HOA vs CDD Fees: What New-Home Buyers Pay in Florida

When you shop for a new construction home in Florida, the listing price is rarely the whole story. Most new communities come with recurring fees and in Florida you will almost certainly encounter two distinct types: a Homeowners Association (HOA) fee and, in many new developments, a Community Development District (CDD) assessment. Both appear on your monthly statement. Both are mandatory. But they are completely different instruments created under different Florida statutes, and confusing them is one of the most expensive mistakes a first-time new-home buyer can make.

This guide explains exactly what each fee is, what Florida law says about them, how much they typically cost, and how to calculate your true all-in monthly cost before you make an offer with every figure and statute cited to its primary source.

What Is an HOA in Florida?

A Homeowners Association (HOA) is a private, nonprofit corporation that owns and manages common areas and enforces community standards within a residential development. HOAs in Florida are governed by Florida Statute Chapter 720 (the Homeowners' Association Act), which sets out the rights and obligations of both the association and individual homeowners.

HOAs are formed when a developer records a Declaration of Covenants, Conditions, and Restrictions (CC&Rs) with the county before the community is built. Membership is automatic and mandatory for every buyer who purchases in the community and you cannot opt out.

What HOA Fees Cover

HOA fees pay for the ongoing operation and maintenance of shared community features. Typical HOA expense categories in Florida new-home communities include:

•       Lawn care and landscaping of common areas

•       Community pool, clubhouse, fitness center maintenance

•       Gated entry systems and security

•       Community roads (if private) and parking areas

•       Exterior maintenance in townhome or villa communities

•       Reserve fund contributions for major future repairs

•       Professional management company fees

•       Community liability insurance

Typical HOA Fee Ranges in Florida New-Home Communities 

Note: These are typical ranges based on Central Florida market conditions as of 2025. Actual fees vary significantly by community, builder, and amenity level. Always request the full HOA budget and current financial statements before closing.

What Is a CDD in Florida?

A Community Development District (CDD) is a unit of special-purpose local government created under Florida Statute Chapter 190 (the Uniform Community Development District Act of 1980). Unlike an HOA, a CDD is not a private organization, it is a government entity with the power to issue tax-exempt municipal bonds, levy assessments, and construct public infrastructure.

CDDs are created when a developer petitions the Florida Land and Water Adjudicatory Commission (FLWAC) or a local government to establish the district before building begins. The developer uses the CDD to finance the initial construction of roads, water systems, stormwater management, parks, recreational facilities, and other infrastructure using tax-exempt bonds that are far cheaper to service than conventional construction financing.

What CDD Assessments Cover

CDD assessments are split into two distinct components that buyers often conflate:

1. Debt Service Assessment (the bond repayment component)

This is the homeowner's annual share of repaying the bonds the CDD issued to build the community's infrastructure. It is fixed and appears as a line item on your annual property tax bill not as a monthly HOA payment. The debt service period typically runs 20–30 years. For new homes in large Florida CDDs, this component commonly ranges from $1,500 to $5,000+ per year, or roughly $125 to $420+ per month when amortized.

2. Operations and Maintenance Assessment (the O&M component)

This is the ongoing annual cost to operate and maintain the facilities the CDD built like stormwater systems, community parks, lighting, and landscape buffers. The O&M assessment also appears on the property tax bill and typically ranges from $300 to $2,000+ per year depending on community size and amenities. 

Critical buyer note: Unlike HOA fees, CDD assessments are collected as part of your property tax bill through the county tax collector meaning they are not optional, they carry the same enforcement mechanisms as property taxes (including liens for non-payment), and they do not disappear when the community is fully built. HoweverFor CFB homes we charge no CDD.

CDD vs HOA Florida: The Key Differences Side by Side

The CDD Bond: What 'Buying Down' the Bond Means

When a developer builds a CDD community, they issue bonds to fund infrastructure construction. Those bonds have a principal balance. The developer typically passes that balance to buyers in one of two ways:

Option 1: Carry the bond (most common for resale buyers): The buyer assumes the outstanding bond balance, which is then repaid through the annual debt service assessment on the property tax bill over the remaining bond term (typically 15–30 years).

Option 2: Pay off the bond at closing ('buying down the bond'): The buyer pays a lump sum at closing to retire the outstanding bond principal. This eliminates the debt service component of the CDD assessment permanently though the O&M assessment continues indefinitely.

Buying down the bond can make financial sense when the lump sum is less than the present value of 15–25 years of debt service payments. Your lender and the CDD's bond prospectus will have the exact outstanding balance. This should always be negotiated as part of your purchase contract.

Can a Community Have Both an HOA and a CDD?

Yes — and in large Florida new-home developments, this is the rule, not the exception. Most master-planned communities built since 2000 in Florida operate both a CDD (for infrastructure financing) and one or more HOAs (for community standards and amenity management).

This is why buyers in communities like those near LPGA International in Daytona Beach, or large master-planned communities in Seminole and Volusia counties, often see three separate recurring line items:

•       HOA fee — paid monthly to the homeowners association

•       CDD debt service — paid annually via the property tax bill

•       CDD O&M — paid annually via the property tax bill

In some communities, the CDD handles the recreational amenities (pools, fitness centers, trails) while the HOA handles the architectural review, community rules enforcement, and common area landscape. The lines can overlap which is why reading both the HOA documents and the CDD bond prospectus before closing is essential.

How to Calculate Your True All-In Monthly Cost

Before making an offer on any new-home community in Florida, calculate the true all-in monthly cost using this framework:

Florida Law: What Sellers Must Disclose About CDD and HOA Fees

Florida law has specific disclosure requirements for both HOAs and CDDs that protect buyers but only if you know to ask for them.

HOA Disclosure Requirements (Chapter 720)

• Sellers of homes in HOA communities must provide the buyer with a disclosure summary before contract execution, stating the existence of the HOA and the obligation to pay fees (Fla. Stat. § 720.401)

• Buyers have a 3-day right of rescission after receiving the HOA disclosure documents if they were not provided before the contract was signed

• The HOA must provide its current financials, budget, rules, and reserve study upon written request within 10 business days.

CDD Disclosure Requirements (Chapter 190)

• Florida Statute § 190.048 requires that any contract for sale of land within a CDD include a specific disclosure: the property is within a Community Development District, the buyer will be subject to assessments, and the outstanding bond principal must be disclosed

• The disclosure must include the total outstanding bond balance attributable to the parcel ,this is the amount the buyer either carries in the debt service assessment or pays off at closing

• As with HOA documents, buyers should request the full CDD bond prospectus, the current operations and maintenance budget, and the most recent annual CDD meeting minutes before closing

HOA and CDD Fees at CFB Homes Communities

CFB Homes builds in communities across Central Florida  some with CDDs, some with HOAs only, some with both. For first-time new-home buyers, one of the most useful things we do before a contract is signed is walk through the complete fee picture for the specific community and lot under consideration.

Here is how the fee structure typically looks across CFB Homes' current communities:

Important: CDD status and outstanding bond balances change as communities are built out and bonds are paid down. The table above reflects general community structure as of mid-2026. Always request written confirmation of the current HOA fee, CDD debt service balance, and O&M assessment for the specific lot before signing any purchase contract.

Contact CFB Homes for current fee details on any community →

What to Ask Before You Sign: An HOA/CDD Due Diligence Checklist

Use this checklist before signing any new-home purchase contract in Florida:

Final Words:

HOA fees and CDD assessments are two of the most commonly misunderstood costs in Florida new-home buying and the confusion is understandable. They are both mandatory, both recurring, and both invisible in the listing price. But they are created under entirely different Florida statutes, collected through entirely different mechanisms, and carry entirely different long-term financial implications.

CFB Homes walks every buyer through the complete fee picture for their specific community including current HOA fees, CDD status, outstanding bond balances, and what each assessment actually covers before any purchase agreement is signed. That transparency is part of our process in every market we build in: Sanford, Daytona Beach, and East Orlando.

Talk with CFB Homes about fees, communities, and new home options in Central Florida →