Looking at homes in Reunion and seeing “CDD” on the tax bill? You are not alone. Community Development District fees show up across the Orlando resort corridor and they can change your monthly budget. You want a clear, local explanation before you fall in love with a property. In this guide, you will learn what a CDD is, how fees work in Osceola County, what they pay for in resort communities, and how to plan your budget with confidence. Let’s dive in.
What a CDD is in Florida
A Community Development District is a special-purpose local government created under Florida law. It plans, finances, builds, operates, and maintains community infrastructure within its boundaries. The district can issue municipal bonds, adopt budgets, and levy assessments to fund improvements and ongoing services.
Most CDDs start while a community is being developed. Early on, the developer typically controls the board of supervisors. Over time, control usually shifts to resident-elected board members as the neighborhood matures.
How CDD assessments work
CDD assessments usually have two parts:
- Capital or bond (debt service): Pays principal and interest on bonds used to build infrastructure and amenities. This amount often follows a set schedule and continues until the bonds are paid off.
- Operation and Maintenance (O&M): Funds ongoing costs like landscaping, lighting, insurance, staffing, and routine repairs. O&M is budget-driven and can change from year to year.
In Osceola County, many CDDs place these non-ad valorem assessments on your annual property tax bill. They appear as a separate line item. Some districts bill owners directly instead. The method matters because it can affect how your lender escrows and qualifies your loan.
Bond obligations stay with the property. If the district needs to address unexpected costs or new projects, it can levy special assessments following statutory procedures. O&M levels are set during public budget meetings.
What CDDs fund in Reunion-area communities
In master-planned and resort neighborhoods around Reunion, CDD funds commonly support the backbone of the community. Examples include:
- Roads, stormwater systems, and drainage ponds
- Utility lines or lift stations in some cases
- Entry landscaping, medians, and signage
- Streetlighting and sidewalks
- Community and recreation centers, clubhouses, pools, and fitness facilities
- Trails, pocket parks, and playgrounds
- Security gate infrastructure
O&M dollars usually cover staffing and maintenance of shared amenities, groundskeeping, utilities for common areas, insurance, and district administration.
CDD vs HOA: what changes your budget
A CDD is a public entity. It finances and maintains infrastructure and can levy assessments with statutory authority. A Homeowners Association (HOA) is a private association created by recorded covenants. It collects dues, manages neighborhood rules, and funds items not covered by the CDD.
Governance is different too. A CDD board is a public board that holds noticed meetings. An HOA board operates under association bylaws and Florida HOA statutes. Many Reunion-area communities have both, which means you budget for CDD assessments and HOA dues.
How CDDs affect your monthly costs
CDD assessments are mandatory and recurring. To budget accurately for a Reunion or nearby property:
- Get the current annual debt service and O&M assessments for the specific parcel. The property tax bill and the district’s adopted budget are the best sources.
- Add the two annual amounts together and divide by 12 for a monthly estimate.
- Include that number with your mortgage principal and interest, property taxes, HOA dues, insurance, utilities, and maintenance.
Here is a simple illustration. If the annual CDD total is $3,000, the monthly impact is $250. Your lender will usually include mandatory assessments in your debt-to-income calculation, which can affect your maximum loan amount.
How to confirm CDD status and exact numbers
Before you tour or write an offer in Reunion or nearby communities, confirm the CDD details for that property:
- Check the Osceola County property tax bill for “non-ad valorem” or “CDD” line items.
- Review the listing and seller disclosures for CDD and HOA notes.
- Ask the district manager or visit the CDD’s public website for the adopted budget and assessment roll.
- Use the Florida special district directory to confirm the district name and contacts.
- Request closing documents from the seller that show any recorded assessments.
- Ask your lender and title company how the CDD will be treated for escrow and underwriting.
Buyer checklist for Reunion and nearby communities
Use this quick checklist to keep your numbers tight:
- Verify the property is inside a CDD using the tax bill and county records.
- Obtain the current adopted CDD budget and assessment roll.
- Review bond documents or the official statement to see remaining term and annual debt service.
- Ask for the last 12 months of CDD statements or the most recent tax bill.
- Confirm whether there is also an HOA and collect the HOA resale documents.
- Ask your lender how the CDD will be counted for DTI and escrow.
- Convert the annual CDD assessment to a monthly figure and add it to your affordability model.
Tips for owners and investors near Reunion
If you plan to use a home as a vacation property or short-term rental, factor CDD and HOA totals into your net operating income. Well-funded districts can support attractive amenities that help bookings. On the flip side, higher assessments can narrow margins, so build conservative projections.
For resale planning, watch the CDD’s meeting minutes and budget process for any expected increases or special assessments. Also track opportunities like bond refinancings that could change annual debt service.
Next steps
Understanding CDDs is the key to an accurate budget and a confident offer in Reunion and the surrounding resort corridor. If you want help pulling the exact numbers for a specific address, we can gather the tax bill, district budget, and HOA details and coordinate with your lender so your payment estimate is real, not rough.
Have questions about a property on your shortlist? Reach out to Mark Werner for guidance tailored to your goals in Osceola County.
FAQs
What is a Community Development District in Florida?
- A CDD is a public special district that finances, builds, and maintains community infrastructure and can levy assessments to fund bonds and operations.
How are CDD fees collected in Osceola County?
- Many districts place non-ad valorem assessments on the county property tax bill as a separate line item, while some bill owners directly.
What do CDD fees cover in Reunion-area communities?
- Typical items include roads, stormwater systems, landscaping, lighting, clubhouses, pools, parks, trails, and district administration and insurance.
How do CDD fees affect loan qualification for a Reunion home?
- Lenders usually count mandatory CDD assessments in debt-to-income ratios and may escrow them if they appear on the tax bill.
How is a CDD different from an HOA in Central Florida communities?
- A CDD is a public entity with statutory assessment authority, while an HOA is a private association that enforces covenants and collects dues for separate services.
Where can I find the exact CDD amount for a Reunion property?
- Check the Osceola County property tax bill, the CDD’s adopted budget and assessment roll, and the seller’s closing documents, then confirm with your lender and title team.
