Are you seeing a “CDD” line on a Viera home’s tax bill and wondering what it means for your budget? You are not alone. Many Space Coast buyers bump into CDDs when shopping new construction or recent resales in Viera and Viera West. In this guide, you will learn what a CDD is, how the fees are calculated and collected, how a CDD differs from an HOA, and the exact questions to ask before you buy. Let’s dive in.
What a CDD is in Viera
A Community Development District, or CDD, is a special-purpose local government created under Florida law to plan, finance, build, and maintain community infrastructure within a defined area. You can read the governing statute by navigating to Chapter 190 within the Florida Statutes website.
In master-planned areas such as Viera and Viera West, developers often use a CDD to fund major infrastructure up front. That can include roads, stormwater systems, landscaping along arterials, lakes, trails, and sometimes recreation facilities. The CDD repays the initial project costs over time through assessments on the parcels that benefit.
A CDD is run by a Board of Supervisors that meets publicly and adopts budgets. Early on, the developer usually controls the board, and control can transition to resident-elected supervisors as homes are sold. Funding typically includes two pieces: long-term debt service from bonds and annual operations and maintenance for ongoing costs.
How CDD fees work
A typical annual CDD assessment has two parts:
- Debt service: The portion that repays bonds used to build long-lived infrastructure. This is usually fixed by the bond schedule and allocated using the district’s assessment methodology.
- Operations and maintenance (O&M): The portion that covers yearly costs to run and maintain CDD-owned systems and amenities. This is set in the district’s annual budget and can change year to year.
The district adopts an assessment roll that sets how much each parcel pays. Allocation methods vary by district and by bond series.
Where fees appear on your tax bill
In Brevard County, CDD assessments usually appear on your property tax bill as non-ad valorem special assessments. They are separate from ad valorem taxes like county, municipal, and school taxes. You can look up parcel details and view prior bills through the Brevard County Property Appraiser and learn about payment processes through the county’s official site.
Many lenders escrow non-ad valorem assessments along with property taxes, but practices vary. Ask your loan officer how they will handle your CDD assessment, since escrow can change your monthly payment.
CDD vs HOA: key differences
Understanding the difference helps you budget accurately and avoid surprises.
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Legal status and powers
- CDD: A unit of local government created under statute. Can issue bonds, levy non-ad valorem assessments, own property, and hold public meetings.
- HOA: A private association created by recorded covenants. Enforces rules and collects dues under its governing documents.
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How fees are billed and collected
- CDD: Typically collected through the county tax bill as non-ad valorem assessments or billed directly by the district.
- HOA: Billed by the association. Nonpayment can lead to association liens under state law and the HOA’s covenants.
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Use of funds
- CDD: Capital infrastructure and district-level maintenance for public-style improvements owned by the district.
- HOA: Neighborhood maintenance, amenity operations, reserves, enforcement, and administration.
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Governance and transparency
- CDD: Public meetings, public budgets, and audits.
- HOA: Private governance with records access governed by state law and the association’s documents.
Practical takeaway: Some Viera neighborhoods have both a CDD and an HOA. You may pay both.
Budgeting tips for Viera buyers
Treat the CDD like any other recurring housing cost and compare apples to apples across neighborhoods and builders.
- Convert the annual CDD amount to a monthly number so you can compare homes and loan options.
- Budget for both parts of the CDD assessment: debt service plus O&M.
- Ask your lender if they will escrow the CDD; if yes, your monthly mortgage payment will include it.
- Remember that you might also have HOA dues on top of the CDD.
New construction: questions to ask
- Is this lot subject to a CDD? If yes, what is the current annual assessment for this lot type?
- Are there any upfront CDD-related fees at closing?
- Are bonds still outstanding? If so, what is the expected payoff schedule?
- When might the board transition from developer to residents?
- Are O&M increases or new special assessments anticipated?
- Will the builder cover any portion of the first-year assessment?
- Is the assessment collected via the county tax bill or billed directly by the district?
Resale: questions to ask
- Can I review the most recent tax bill showing the CDD line item and amount paid?
- Is the CDD assessment current, and are there any special assessments or liens?
- Can I see the latest CDD budget, adopted assessment roll, and recent meeting minutes?
- Has the current owner escrowed the CDD with their mortgage?
Key documents to review
- The parcel’s most recent property tax bill showing any CDD assessments.
- The CDD’s adopted annual budget and assessment resolution.
- CDD meeting minutes and financials; audited statements if available.
- CDD bond documents or the official statement if you need to verify debt and timelines.
- For resales: proof of payment of the latest CDD assessment and the HOA demand/payoff.
- Title commitment to confirm any recorded liens or assessments.
Simple example
Here is a hypothetical to show the math:
- Debt service per home: 2,000 dollars per year
- O&M per home: 600 dollars per year
- Total annual CDD assessment: 2,600 dollars
- Monthly equivalent: about 217 dollars per month
On the Brevard County tax bill, that 2,600 dollars would appear as a non-ad valorem special assessment. Some districts show separate lines for debt service and O&M.
Always verify the figure for the exact lot. Assessment amounts can differ by lot type and by bond series.
How to confirm the numbers
- Look up the parcel and prior bills through the Brevard County Property Appraiser.
- Review payment options and billing practices on the county’s official site.
- For the legal framework of CDDs, navigate to Chapter 190 on the Florida Statutes website.
- Ask the CDD manager for the adopted budget, assessment roll, and any current bond information.
FAQs
What is a CDD in Florida?
- A Community Development District is a special-purpose local government created under Chapter 190 of Florida law to finance and maintain community infrastructure.
Do all Viera homes have CDD fees?
- No. CDDs apply only to parcels included in a district’s assessment roll. Always confirm the parcel’s status through county records and the district.
How do CDD fees show on Brevard tax bills?
- They typically appear as non-ad valorem special assessments, separate from ad valorem taxes. Look for a line labeled with the district name or non-ad valorem description.
How long do CDD assessments last?
- The debt service portion lasts until the bonds are paid off. The O&M portion is ongoing and can change annually based on the district’s budget.
Can my lender escrow CDD assessments?
- Many lenders do escrow them with property taxes, but policies vary by lender and loan program. Ask your loan officer early in the process.
What is the difference between a CDD and an HOA?
- A CDD is a governmental district with public budgeting and the power to levy assessments. An HOA is a private association that collects dues and enforces covenants.
Work with local guidance
Every CDD is structured a little differently, especially across Viera and Viera West’s new construction and resale communities. Before you move forward on a home in Viera, Florida, make sure you know the exact CDD assessment on that property, how your lender treats it, and how your total monthly payment compares to similar Viera homes without a CDD or with lower fees. If you want a simple, side-by-side breakdown while you compare Viera new builds and resales, we can walk you through it.
If you have questions about a specific Viera neighborhood, parcel, or builder, reach out to Nicole DeRoy and Diana Thornton of the DeRoy Thornton Group at Compass. We live and work in this market every day and are known for our deep expertise in Viera CDDs, HOAs, and new construction. Let us be your go-to Viera real estate resource so you can buy with clarity and confidence.
