What is a CDD?
Community Development District, or CDD, refers to a community that assesses fees to pay for infrastructure and amenities within the community. CDD fees are different from HOA fees in that they are incorporated into your annual property tax bill. This means that the fee will be incorporated into your mortgage, rather than paid separately.
What does a CDD fee cover?
Many communities with CDD fees offer extra amenities such as a community pool, playground or other common areas such as those. Here are a few things CDD fees can cover:
- Community amenities like pools or parks
- Infrastructure such as roads and sidewalks
- General maintenance
- Sewer and water
Why should I choose a CDD?
Home owners might be attracted to a CDD because the home prices within these communities are typically lower, due to deferred infrastructure costs. CDD fees are also tax deductible, while HOA fees are not. CDD communities may also have more lenient rules compared to an HOA.
When comparing homes, it is important to know what all is included and the additional costs associated with the amenities in the community.
A knowledgeable Realtor® can offer valuable information in regards to these extra terms associated with buying a home, and at Dream Builders Realty, we are happy to do just that. Let us worry about all those letters while you focus on finding your dream home!
