What is a CDD (Community Development District) Fee?

What is a CDD Fee? The Community Development District fee imposed by the developer or builder of a neighborhood or subdivision to finance the cost of amenities in a neighborhood. These amenities and community improvements would not be provided without funding from CDD fees. Rather than increase the home’s selling price to cover the common amenities, the developer borrows money from the municipality, so the CDD fee that is paid by the homeowner is basically a repayment of a loan the developer received from the municipality. CDD fees are not to be confused with Homeowners Association fees. CDD fees are paid in addition to HOA fees, if HOA fees exist.