What is a Community Development District Fee?
In Northern Florida, there are countless community development districts that have popped up over the years, from big to small and everything in between. These planned housing communities oftentimes require a private or government financial bond to aid in the planning and building of the communities, traditionally these bonds are quite hefty as they provide the financial means for the development to have a sufficient budget to not only build the homes but complete the entire housing community as a whole. When a community planner accepts a financial bond it is expected that repayment of the bond loan will be covered in usually two ways: repayment from the company/firm that created the community or through CDD fees (community development district fees).
How is a CDD Fee Calculated?
Community development districts aren’t just a standard fee attached to any home in Northern Florida, they are carefully calculated based on both the overall size of the bond and the number of parcels attached to the housing community. The way the community development district fees are calculated is basically the amount of the bond minus by how much the company/firm has repaid or will repay towards the bond and then divided by the approximate number of parcels of land are in the community. From that point the community development district fees are given a set repayment plan for each buyer based upon the reasonable amount of time needed to repay the cost of the total fee, creating a set amount that needs to be paid monthly or yearly. Once that is done everyone who purchases a parcel of land in the housing community is required to pay the CDD fee over the length of the term of repayment.
What Does a CDD Fee Mean to a Home Buyer?
In the case of community development districts that establish a set fee to be repaid by the people who buy a parcel of land (home) in the community, a CDD fee is attached to the purchase of that parcel. Traditionally in areas in Northern Florida community development districts, fees are monthly/yearly payments that typically last around 20, 25 or 30 years… roughly about the length of the home loan that covered the cost of the purchase of the house. When a buyer purchases a parcel of land in the housing community, they agree to the CDD fee attached to it and it basically becomes another small expense attached to the overall costs of buying a home.
Here is a list of communities in Clay County, FL that have Community Development District fees CDD.
Neighborhoods in Orange Park, FL that have CDD fees
Eagle Landing
Oakleaf Plantation
Wilford Preserve
Neighborhoods in Fleming Island, FL that have CDD fees
Eagle Harbor
Fleming Island Plantation
Neighborhoods in Middleburg, FL that have CDD fees
Pine Ridge
Two Creeks
Greyhawk
Neighborhoods in Green Cove Springs, FL that have CDD fees
Magnolia West
Rolling Hills
Cross creek