Have you seen “CDD” on a Reunion property’s tax bill and wondered what it means for your budget? You’re not alone. Community Development District fees are common in resort-style communities in Osceola County, and they can be a meaningful part of your carrying costs. In this guide, you’ll learn what CDDs are, what they fund in Reunion, how they show up on your tax bill, and how to estimate your monthly costs with confidence. Let’s dive in.
What a CDD is in Reunion
A Community Development District is a special-purpose local government created under Florida law (Chapter 190) to plan, finance, build, and maintain community infrastructure and amenities. Developers use CDDs to issue bonds that fund roads, water, sewer, stormwater systems, landscaping, and recreation facilities.
Reunion is a resort-scale, master-planned area near Orlando. Communities like this often rely on CDDs because they include extensive amenities and large amounts of infrastructure. Reunion has historically included multiple special districts and assessment structures. Always verify which district or assessments apply to the specific parcel you’re considering.
What CDD fees fund
CDD assessments pay for infrastructure and long-term upkeep that benefit the community. In Reunion, that typically includes:
- Capital infrastructure such as roads, water, sewer, stormwater, street lighting, sidewalks, and lift stations.
- Amenities and recreation infrastructure like community centers, pools, fitness facilities, golf course infrastructure, parking, and common-area landscaping.
- Ongoing operation and maintenance of district-owned assets.
- Bond debt service that repays the principal and interest on bonds issued to build community improvements.
How CDD assessments are structured
You’ll usually see two components when you review CDD assessments:
- Debt service assessment. This pays the principal and interest on CDD bonds. It follows a fixed payment schedule set by bond documents and can vary by unit type or classification.
- O&M assessment. This covers the district’s annual operating costs. The CDD Board of Supervisors reviews and adopts the O&M budget each year, so this amount can change annually.
The CDD Board adopts the annual budget and assessment roll at public meetings. Once adopted, the district certifies the assessment roll to the county for collection.
Priority, liens, and prepayment
CDD assessments are non-ad valorem and are collected on your county tax bill. If they are unpaid, they become a lien on the property and can trigger collection actions under Florida law. In some districts, you may be able to prepay the remaining capital (debt service) portion to eliminate future debt service charges. Whether prepayment is allowed depends on the bond documents and district policy. Special one-time assessments are also possible if needed for repairs or shortfalls.
How CDD fees appear on Osceola tax bills
On an Osceola County tax bill, CDD assessments appear under “non-ad valorem assessments” or “special assessments.” You’ll see the district name and the amount for your parcel. Some parcels show more than one line item if multiple districts or assessment types apply.
The Osceola County Tax Collector bills and collects CDD assessments along with property taxes. The county’s discount schedule and due dates for each tax year apply to the entire bill. At closing, the seller’s most recent tax bill is typically provided, and any unpaid assessments are cleared or prorated according to the contract.
Lenders may require you to escrow CDD assessments, which means the estimated annual total is collected monthly with your mortgage payment. If your lender does not escrow, you’ll need to budget for a single annual payment when the tax bill is due.
To verify the current amount for a specific parcel, use these sources:
- Osceola County Tax Collector for current tax bills and payment details.
- Osceola County Property Appraiser for parcel data and references to assessments.
- Reunion CDD official documents for adopted budgets, assessment rolls, meeting minutes, and bond records.
Estimate your monthly CDD cost
If you want a quick, reliable estimate of your monthly costs, follow this process.
Gather the right documents
- Ask the seller for the most recent Osceola County tax bill and HOA disclosure. These usually show last year’s CDD amounts.
- Look up the parcel on the Tax Collector or Property Appraiser site to confirm current non-ad valorem lines.
- Retrieve the CDD’s latest adopted budget and assessment roll for updates to O&M.
Break down the annual number
- Annual CDD assessment = debt service portion + O&M portion.
- Monthly estimate = annual total divided by 12.
- If your lender escrows, this monthly estimate may be added to your mortgage payment.
Use a simple calculation
- If the tax bill shows a single CDD line for $X, your monthly estimate is X ÷ 12.
- If there are multiple CDD lines, add them together and divide by 12.
- If you don’t have the latest bill, use the district’s adopted assessment roll and current budget to estimate next year’s amount. Keep in mind O&M can change annually.
Cross-check with comparable parcels
- Review recent Reunion sales and their prior-year tax bills on county sites to see what similar properties paid.
- Ask the listing agent or seller for the latest bill to confirm parcel-specific charges.
Watch for variables
- Different property types (single-family, condo, villa) often have different assessment levels.
- Developer-owned or newly platted parcels may be treated differently in the roll.
- Bond refinancing, special assessments, or budget changes discussed in CDD board minutes can affect future amounts.
- If the lender escrows taxes and assessments, your monthly mortgage payment may include a cushion for CDD.
Buyer considerations and qualifying
CDD assessments are recurring obligations that matter for affordability and loan approval. Even if you plan to pay the tax bill annually, your lender may include a prorated monthly amount when underwriting your loan. Ask your lender whether CDD assessments will be escrowed and how they factor into your debt-to-income ratio.
On resale, higher carrying costs can influence a buyer’s decision. Clear disclosure, accurate numbers, and an explanation of what the CDD funds can help position your property competitively. Many buyers value the infrastructure and amenities that CDDs support, so context matters.
Remember, O&M assessments can rise through the annual budget process, and special assessments are possible in some situations. Unpaid CDD assessments are a lien, and sellers typically must address them at closing.
Reunion-specific tips for buyers
- Verify districts. Reunion has used multiple special districts and structures historically. Confirm exactly which district(s) and assessment classes apply to your parcel.
- Match the property type. Single-family homes, condos, and villas may have different assessment levels. Check the certified assessment roll by unit classification.
- Align with your use. If you’re evaluating a property for personal use or investment, include CDD charges in your full operating budget alongside taxes, insurance, HOA dues, utilities, and management.
- Check recent board activity. Review adopted budgets and meeting minutes for any proposed O&M changes, refinancing discussions, or special assessments that could affect next year’s bill.
When CDD payments are due
CDD assessments are collected with your annual Osceola County property tax bill. If you escrow with your lender, you’ll effectively pay one-twelfth each month. If you don’t escrow, set aside funds to make the lump-sum payment when the county’s tax bill comes due.
Due diligence checklist
Use this step-by-step list to verify costs before you make an offer:
- Get the seller’s most recent Osceola County tax bill and HOA disclosures.
- Look up the parcel on the Tax Collector and Property Appraiser sites to confirm current non-ad valorem assessments.
- Download the CDD’s adopted budget and the latest certified assessment roll; review bond documents if available.
- Read recent CDD board meeting minutes for budget adjustments, special assessments, or refinancing updates.
- Ask your lender how CDD assessments are handled for qualifying and whether escrow is required.
- Confirm with your title company or closing agent how the current year’s CDD charges will be paid or prorated at closing.
- Contact the district manager or clerk with questions about prepayment options, assessment classifications, or schedules.
Work with a local guide
Understanding CDDs is a key part of buying in Reunion. When you have clear numbers and context, you can compare properties fairly and avoid surprises during underwriting or closing. If you want help pulling tax bills, reading a CDD budget, or building a full monthly cost picture, connect with a local advisor who works these numbers every day. For one-on-one guidance and bilingual support, reach out to Julimar Barreiro.
FAQs
Are CDD fees the same as HOA dues in Reunion?
- No. CDD fees are non-ad valorem governmental assessments used to repay bond debt and fund district operations, while HOA dues are private, contractual fees for HOA services and governance.
How do lenders treat CDD fees during mortgage qualifying?
- Policies vary by lender, but many include a prorated monthly amount for underwriting and may require escrow if the annual assessment is large.
Can CDD fees in Reunion increase over time?
- Yes. Debt service is typically fixed by the bond schedule, but O&M assessments can change each year through the budget process, and special assessments may be levied when needed.
Where will CDD charges appear at closing?
- CDD payoffs or prorations usually appear on the closing statement; any unpaid assessments are typically addressed before or at closing.
Can you prepay the CDD debt portion in Reunion?
- Possibly. Prepayment depends on the district’s bond documents and policy; contact the district manager or review the bond materials to confirm if and how prepayment is allowed.
