CDD Fees? What are they and why do I want them?
CDD fees are Community Development District fees imposed by developers to cover the cost of improvements (amenities) that would not be possible without raising home price unrealistically. Instead of building the cost of these features into the home price, they finance these amenities separately. Basically, they borrow money from the county and the residents pay it back over an extended period of time - usually 30 years.
A little history.....In the old days, towns used to provide parks, trails, picnic areas, basketball courts, tennis courts, etc for the good of the community. These improvements were paid for by the taxes or special fund raising campaigns. Now, instead of raising taxes across the county to pay for parks, trails, courts, etc in certain locations - some counties allow developers to impose a CDD fee which is paid by the residents who use the improvements. CDD's allow the tax base to stay lower and residents don't have to pay for improvements they don't want.
The best part about CDD fees is that they are tax deductible - just like the rest of your property taxes. Unlike Homeowners Association Fees (HOA) they are paid to the tax collector's office and will make a difference on your income taxes. If you like extensive landscaping, fountains, parks, trails, tennis courts, swimming pools, fitness centers, etc. choose a heavily amenitied community. The asethetic value of a home in one of these beautiful communities will allow you to maintain better property values and will ensure that homeowners do not decrease your property value by neglecting their properties.