Thinking about buying in Davenport and seeing “CDD” on a listing or tax bill? You are not alone. Many of Davenport’s newer, master-planned neighborhoods use Community Development Districts, and those assessments affect your budget just like taxes or HOA dues. In this guide, you will learn what CDD fees cover, how they are billed in Polk County, and how to verify exact amounts before you make an offer. Let’s dive in.
What a CDD is in Florida
A Community Development District is a local, special-purpose government created under Florida Statutes, Chapter 190. Its job is to plan, finance, build, and maintain community infrastructure like roads, water and sewer systems, drainage, parks, streetlights, and amenity centers.
Developers often use CDDs to fund big upfront costs through tax-exempt bonds that are repaid over time by properties in the district. Early residents benefit from completed infrastructure without paying the entire cost at closing.
Control often starts with the developer and shifts to resident-elected board members once certain milestones or time periods are met. That transition can influence how operating budgets and assessments are set.
How CDD fees are structured
CDD charges are non-ad valorem assessments. That means they are not based on your property’s market value. They are typically set by lot or product type and may differ by parcel class.
Debt service assessments
- Purpose: Repay principal and interest on the bonds that funded capital projects.
- Timing: Set by the bond schedule. These amounts are generally stable until the bonds are paid off.
- Outcome: When bonds are retired, the debt-service portion can be reduced or drop off.
O&M assessments
- Purpose: Cover annual operating and maintenance items like landscaping, amenity operations, insurance, management, and repairs.
- Timing: Adopted annually by the district board. Amounts can change year to year with the budget.
How they are billed in Polk County
- Collection: Many Polk County CDD assessments appear on the county tax bill as non-ad valorem assessments. Some districts may bill directly depending on their arrangements.
- Appearance: On a tax bill, look for entries labeled CDD, Special Assessment, Debt Service, or Operating and Maintenance.
- Parcel-based: Amounts are levied on the parcel. Single-family, townhome, and commercial parcels may carry different charges.
How CDD fees affect your monthly budget
CDD assessments are usually listed as an annual total. To see your monthly impact, divide the annual assessment by 12. Include that number in your full housing budget alongside mortgage payment, property taxes, homeowners insurance, HOA dues, and utilities.
- Quick formula: Monthly CDD estimate = Annual CDD assessment ÷ 12.
- Total monthly housing cost: Principal and interest + Property taxes + Homeowners insurance + HOA dues + Monthly CDD + Utilities.
Mortgage qualification and escrow
Lenders typically include recurring CDD assessments in your housing expense for debt-to-income ratio calculations. Some loan programs or lenders also require CDD to be escrowed with taxes and insurance. Ask your loan officer how your program treats CDD and what documentation they need.
Prorations at closing
Because many CDD assessments are collected annually, your closing statement may show a prorated credit or debit between buyer and seller. The exact line items vary by closing agent and timing. Ask your title team to identify any CDD entries and confirm what is due at closing versus on a future bill.
Potential changes over time
- O&M can rise or fall each year with the budget.
- Debt service usually stays fixed until the bonds are paid, but it can change if the district issues additional bonds or refunding bonds with a different schedule.
- Governance matters. If the district is still developer-controlled, review meeting minutes and budgets to understand near-term plans.
Where to verify CDD information in Davenport
You can confirm whether a Davenport property sits in a CDD and what the current assessments are by checking a few local sources and documents.
Polk County records
- County tax bill: Review the non-ad valorem assessments section for CDD line items and amounts.
- Property appraiser: Parcel pages often note taxing districts and can indicate CDD boundaries or status.
- Clerk of Courts and county records: Bond documents, assessment resolutions, and any recorded liens are public record.
- County GIS maps: Many counties publish district boundaries that help you confirm whether a parcel is inside a CDD.
District websites and records
Each CDD adopts an annual budget and publishes public records such as meeting agendas, minutes, annual financials, and contact information for the district manager. These documents show current O&M assessments, planned projects, and discussions about new bonds.
Your transaction team
- Title company or closing agent: Ask for a municipal lien search and confirmation of any unpaid or special assessments. Clarify how the current year will be prorated.
- Lender: Confirm whether the CDD will be escrowed and how it affects your qualification.
- Listing agent or seller: Request recent CDD invoices, the adopted budget, and any community notices.
Buyer checklist for Davenport
Follow this step-by-step process to avoid surprises.
Before you make an offer
- Ask if the property is within a CDD. If yes, request the most recent annual assessment breakdown for debt service and O&M.
- Request the district’s adopted budget or a link to the district website.
- Ask whether the board is developer-controlled or resident-controlled.
- Check Polk County property records and the tax bill for non-ad valorem CDD entries.
During your inspection period
- Confirm with your lender how the CDD is treated for qualification and escrow.
- Have your title company run a municipal lien search to flag any unpaid amounts or special assessments.
- Read recent district meeting minutes and the adopted budget for any planned projects, new bonds, or fee changes.
At closing
- Verify how the current year’s assessment is prorated between buyer and seller.
- Confirm how you will pay going forward, either on the tax bill or via direct billing.
- Ask whether your mortgage escrow will include the CDD.
After you move in
- Save the annual billing timeline to your calendar so you do not miss the assessment window.
- Consider attending the district’s annual budget hearing if you want a voice in O&M levels and priorities.
Red flags to watch
- Very high annual per-lot assessments compared with nearby communities. Ask why. It could be large bond debt, a short amortization schedule, or high amenity costs.
- Recently issued or proposed bonds that may increase debt service.
- A developer-controlled board with many future phases still planned, which can affect assessments as the community builds out.
- One-time special assessments or large capital projects discussed in meeting minutes.
- Any unpaid assessments or related litigation noted in county records or district documents.
How CDDs differ from HOAs
- CDD assessments are governmental and non-ad valorem. They fund infrastructure and public-like services within the district.
- HOA dues are private, contractual assessments governed by community covenants. They cover items like community rules enforcement, common-area maintenance defined in the HOA documents, and sometimes amenities.
- Many Davenport properties have both. Budget for each separately.
Putting it all together
CDD assessments are common in Davenport’s newer neighborhoods and master-planned communities. When you understand the split between debt service and O&M, how the fees appear on your Polk County tax bill, and how your lender will treat them, you can budget with confidence and avoid last-minute surprises at closing. If you want help comparing communities or reading a district budget, reach out to a trusted local advisor who works these developments every day.
If you are weighing Davenport new construction or a resale in a CDD community, connect with APEX for clear guidance and a smooth, hospitality-led experience from search to closing.
FAQs
Are CDD fees the same as HOA dues in Davenport?
- No. CDD assessments are governmental non-ad valorem charges under Florida law, while HOA dues are private assessments under community covenants. You may have both.
Will CDD fees show on my Polk County tax bill?
- Often yes. Many districts use the county tax bill to collect non-ad valorem assessments. Some districts bill owners directly depending on their setup.
Do CDD assessments affect my mortgage approval?
- Lenders usually count recurring CDD amounts in your housing expense for debt-to-income ratio. Ask your loan officer how your program treats CDD and whether escrow is required.
Can CDD fees go down after I buy?
- Debt service can drop when bonds are paid off. O&M can decrease if the board lowers the budget, but it can also rise if costs increase or new projects are funded.
Can unpaid CDD assessments lead to foreclosure?
- Yes. Districts can place liens and may foreclose for unpaid assessments under Florida law.
How do I verify a specific home’s CDD amount in Davenport?
- Check the Polk County tax bill for non-ad valorem entries, request the latest CDD invoice from the seller, review the district’s adopted budget, and confirm with your title company and lender.
