A community development district tax, or CDD, is a bond that is created by the initial developer.
When a developer initially creates the infrastructure for a community such as roads, bridges, water supply, sewers, electrical grids, telecommunications, and so forth it is very costly. In the past, the developer absorbed this cost and passed it on in the price of the home. In recent years some developers have created these bonds or CDDs to future owners.
When you purchase in a community that has a CDD, you must agree to be responsible for the repayment of this bond until it is paid in full. The terms vary but are generally 20-30 years. This amount will be on your annual tax bill as a community assessment. This is why you may see the taxes in a particular community to be much higher than others.
Some examples of communities that have a CDD are Cedar Hammock, City Gate, Fiddler’s Creek #1, Fiddler’s Creek #2, Flow Way, Hacienda Lakes, Heritage Bay, Heritage Greens (aka Dove Point), Key Marco, Lely, Mediterra South, Naples Heritage, Naples Reserve, Parklands Collier, Pelican Marsh, Pine Air Lakes, Port of The Islands, The Quarry, Talis Park (fka Tuscany Reserve), Verona Walk and Wentworth Estates.
For a list of Florida CDD’s in Collier County, please visit the following website…