What are CDD fees and which Valrico neighborhoods have them?

CDD fees are annual assessments — typically $1,000 to $2,500 per year — that fund infrastructure and amenities in newer planned communities. In the Valrico area, FishHawk Ranch is the biggest CDD community, but several other newer developments also carry them. Older, established Valrico neighborhoods generally have no CDD.

This is the fee that surprises buyers more than any other. Here's what you need to know before you make an offer.

What is a CDD?

A Community Development District (CDD) is a special taxing district created by the state of Florida. Developers establish CDDs to finance the construction of infrastructure in new communities — roads, drainage, utilities, parks, pools, clubhouses, and common areas.

The cost of building that infrastructure gets passed to homeowners through two types of CDD assessments:

1. Bond (debt service) assessment

This pays off the bonds that financed the original construction. Think of it like a mortgage on the community's infrastructure. This portion has a set payoff date — typically 20-30 years from when the community was built. Once the bonds are paid off, this portion of your CDD fee goes away.

2. Operations & Maintenance (O&M) assessment

This covers the ongoing cost of maintaining the community's shared infrastructure and amenities — landscaping, stormwater systems, pools, clubhouses, trails, and common areas. This portion does NOT go away. It can also increase annually based on the community's budget.

CDD fees are NOT optional

CDD assessments appear on your property tax bill as a non-ad valorem assessment. They're legally required. You can't opt out, negotiate them down, or avoid them by paying cash for your home. If the community has a CDD, you pay it. Period.

The good news: because CDDs are on your tax bill, they're typically escrowed into your monthly mortgage payment. And some portion may be tax-deductible (consult your accountant).

Valrico-area neighborhoods WITH CDD fees

FishHawk Ranch

CDD fee range: $1,000-$2,500/year (varies by section)

FishHawk is the largest CDD community in the Valrico area. The FishHawk Ranch CDD was formed in 2019 as a merger of three separate CDDs within the master-planned community. Fees cover:

• Stormwater management and wetland maintenance
• Entry monumentation and landscaping
• Neighborhood parks, trails, and recreational amenities
• Common area maintenance

FishHawk homes also have HOA dues on top of CDD fees. Combined, residents may pay $3,000-$5,000+ per year in HOA + CDD fees.

Alafia (newer sections)

CDD fee range: Varies by section

Parts of the Alafia community east of Valrico have CDD assessments. As newer sections are built, they may carry different CDD bond amounts.

Newer subdivisions along Durant Road / eastern Valrico

Some of the newer developments east of the core Valrico area carry CDD fees. These are typically smaller CDDs created for individual subdivisions.

Crossings at FishHawk, Hawkstone, and other FishHawk-adjacent communities

Various newer communities near FishHawk may have their own CDDs or be part of the broader FishHawk CDD structure. Check each community individually.

Valrico neighborhoods WITHOUT CDD fees

The good news for budget-conscious buyers: most established Valrico neighborhoods do NOT have CDD fees.

• Diamond Hill — No CDD
• Bloomingdale — No CDD (some sections have HOA, some don't)
• Buckhorn Estates — No CDD
• Buckhorn Preserve — No CDD
• Canterbury Oaks — No CDD
• River Hills — No CDD (does have HOA)
• Valrico Groves — No CDD
• Brentwood Hills — No CDD
• Heritage Crest — No CDD
• Wellington — No CDD
• Most older Valrico subdivisions — No CDD

Many of these neighborhoods were built before the CDD model became common in Florida (roughly 1990s and earlier). They may have HOA dues, but those are typically much lower than CDD + HOA combinations in newer communities.

How CDD fees affect your monthly payment

Here's what the real impact looks like on a monthly basis:

Home with NO CDD

| Item | Monthly | |---|---| | Mortgage (P&I) | $2,300 | | Property taxes | $550 | | Insurance | $350 | | HOA | $50 | | Total | $3,250 |

Home with CDD ($2,000/year)

| Item | Monthly | |---|---| | Mortgage (P&I) | $2,300 | | Property taxes | $550 | | Insurance | $350 | | HOA | $100 | | CDD | $167 | | Total | $3,467 |

That $217/month difference adds up to $2,600 per year. Over a 10-year stay, that's $26,000 in CDD fees — money that does not build equity in your home.

CDD vs. HOA — what's the difference?

| | CDD | HOA | |---|---|---| | Created by | State of Florida | Developer or homeowners | | Appears on | Property tax bill | Separate quarterly/monthly bill | | Mandatory? | Yes, always | Yes, if community has one | | Can increase? | O&M portion can increase annually | Can increase by board vote | | Goes away? | Bond portion ends when paid off (20-30 yrs) | No | | Covers | Infrastructure, stormwater, common areas | Rules enforcement, amenities, common areas | | Tax deductible? | Possibly (consult CPA) | Generally no |

In FishHawk and similar communities, you pay BOTH CDD and HOA — they serve different functions.

How to find out if a property has CDD fees

1. Check the property listing — CDD fees should be disclosed in the MLS listing
2. Look at the property tax bill — Search on hillstaxfl.gov. CDD assessments appear as non-ad valorem items
3. Ask the listing agent — They're required to disclose CDD information
4. Search the CDD's website — FishHawk Ranch CDD: fishhawkranchcdd.org
5. Ask your buyer's agent — Any competent REALTOR should flag CDD fees before you make an offer

Should you avoid CDD communities?

Not necessarily. CDD communities often have amenities that non-CDD neighborhoods don't — pools, clubhouses, parks, maintained trails, and manicured common areas. You're paying for a lifestyle.

Buy in a CDD community if:

• You want resort-style amenities (pools, fitness centers, parks)
• The total monthly payment still fits your budget
• You value a maintained, master-planned community feel
• The home's purchase price reflects the CDD cost (it should be somewhat lower)

Avoid CDD communities if:

• You're stretching your budget and every dollar matters
• You want to minimize monthly obligations
• You prefer the character of established neighborhoods
• You don't use community amenities

FAQ

Do CDD fees ever go away?

The bond (debt service) portion goes away when the bonds are paid off, typically 20-30 years after the community was established. The Operations & Maintenance portion does not go away. In FishHawk, the O&M portion alone runs about $1,000/year.

Can CDD fees increase?

Yes. The O&M portion increases based on the community's annual budget. Bond payments are typically fixed. In practice, CDD fees tend to increase modestly each year (2-5%).

Are CDD fees tax deductible?

Potentially. Because CDDs are government entities and the assessment appears on your tax bill, some CPAs classify the assessment as a deductible property tax. Others disagree. Consult your specific tax advisor.

Does the seller pay off the CDD bond at closing?

No. Unlike a mortgage, the CDD bond obligation stays with the property and transfers to the new owner. The seller does not pay it off at closing. You're taking on whatever bond balance remains.

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Barrett Henry is a REALTOR and Broker Associate with RE/MAX Collective. He flags CDD fees on every listing and helps buyers understand the full cost of ownership — not just the purchase price.

Have questions about CDD fees on a specific Valrico property? I pull complete cost breakdowns before my buyers make offers. Call or text (813) 733-7907 or visit nowtb.com.