specific parcel, not the community's general fee range, before you make an offer. If you want to know the remaining bond principal on a specific parcel, and whether prepayment is an option, the most reliable approach is to contact the CDD management district directly and request a formal estoppel letter, which will itemize the outstanding balance attributable to that parcel.

What Florida Law Requires Sellers to Disclose

Both HOA and CDD obligations carry important disclosure considerations under Florida law, but the rules differ meaningfully depending on whether you are buying from a developer or purchasing a resale home.

HOA Disclosure Requirements

Under Fla. Stat. § 720.401, sellers of homes in HOA communities must provide a disclosure summary to the buyer before the purchase contract is signed. This summary confirms the HOA's existence and the obligation to pay fees. If the seller fails to provide it before contract execution, the buyer has a three-day right of rescission upon receiving it. The HOA must also furnish its current financials, budget, rules, and reserve study upon written request within 10 business days.

CDD Disclosure Requirements

Under Fla. Stat. § 190.048, every contract for the initial sale of a parcel of real property or a residential unit within a CDD, meaning contracts between the original developer and the first buyer, must include, immediately prior to the buyer's signature line, the following standardized disclosure statement in boldfaced conspicuous type:

"THE [Name of District] COMMUNITY DEVELOPMENT DISTRICT MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS, ON THIS PROPERTY. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS OF CERTAIN PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND ASSESSMENTS PROVIDED FOR BY LAW."

This statutory requirement applies specifically to developer initial sales. For resale transactions, there is no equivalent § 190.048 disclosure requirement. CDD obligations typically surface through the title search, the parcel's property tax bill, and, where available, a formal estoppel letter requested from the CDD management district. Buyers in resale transactions who want to confirm the outstanding bond balance and current annual assessment for a specific parcel should request that estoppel letter as part of their due-diligence process; it is the most authoritative document available for that purpose.

Even with these protections in place, buyers who do not know to look for the CDD line can miss it. Reviewing both the HOA disclosure documents and the parcel's full property tax bill during your due-diligence period, before you are past your inspection contingency, is essential regardless of whether your purchase is a new build or a resale.

Can a Community Have Both an HOA and a CDD?

Yes, and in St. Johns County's large master-planned communities, it is the norm rather than the exception. Most communities built since 2000 operate both structures simultaneously.

A common division of responsibility: the CDD finances and maintains foundational infrastructure (roads, stormwater, major parks) and sometimes large recreational facilities; the HOA handles architectural standards, day-to-day community rules, covenant enforcement, and smaller neighborhood amenities. In some communities, the CDD owns the amenity infrastructure while the HOA manages operations.

The result, for buyers, is three separate recurring line items:

1. HOA fee (paid directly to the association, monthly or quarterly)
2. CDD debt service assessment (annual, on the property tax bill)
3. CDD O&M assessment (annual, on the property tax bill)

All three should be in your budget calculation before you fall in love with a home.

Are CDD Assessments Tax-Deductible?

Generally, no. The IRS classifies CDD assessments as special assessments rather than ad valorem property taxes, so they are not deductible as real estate taxes for most homeowners on a primary residence. The debt service (bond repayment) portion in particular is repaying borrowed money, not paying a tax, and is not deductible. The O&M portion may have partial deductibility in some situations depending on individual tax circumstances. HOA fees on a primary residence are also generally not deductible on federal returns. See the FAQ below for additional guidance on this question.

Many homeowners pay the full county tax collector check, which bundles both the ad valorem property tax and the CDD assessment, and inadvertently deduct the entire amount. Only the true ad valorem portion qualifies. Consult a qualified tax professional to determine how CDD assessments affect your specific return.

Your Pre-Offer Due-Diligence Checklist

Understanding HOA vs. CDD fees in Florida is only the first step. The second is verifying the exact figures for the specific home you want before you commit to an offer. Before making an offer on any home in a St. Johns County or Northeast Florida CDD community, confirm the following:

• [ ] Pull the county tax bill for the specific parcel; confirm the CDD line, not the community average
• [ ] Determine bond status: is the debt service still active, or has the bond been prepaid?
• [ ] Request a CDD estoppel letter from the district management company; this is the authoritative source for the outstanding bond balance and current annual assessment on a specific parcel
• [ ] Request the CDD's current annual budget; this is a public document under Florida law
• [ ] Request the HOA disclosure packet (Fla. Stat. § 720.401); review the current budget and reserve study
• [ ] Calculate your true all-in monthly cost using the formula above
• [ ] Ask your lender to include both HOA dues and CDD assessments in your debt-to-income calculation; both are required to be counted during mortgage underwriting

If you are comparing a CDD community against a no-CDD community, normalize both to the same monthly cost formula before drawing conclusions. This is exactly the kind of math that separates Nocatee's CDD-funded amenities from the broader St. Johns corridor's fee structure, so it's worth running both sides side by side. A lower list price in a CDD community may carry a higher monthly cost than a higher-priced home with no CDD balance and a modest HOA.

FAQ: HOA vs. CDD Fees in Florida

Is a CDD fee the same as an HOA fee in Florida?

No. An HOA fee is paid to a private corporation (governed by Fla. Stat. Chapter 720) to maintain community amenities and enforce standards. A CDD assessment is levied by a unit of local government (governed by Fla. Stat. Chapter 190) to repay infrastructure bonds and fund ongoing operations. HOA fees are billed directly by the association; CDD assessments appear as a non-ad valorem line item on your annual county property tax bill. They serve different legal and financial functions and are collected through entirely different mechanisms.

Can a Florida community have both an HOA and a CDD?

Yes, and in St. Johns County's large master-planned communities, having both is the rule, not the exception. The CDD typically finances and maintains foundational infrastructure (roads, stormwater, major parks), while the HOA handles community rules, architectural review, and day-to-day shared amenity management. Buyers in these communities pay three separate recurring charges: the HOA fee, the CDD debt service assessment, and the CDD operations and maintenance assessment.

Does a CDD assessment ever go away?

The debt service (bond repayment) component ends when the bonds are fully retired, typically 20 to 30 years after district establishment, or can sometimes be eliminated early through a lump-sum prepayment at closing. The operations and maintenance assessment, however, continues indefinitely for as long as the CDD's infrastructure and amenities require upkeep. A home listed as "bond paid" still carries an ongoing O&M assessment.

Do HOA fees and CDD assessments affect my mortgage qualification?

Yes. Both affect your debt-to-income (DTI) ratio during mortgage underwriting. Lenders are required to include the monthly HOA fee and the monthly equivalent of any annual CDD assessment (annual amount ÷ 12) in your total housing payment calculation. A community with both a $150/month HOA and a $2,400/year CDD adds approximately $350/month to the housing cost your lender must account for, which can meaningfully affect how much home you qualify for.

How do I find the exact CDD amount for a specific home?

The most reliable source is the parcel's actual county property tax bill, available through the St. Johns County Tax Collector's public parcel search. Each district also publishes its annual adopted budget as a public record. For the outstanding bond balance on a specific parcel, request a formal estoppel letter from the CDD management district; this document itemizes both the current annual assessment and any remaining bond principal. The specific assessment can vary by lot width, phase, and bond prepayment status, meaning two homes in the same community can carry different amounts. Never rely solely on the listing description or a community-level fee estimate.

Are CDD assessments tax-deductible on federal returns?

Generally, no. The IRS classifies CDD assessments as special assessments rather than ad valorem real estate taxes, so they do not qualify as deductible property taxes for most homeowners on a primary residence. HOA fees are also generally not deductible. Consult a qualified tax professional for guidance specific to your situation.