CDD Fees in Orlando New Construction: What Buyers Must Know

Updated June 2026

What is a CDD?

A Community Development District (CDD) is a special taxing district that finances infrastructure in new construction communities — roads, utilities, sidewalks, drainage, parks, and amenities. Almost every new construction community in Central Florida has a CDD.

How Much Do CDD Fees Cost?

In the Orlando metro area, CDD assessments typically range from:

• Low: $1,500-$2,000/year (older CDDs mostly paid off)
• Average: $2,500-$3,500/year (most new communities)
• High: $4,000-$6,000/year (brand new communities with extensive infrastructure)

How CDDs Work

1. Developer creates a CDD to fund infrastructure
2. CDD issues bonds to pay for roads, utilities, parks, etc.
3. Homeowners pay annual assessment to retire the bonds
4. Assessment appears on your property tax bill
5. Over 20-30 years, bonds are paid off and CDD assessment decreases

CDD vs HOA — What's the Difference?

• CDD: Pays for infrastructure (roads, utilities, amenities). Government entity. Appears on tax bill. Tax deductible.
• HOA: Pays for maintenance (landscaping, pool upkeep, management). Private. Separate monthly payment. NOT tax deductible.

Most new construction communities have BOTH a CDD and an HOA.

Total Monthly Housing Cost Example

For a $450,000 new construction home in Orlando:

• Mortgage (5.5%, 30yr, 10% down): ~$2,300/month
• Property tax: ~$375/month
• CDD: ~$250/month
• HOA: ~$150-$300/month
• Insurance: ~$250/month
• Total: ~$3,325-$3,475/month

Can You Avoid CDDs?

Very few new construction communities in Orlando have no CDD. Some options:

• Ryan Homes communities sometimes have no CDD
• Osprey Ranch by K. Hovnanian — reportedly no CDD
• Older communities where CDD is mostly paid off

Is a CDD Bad?

No — CDDs fund the infrastructure that makes communities nice (parks, pools, sidewalks). The key is understanding the total cost BEFORE you buy. Always ask your builder for the exact annual CDD amount.

Questions to Ask Your Builder

1. What is the annual CDD assessment?
2. What does the CDD cover?
3. How many years until the CDD bonds are paid off?
4. What is the monthly HOA fee on top of the CDD?
5. Are there any special assessments planned?