Are you comparing two great homes in Tradition and wondering why one has a higher monthly cost even with the same list price? If CDD fees are the mystery line item, you are not alone. Many buyers see them on the St. Lucie County tax bill and are unsure how they work or how long they last. In this guide, you will learn what a CDD is, how assessments are set and collected, how to estimate the monthly impact, and what to ask before you write an offer. Let’s dive in.
What a CDD is in Tradition
A Community Development District, or CDD, is a local, special-purpose governmental unit created under Florida Statutes Chapter 190. In master-planned areas like Tradition, a CDD plans, finances, builds, and maintains public-style infrastructure such as roads, water management, sewer, stormwater, landscaping, parks, and recreational amenities.
To fund these improvements, a CDD can issue bonds and levy assessments to repay the bonds and cover annual operations and maintenance. CDDs operate as public bodies, which means they hold public meetings, adopt budgets and assessment rolls, and keep public records. In many master plans, the developer initially controls the CDD board, then control transitions to resident-elected members after certain milestones.
A key point for buyers: CDD bond obligations often last for decades, based on the bond term and amortization schedule. The assessment is tied to the property, not the owner, so it continues with future owners unless prepaid under the governing documents.
How CDD assessments work
Two assessment types
- Bonded or capital assessments: These repay the bonds used to build infrastructure. The amount for each parcel follows the assessment methodology and the bond amortization schedule set when the bonds were issued.
- Operations and maintenance (O&M) assessments: These fund the district’s annual budget for items like landscaping, amenity upkeep, insurance, utilities for common areas, and management.
Where to find your numbers
- CDD adopted budget and certified assessment roll for the current year show the parcel’s O&M and capital assessments and how often they are billed.
- Bond documents, the Engineer’s Report, and the Assessment Methodology explain how capital assessments are allocated and whether prepayment is permitted.
- Public records, including CDD meeting agendas and minutes, provide insight on upcoming projects, potential special assessments, and any proposed changes to O&M.
How they are billed and collected
- Most CDD assessments appear as non-ad valorem line items on the St. Lucie County property tax bill. Some districts bill directly through a management company instead of the tax bill.
- The tax bill shows whether CDD assessments are billed annually or semi-annually. If the district bills directly, you will receive an invoice from the district or manager.
- Many lenders require escrow for CDD assessments. If not escrowed, lenders may treat the recurring assessment as a monthly debt for qualification, which can affect debt-to-income ratios.
Convert to a monthly cost
- Add the parcel’s annual capital and O&M assessments, then divide by 12. This gives you the monthly comparison number to use alongside your mortgage, taxes, insurance, and HOA dues.
- If the CDD bills semi-annually or directly, still divide the total annual amount by 12 to compare apples to apples across different homes and communities.
Expect some variability
- Bond payments can be fixed by schedule, but assessments differ by phase or plat. Newer phases that benefited from recent capital projects may carry higher capital assessments. Parcels where bonds have been retired may have lower or no capital component.
CDD vs HOA in Tradition
What each covers
- CDD: Governmental unit that funds public-style infrastructure and repays bond debt. It levies mandatory non-ad valorem assessments and can issue bonds.
- HOA: Private association that enforces covenants, manages design review, and funds private maintenance and services through dues and special assessments.
Governance and transparency
- CDD boards hold public meetings, adopt public budgets, and maintain public records.
- HOAs operate under recorded covenants and Florida HOA statutes, with their own meeting and disclosure requirements.
Why it matters for your budget
- Both CDD and HOA charges are typically mandatory for properties that are subject to them. Some amenities may be funded by the CDD, the HOA, or a combination. You should confirm who maintains roads, street lighting, medians, pools, clubhouses, staffing, and security for the specific subdivision and phase you are considering.
What to review before you offer
Use this checklist to confirm the true monthly cost and long-term obligations:
- Current year St. Lucie County property tax statement for the parcel, showing any CDD line items and billed amounts.
- CDD adopted budget and certified assessment roll for the parcel, detailing O&M and capital components.
- Bond documents summary and amortization or payoff schedule to see how long capital assessments will continue.
- Engineer’s Report and Assessment Methodology for allocation details across lots.
- Recent CDD agendas and meeting minutes for planned projects, potential special assessments, or O&M changes.
- HOA budget and CC&Rs to confirm what the HOA covers and what your dues fund.
- Seller disclosures on any prepaid assessments, pending special assessments, or transfer fees.
Smart questions to ask
- Is there an active CDD for this parcel, and what is the total annual assessment by component?
- Is the assessment on the county tax bill or billed directly by the district?
- How often is it billed, and what are the late fees or penalties?
- Will my lender require escrow, and if not, how will it be counted for qualifying?
- How many years remain on the bond debt? Is future issuance or a special assessment being discussed?
- Which amenities and maintenance items are funded by the CDD versus the HOA for this subdivision and phase?
- Has the seller prepaid any portion of the capital assessment, and will that benefit transfer with the sale?
- Are there planned capital projects or budget changes that could increase O&M assessments?
How fees affect affordability
Long-term CDD assessments can add materially to your monthly housing cost even if HOA dues look low. Lender treatment also matters. Some lenders escrow the assessment; others count it as a monthly debt that affects your debt-to-income ratio and buying power. To avoid surprises, include both HOA dues and CDD assessments when you compare homes and plan your monthly budget.
CDD assessments can also influence resale. Buyers who understand the line items are more comfortable moving forward. Clear disclosure and upfront explanation reduce the risk of last-minute issues.
Contract tips and negotiation points
- Require written confirmation of the current annual assessment amounts and whether any prepayment has been made.
- Build in time to verify assessments for underwriting and consider an appraisal contingency.
- Ask for prorations for any directly billed assessments or credits if the seller prepaid an amount that benefits you after closing.
Where to verify in St. Lucie County
- St. Lucie County Property Appraiser for parcel records and identifiers.
- St. Lucie County Tax Collector for the current tax bill and any non-ad valorem CDD line items.
- Tradition CDD websites or district management companies for adopted budgets, assessment rolls, agendas, and minutes.
- The CDD manager for billing method, payoff options, and clarification on responsibilities.
- Your title company or closing agent for outstanding assessments, liens, and how they will be handled at closing.
- The listing agent and seller disclosures for the latest tax bill, HOA details, and any payoff or proration documentation.
Watch for red flags
- Newly announced special assessments or capital projects without a clear funding source beyond higher assessments.
- Unclear division of responsibilities between the CDD and HOA for amenities or roadway maintenance.
- Multiple overlapping districts on a single parcel without clear disclosure of the total assessment burden.
- Missing or outdated public records for budgets or assessment rolls. If documents are not current, contact the district manager directly.
Bottom line for Tradition buyers
A CDD is a government-style layer that funds key infrastructure in Tradition and is separate from your HOA dues. To compare homes accurately, gather the parcel’s total annual CDD amount, add HOA dues, and divide by 12 for a true monthly view. Confirm how your lender will treat the assessment, and verify details through county records and the district’s public documents before you commit.
If you want a clear, step-by-step plan for your specific Tradition shortlist, reach out to the local team that knows these communities inside and out. The concierge guidance you need is a call away with Shane & Hatfield.
FAQs
What is a CDD fee on a Tradition home?
- A CDD fee is a mandatory non-ad valorem assessment that funds infrastructure and operations for a Community Development District serving your parcel, separate from HOA dues.
How long do CDD assessments typically last?
- Capital assessments often follow a bond amortization schedule that can span decades, while O&M assessments recur annually for as long as the district operates.
How can I see if a parcel has a CDD in St. Lucie County?
- Check the current county tax bill for non-ad valorem CDD line items and request the CDD’s adopted budget and assessment roll for the parcel.
Do CDD fees replace HOA dues in Tradition?
- No. A CDD and an HOA serve different roles; many homes have both, so you should budget for both assessments and HOA dues if applicable.
Can I prepay or pay off the CDD bond early?
- Prepayment rights and terms depend on the bond documents and district policies; verify payoff options and any transfer of prepaid amounts with the district manager and title company.
Will lenders escrow CDD assessments?
- Many lenders do escrow CDD assessments; if not, they may count the assessment as a monthly debt, which can affect your debt-to-income ratio for qualifying.
