Ever see a “CDD” line on a Davenport property’s tax bill and wonder what it means for your budget? You are not alone. Many Polk County communities use Community Development Districts to fund and maintain neighborhood infrastructure and amenities, and those assessments can affect your monthly payment and your closing. In this guide, you’ll learn what a CDD is, how the fees work in Davenport, where to find exact amounts for a property, and smart steps to take before you write an offer. Let’s dive in.

What a CDD is

A Community Development District (CDD) is a local, special-purpose unit of government created under Florida law to plan, finance, build, operate, and maintain community infrastructure for a defined area. Typical CDD responsibilities include roads, water and sewer systems, stormwater management, landscaping, and recreation facilities. In Florida, CDDs are authorized by Chapter 190 of the Florida Statutes.

A CDD is governed by a board of supervisors. Early on, the developer often controls the board. Over time, residents may elect supervisors. Because a CDD is a governmental entity, it can issue bonds and levy assessments on properties that benefit from the improvements.

CDD vs HOA: key differences

• CDD = government entity. It can issue bonds and levy assessments that attach to the property. The board holds public meetings and adopts annual budgets.
• HOA = private association. It is governed by covenants and collects dues to fund private services and enforce rules.
• Practical impact. CDD assessments can be long-term and appear on your tax bill. HOA dues are paid to the association, usually monthly or annually. Many Davenport communities have both a CDD and an HOA, each with a different purpose.

How CDD fees work in Polk County

CDDs typically issue municipal-style bonds to pay upfront costs for infrastructure and amenities. Homeowners then pay annual assessments that cover both debt service on those bonds and the district’s operations and maintenance.

• Two parts to most assessments. Debt service (to repay bonds) and operations and maintenance (O&M) for annual costs like landscaping, insurance, and administration.
• How you are billed. In Polk County, CDD assessments often appear on the county tax bill as non-ad valorem assessments or under the district’s name. Some districts bill directly, annually or semiannually. Always check the specific district’s practice.
• Who pays and for how long. The property owner of record as of the assessment roll date is responsible. Debt service assessments usually continue until the bonds are fully repaid. Terms commonly run 20 to 40 years. There is no standard sunset date, so you must review the district’s bond and budget documents to estimate duration.
• How much. Amounts vary by community, amenities, bond size, and lot type. In Florida, you might see several hundred dollars per year up to several thousand per year. For a Davenport address, verify the exact parcel amount with district documents or Polk County records.

Where to see it on the tax bill

Review the Polk County tax bill for line items marked “non-ad valorem assessment” or a line labeled with the district’s name. That is often the clearest sign a property is in a CDD and the amount assessed for the current year.

How CDD fees affect your loan and closing

CDD assessments are part of your recurring housing cost. Lenders and underwriters account for them when they calculate your qualifying ratios and monthly payment.

• Affordability. The annual assessment increases your monthly carrying cost, similar to property taxes or HOA dues. Ask your lender exactly how they will treat the CDD in underwriting.
• Escrow. Some lenders require CDD assessments to be escrowed with your property taxes and insurance. Others allow you to pay directly. Policies vary by lender.
• Title and closing. Unpaid CDD assessments can be liens. Title companies typically request a CDD assessment or payoff search to identify any amounts due. Current-year assessments are usually prorated between buyer and seller according to the contract, but long-term debt service assessments remain attached to the property. You will assume those after closing.
• Prepayment. Whether you can prepay remaining debt service depends on the district’s bond covenants. Many bond issues restrict voluntary prepayment. Do not assume you can eliminate the assessment by paying a balance without confirmation from the district or bond trustee.

Real-world scenarios to expect

• If the seller has not paid the current year’s CDD assessment, the title company may require payment or an escrow at closing.
• Your lender may ask for the district’s current budget or assessment schedule to underwrite the loan.
• If a district is considering new bonds or increased O&M costs, your future assessments could change. Meeting minutes and budgets will show this.

How to research a Davenport property

Start with the listing and disclosures, then use Polk County and state resources to confirm details.

1. MLS listing and seller disclosures. Ask the listing agent for the district name and the latest CDD disclosure packet, if available.
2. Polk County Property Appraiser. Look up the parcel by address or ID and review the tax bill lines for non-ad valorem assessments and the district name.
3. Polk County Tax Collector. Confirm how and when the assessment is billed and whether it appears on the county tax bill.
4. Polk County Clerk/Recorder. Search official records for bond documents, assessment resolutions, and subdivision plats tied to the CDD.
5. Florida Special Districts database. Identify the district’s legal name, contacts, and management or engineering firm.
6. District management company. Request the current budget, assessment roll for the specific parcel, and any bond offering statements or redemption provisions.
7. Title company. Ask for a CDD assessment or payoff letter to confirm unpaid amounts and whether prepayment is allowed.

Documents to request

• Current-year assessment roll and the exact bill amount for the parcel
• Most recent annual budget showing O&M and debt service components
• Official bond documents or offering statement with term, interest, and redemption rules
• Meeting agendas and minutes for planned projects or new bonds
• Any seller or developer CDD disclosures

Buyer checklist for Davenport

Use this quick plan before you make an offer on a home with a CDD.

Before you write an offer

• Ask for the district name, current annual amount, whether the charge is O&M or debt service, and whether it is escrowed.
• Add the annual assessment to your budget and debt-to-income calculations to see the true monthly cost.
• Confirm with your lender how they will treat the CDD and whether they require escrow.

During due diligence

• Obtain the district’s most recent budget and the parcel’s line-item assessment amount.
• Request a CDD assessment or payoff letter from the district or title company to identify any unpaid amounts.
• Review bond documents to estimate how long the debt service portion will remain.

At contract and closing

• Specify who pays current-year assessments and how they will be prorated.
• Consider requesting a seller credit if there are significant assessments due or a newly proposed assessment.
• Confirm your title commitment addresses special assessment liens and that any required payoffs or escrows are handled.

Red flags to watch

• Large or quickly rising O&M assessments or newly proposed bonds for the district
• Missing or unclear district information in the listing or disclosures
• A developer-controlled board with no recent resident elections, especially in early phases of a community

Seller tips to keep your deal on track

If you are selling a Davenport home in a CDD, proactive disclosure helps you avoid surprises.

• Provide the district name, current-year assessment, and recent budgets or disclosure documents early.
• Coordinate with your title company and the district to obtain any needed payoff or assessment letters well before closing.
• Keep copies of meeting minutes or notices about upcoming assessments to answer buyer questions quickly.

Davenport insights: why CDDs are common

Davenport and greater Polk County continue to add new neighborhoods with modern infrastructure and amenities. CDDs allow those improvements to be funded up front through bonds, with property owners paying annual assessments over time. Amenity-rich or resort-style communities often have higher assessments because there is more to build and maintain. That is why it is essential to verify the exact parcel’s assessment, the budget, and the expected term of the debt service portion.

Work with a local guide

Understanding CDDs can help you set a smart budget and write a stronger offer. If you want help confirming a district name, reading a budget, or coordinating a title assessment search, you can lean on a local team that handles these steps every week. For clear guidance on a specific Davenport address, connect with Team Hubbert. We will help you verify the numbers, plan for underwriting, and navigate negotiations with confidence.

FAQs

What is a CDD in Davenport?

• A Community Development District is a local government entity that finances, builds, and maintains neighborhood infrastructure and amenities, then funds those costs through annual assessments on benefiting properties.

How long do CDD assessments last?

• Debt service assessments usually continue until bonds are repaid, commonly 20 to 40 years, while O&M assessments recur annually for ongoing maintenance as long as the district operates.

Where do I find my property’s CDD amount?

• Check the Polk County Property Appraiser and Tax Collector records for non-ad valorem assessments, then request the district’s assessment roll and budget for the exact parcel amount.

Do CDD fees affect mortgage approval?

• Yes. Lenders treat recurring CDD assessments as part of your housing expense and include them in qualifying ratios; some lenders also require escrow.

Can I pay off my CDD early?

• It depends on the district’s bond covenants and Florida law; many bond issues restrict voluntary prepayment, so you must confirm with the district or bond trustee before planning to prepay.