Are CDD assessments reduced by Florida's homestead exemption?

No. The homestead exemption applies only to ad valorem property taxes. CDD assessments are non-ad-valorem special assessments and are not reduced by the homestead exemption or any other ad valorem exemption. Homeowners pay the full CDD assessment regardless of homestead status.

Does Save Our Homes cap CDD assessment increases?

No. The Save Our Homes 3% assessment cap applies only to the ad valorem assessed value of homestead property. CDD assessments are imposed based on the property's share of district costs and increase as the CDD budget increases — there is no statutory annual cap on CDD assessment growth. The CDD's annual budget is approved by the district's board of supervisors at public meetings.

How do I find out if a property is within a CDD?

Check the current property tax bill or TRIM notice — CDD assessments appear as separate line items distinct from ad valorem taxes. The county property appraiser's website typically lists CDD status for each parcel. For new construction or initial sales within the district, §190.048 specifically requires the developer to include the boldfaced statutory disclosure in the contract immediately before the purchaser's signature. Resale buyers should still verify CDD status through public records and ask sellers directly even though §190.048's statutory requirement is limited to initial sales.

Can the debt-service portion of CDD assessments be paid off early?

It depends on the bond structure. Many CDD bonds are prepayable — the homeowner can pay the remaining bond share as a lump sum at closing (or at any time) and stop paying the debt-service component going forward. The operations and maintenance component continues indefinitely regardless of debt prepayment. Buyers interested in prepayment should request the current outstanding balance and prepayment quote from the CDD before closing.

How does Florida's CDD framework compare to California's Mello-Roos?

Both are special-tax frameworks that fund community infrastructure outside the standard property tax framework. Florida CDDs operate under Chapter 190 and are special-purpose local governments with elected boards. California Mello-Roos Community Facilities Districts operate under Gov. Code §53311 et seq. and are typically formed by the local agency creating them. Both produce additional annual obligations on property owners beyond standard property tax, and both have statutory buyer-disclosure frameworks — though Florida's §190.048 disclosure requirement is limited to initial sales within the CDD, while California's Mello-Roos disclosure framework reaches resale transactions as well.

What happens if a CDD property owner doesn't pay the assessment?

CDD assessments are collected by the county tax collector alongside ad valorem property taxes and operate as a lien on the property. Failure to pay results in the property going to tax sale through the same process as unpaid property taxes — the lien holder (typically the CDD or a tax certificate purchaser) can ultimately force a tax deed sale. CDD assessments cannot be selectively skipped while paying ad valorem taxes; the bill is collected as a single obligation.

Florida Community Development Districts (CDDs): Fees, Special Assessments, and §190.048 Disclosure

TL;DR

Florida Community Development Districts (CDDs) under the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, are special-purpose local governments that fund and operate community infrastructure (roads, water and sewer, drainage, recreational amenities) through district-imposed assessments paid by property owners. CDD assessments appear on the annual property tax bill alongside ad valorem taxes but are not subject to the homestead exemption, the Save Our Homes 3% assessment cap, or the §193.155 portability framework — they are a separate financial obligation that can range from modest to substantial depending on the bond debt and infrastructure financed by the district. Fla. Stat. §190.048 requires the statutory CDD disclosure in each contract for the initial sale of a parcel or residential unit within the district, in boldfaced and conspicuous type larger than the rest of the contract, immediately before the purchaser's signature. For the broader Florida property tax framework, see our Florida property tax assessment process guide.

The Chapter 190 CDD framework

Chapter 190 created the CDD as a special-purpose local government with authority to finance and operate community infrastructure within a defined district. CDDs are formed at the request of developers (typically when planning a new residential community) and approved through a process that, for districts of more than 2,500 acres, runs through the Florida Land and Water Adjudicatory Commission. Smaller districts can be created by county or municipal ordinance. Once formed, the CDD's board of supervisors (initially developer-controlled, transitioning to landowner-elected as residents move in) governs the district and oversees its budget and assessments.

The CDD's primary function is financing infrastructure that would otherwise burden the developer's initial pricing — roads, water and sewer systems, stormwater drainage, lake and wetland management, recreational facilities, and the long-term operation and maintenance of these systems. The CDD issues bonds to fund the initial construction, then imposes assessments on properties within the district to repay the bonds (typically over 20-30 years) and to fund ongoing operations and maintenance.

How CDD assessments work mechanically

CDD assessments come in two primary forms. Debt-service assessments repay the bonds the CDD issued to construct the initial infrastructure — these are typically the larger component, run for the bond's amortization period (often 20-30 years from issuance), and are sometimes prepayable as a lump sum at closing. Operations and maintenance assessments fund the CDD's ongoing operations (lawn maintenance of common areas, lake management, security if applicable, administrative costs) and run indefinitely as long as the CDD exists.

Both assessment types appear on the annual TRIM notice and property tax bill from the county tax collector. The tax bill shows the CDD assessments alongside ad valorem taxes (just value × millage), but the CDD assessments are not ad valorem — they are imposed based on the property's share of the district's costs, typically calculated per unit, per acre, or per equivalent residential unit, rather than as a percentage of value. This non-ad-valorem character has important consequences for the homestead exemption and the Save Our Homes cap.

Interaction with homestead exemption and Save Our Homes

The homestead exemption under Fla. Const. Art. VII §6 reduces the assessed value of a primary residence for ad valorem tax purposes — typically by up to $50,000 against most taxing units. The Save Our Homes assessment cap under Fla. Const. Art. VII §4(d) limits annual assessed-value increases on homestead property to 3% or the rate of inflation, whichever is lower. Both protections apply only to ad valorem taxes, not to special assessments. CDD assessments are not ad valorem taxes and are not reduced by the homestead exemption, not capped by Save Our Homes, and not subject to portability when the homeowner moves to a new homestead.

The practical consequence is that a CDD homeowner's effective annual property tax burden has two components: the ad valorem portion (which benefits from the homestead protections) and the CDD assessment portion (which does not). For new-construction CDD properties, the CDD assessment component can rival or exceed the ad valorem component in the early years. For buyers comparing properties, the CDD assessment must be treated as a separate ongoing cost, not as part of the protected property tax bill. The interaction with the broader property tax framework is covered in our Florida homestead exemption and Save Our Homes guide.

§190.048 — the statutory disclosure requirement

Section 190.048 requires the statutory CDD disclosure in each contract for the initial sale of a parcel of real property and each contract for the initial sale of a residential unit within the district. The disclosure must appear immediately before the space reserved in the contract for the purchaser's signature, in boldfaced and conspicuous type which is larger than the type in the remaining text of the contract. The statutory language states in substance that the CDD may impose and levy taxes or assessments on the property to pay construction, operation, and maintenance costs of certain public facilities and services of the district, set annually by the governing board, in addition to county and other local governmental taxes and assessments. The §190.048 disclosure requirement applies to initial sales (typically developer-to-buyer transactions); subsequent resales of CDD properties are not within the §190.048 scope, though best practice and buyer due diligence still warrant disclosure of CDD status.

The §190.048 disclosure requirement is conceptually parallel to California's Mello-Roos disclosure framework under Civil Code §1102.6b. Both require the seller to notify the buyer of a special-tax obligation that operates outside the standard property tax framework. The Florida disclosure is satisfied by including the prescribed boldfaced language in the initial-sale contract before the purchaser's signature; California's framework requires a separate notice and a different rescission window applicable to resale transactions as well. The substantive purpose is the same — buyers should understand the additional financial obligation that comes with the property. For California's parallel property-tax framework including Mello-Roos community facilities districts, see our California Proposition 13 and property tax assessment guide.

CDDs in practice — central Florida and elsewhere

CDDs are concentrated in newer master-planned communities, particularly in central Florida (Orange, Osceola, Polk, Lake, Sumter counties), southwest Florida, and parts of the I-4 corridor. Many large communities built since 2000 are CDDs or have substantial CDD overlay components. Buyers shopping these areas should ask specifically about CDD status, current annual assessments, the remaining bond amortization period, and whether the debt-service component is prepayable.

The assessment amounts vary widely based on the infrastructure financed, the size of the bond issuance, and the operations and maintenance budget. A modest CDD with simple roads and basic stormwater imposes meaningfully lower annual assessments than an amenity-heavy CDD with golf courses, water parks, and elaborate clubhouses. The debt-service component typically runs 20-30 years from bond issuance and may be prepayable; the operations and maintenance component continues indefinitely. The total cost of ownership for a CDD property can be substantially higher than the headline purchase price suggests once the annual CDD obligations are factored in alongside ad valorem property taxes.

Frequently Asked Questions

Are CDD assessments reduced by Florida's homestead exemption?: No. The homestead exemption applies only to ad valorem property taxes. CDD assessments are non-ad-valorem special assessments and are not reduced by the homestead exemption or any other ad valorem exemption. Homeowners pay the full CDD assessment regardless of homestead status.
Does Save Our Homes cap CDD assessment increases?: No. The Save Our Homes 3% assessment cap applies only to the ad valorem assessed value of homestead property. CDD assessments are imposed based on the property's share of district costs and increase as the CDD budget increases — there is no statutory annual cap on CDD assessment growth. The CDD's annual budget is approved by the district's board of supervisors at public meetings.
How do I find out if a property is within a CDD?: Check the current property tax bill or TRIM notice — CDD assessments appear as separate line items distinct from ad valorem taxes. The county property appraiser's website typically lists CDD status for each parcel. For new construction or initial sales within the district, §190.048 specifically requires the developer to include the boldfaced statutory disclosure in the contract immediately before the purchaser's signature. Resale buyers should still verify CDD status through public records and ask sellers directly even though §190.048's statutory requirement is limited to initial sales.
Can the debt-service portion of CDD assessments be paid off early?: It depends on the bond structure. Many CDD bonds are prepayable — the homeowner can pay the remaining bond share as a lump sum at closing (or at any time) and stop paying the debt-service component going forward. The operations and maintenance component continues indefinitely regardless of debt prepayment. Buyers interested in prepayment should request the current outstanding balance and prepayment quote from the CDD before closing.
How does Florida's CDD framework compare to California's Mello-Roos?: Both are special-tax frameworks that fund community infrastructure outside the standard property tax framework. Florida CDDs operate under Chapter 190 and are special-purpose local governments with elected boards. California Mello-Roos Community Facilities Districts operate under Gov. Code §53311 et seq. and are typically formed by the local agency creating them. Both produce additional annual obligations on property owners beyond standard property tax, and both have statutory buyer-disclosure frameworks — though Florida's §190.048 disclosure requirement is limited to initial sales within the CDD, while California's Mello-Roos disclosure framework reaches resale transactions as well.
What happens if a CDD property owner doesn't pay the assessment?: CDD assessments are collected by the county tax collector alongside ad valorem property taxes and operate as a lien on the property. Failure to pay results in the property going to tax sale through the same process as unpaid property taxes — the lien holder (typically the CDD or a tax certificate purchaser) can ultimately force a tax deed sale. CDD assessments cannot be selectively skipped while paying ad valorem taxes; the bill is collected as a single obligation.

Bottom Line

Florida Community Development Districts under Chapter 190 are special-purpose local governments that fund and operate community infrastructure through non-ad-valorem assessments imposed on properties within the district. CDD assessments appear on the property tax bill alongside ad valorem taxes but are not reduced by the homestead exemption, not capped by Save Our Homes, and not subject to portability. Annual CDD obligations can range from modest to substantial depending on bond debt, infrastructure financed, amenities, and the operations-and-maintenance budget. §190.048 requires the boldfaced statutory disclosure in each contract for the initial sale of a parcel or residential unit within the district, immediately before the purchaser's signature — the Florida parallel to California's Mello-Roos disclosure framework. For the broader Florida property tax framework, see our Florida property tax assessment process guide. For California's parallel property-tax framework including Mello-Roos CFDs, see our California Proposition 13 and property tax assessment guide.

Source: Florida Statutes Chapter 190 — Community Development Districts · Fla. Stat. §190.048 — Sale of Real Estate Within District · Florida Special District Accountability Program