Thinking about buying in Estero and wondering what those CDD fees are on a listing or tax bill? You are not alone. Many buyers hear “CDD” and are unsure how it affects their monthly budget or long‑term costs. In this guide, you will learn what a CDD is, how fees are structured, how to estimate the monthly impact, and where to verify the exact numbers for any Estero property. Let’s dive in.
What a CDD is in Florida
A Community Development District (CDD) is a special-purpose local government that plans, finances, builds, and maintains public infrastructure for a defined community area. Think roads, water management, sewer, parks, landscaping, street lighting, and shared amenities.
In Florida, CDDs are established and governed under Florida Statutes, Chapter 190. A CDD is run by a board of supervisors. Early on, the developer typically appoints the board. Over time, control usually transitions to supervisors elected by residents.
CDDs have governmental powers to issue bonds, levy assessments, adopt budgets, and operate public facilities. They exist to fund long-life community infrastructure in a structured, transparent way.
CDDs vs. HOAs and your tax bill
A CDD is not the same as an HOA. An HOA enforces community covenants and manages certain services or amenities through HOA dues. A CDD funds and maintains public infrastructure and long‑term obligations through non‑ad valorem assessments. These assessments are not based on property value.
Many Estero CDD assessments appear on your annual property tax bill as non‑ad valorem line items collected by the county tax collector. You can review bills on the Lee County Tax Collector website. Some districts bill separately, so always confirm how a specific property is billed.
The two main CDD charges
Capital (debt service) assessment
This pays principal and interest on bonds the district issued to build infrastructure. It is typically a fixed annual amount per parcel based on the bond schedule.
Operations and maintenance (O&M) assessment
This covers the district’s annual operating budget for items like landscaping, amenity upkeep, utilities for common areas, insurance, and management. O&M is set each year in the adopted budget and can change as needs evolve.
Districts may also levy special or one‑time assessments for large repairs, improvements, or bond prepayments. Always ask if any special assessments are planned.
What CDDs typically cost
CDD assessments vary widely. The total of debt service plus O&M for a single‑family home can range from a few hundred dollars per year to several thousand dollars per year. The exact amount depends on the scale of infrastructure, number of homes sharing costs, amenity level, and bond terms.
Because variability is high across Estero communities, use these ranges as general context only. Always verify precise amounts for the property you are considering.
Estimate your monthly impact
- Take the total annual CDD amount for that parcel and divide by 12.
- Example: $2,400 per year equals about $200 per month.
- If billing is semiannual or annual, note the due dates and whether any prorated amounts will be collected at closing.
How to verify a property’s CDD in Estero
Use these steps to get accurate, current figures for any Estero address:
- Check the parcel’s tax bill. Many CDD assessments appear as non‑ad valorem line items on the annual statement from the Lee County Tax Collector. Verify the district name and current amounts.
- Identify the parcel and legal description. Use the Lee County Property Appraiser to confirm parcel details that match district records.
- Review bond schedules and disclosures. Bond debt and annual debt service per parcel are published on the MSRB’s EMMA portal. Search the district name at EMMA’s website to view official statements and continuing disclosures.
- Request district documents. Ask for the district’s most recent adopted budget, assessment methodology, and any notices of special assessments. These are often posted on the district’s website or available from the district manager.
- Confirm closing details. Seller or developer disclosures and the settlement statement should show any prorations, capital assessments due at closing, or special charges.
Comparing CDD vs. non‑CDD communities
Total monthly cost
Create an apples‑to‑apples comparison. Add HOA dues, CDD assessments divided by 12, property taxes, and insurance to see the true monthly cost across neighborhoods.
Amenities and infrastructure
CDDs often fund upgraded roads, drainage, utilities, and larger amenity packages. Decide whether the infrastructure and amenities justify the ongoing assessments for you.
Long‑term stability and resale
CDD debt is a long‑term obligation tied to the property. Some buyers prefer non‑CDD communities, while others value the amenities and predictable infrastructure funding. Review resale patterns where available and consider how the fee structure fits your plans.
Bond maturity and governance
Ask when bond debt is scheduled to retire. Debt service may decline once bonds are paid, although O&M continues. Also confirm when the CDD board transitions from developer control to resident‑elected supervisors, since that can influence budgets and priorities.
Smart questions to ask before you buy
Use this checklist with the seller, developer, or district manager:
- Is the property in a CDD? What is the district name and number?
- Is there outstanding bond debt assigned to this parcel?
- What are the current annual debt service and O&M assessments, and how are they billed?
- Will any capital assessments be due at closing?
- Are there planned budget increases or special assessments next year?
- When will board control transfer from the developer to residents?
Request copies of:
- The district’s most recent adopted annual budget and audited financials.
- The engineer’s report and the assessment roll or methodology by unit type.
- Bond offering documents or the district’s debt schedule, which you can locate via EMMA.
- The county tax bill and the Closing Disclosure to confirm prorations and charges.
Red flags to investigate
- Large, unexpected one‑time assessments or a pattern of frequent special assessments.
- Rapidly rising O&M budgets without clear explanations.
- A small number of future homes sharing large bond debt, which can raise per‑unit costs.
- Lack of transparency. Budgets, agendas, and minutes should be publicly available for a functioning CDD.
How lenders view CDD assessments
Most lenders include recurring CDD assessments in your housing cost calculations. Some loan programs may require proof of payment or set up an escrow. Ask your lender how they handle CDD assessments early in the process so there are no surprises.
The bottom line for Estero buyers
A CDD is a tool that funds the infrastructure and amenities many Estero communities enjoy. The cost varies, so the best move is to confirm the exact assessments for each property, convert that annual number to a monthly figure, and compare total monthly costs across neighborhoods. With clear numbers, you can decide whether the amenities, maintenance, and long‑term planning a CDD provides are worth it for you.
If you want local guidance as you compare CDD and non‑CDD options in Estero, our team is ready to help you analyze true monthly costs and negotiate with confidence. Connect with the Gina Guarino Group. Let Our Team, Be Your Team.
FAQs
What is a CDD in Florida and how is it governed?
- A Community Development District is a special-purpose local government that finances and maintains community infrastructure under Florida Statutes, Chapter 190, with a board that transitions from developer-appointed to resident-elected over time.
How are CDD fees collected on Estero homes?
- Many CDD assessments show up as non‑ad valorem line items on the annual tax bill collected by the Lee County Tax Collector, while some districts bill separately.
What is the difference between CDD assessments and HOA dues?
- CDD assessments fund public infrastructure and long‑term operations, while HOA dues enforce covenants and manage community services or amenities; many communities have both and you should total them for a true monthly cost.
Can CDD fees change or go away over time?
- Debt service may decline when bonds mature, but O&M assessments continue for ongoing maintenance; planned projects or budget changes can also raise assessments, so review the district’s budget and bond schedule each year.
Where can I find exact CDD amounts for an Estero address?
- Check the parcel’s tax bill on the Lee County Tax Collector, verify parcel details on the Lee County Property Appraiser, and review bond disclosures on EMMA for debt service schedules.
Do CDD assessments affect mortgage approval or escrow?
- Yes, lenders typically include recurring CDD assessments in housing cost calculations and may escrow them, so ask your lender how they will treat these assessments for your loan.
