Buying in Estero and puzzled by those extra line items called CDD or HOA fees? You are not alone. Understanding how these two systems work can help you set a smarter budget and avoid surprises at closing. In this guide, you will learn exactly what each fee covers, how they show up on your tax bill or monthly statements, and what to review before you make an offer. Let’s dive in.

CDD vs HOA basics

What a CDD is

A Community Development District, or CDD, is a local unit of government created under Florida’s Chapter 190 to fund and manage infrastructure such as roads, utilities, stormwater, and community amenities. The district can issue bonds and levy non-ad valorem assessments on properties within its boundaries. Meetings and many records are public under Florida law. You can read the statutory framework in Chapter 190 of the Florida Statutes.

What an HOA is

A Homeowners’ Association, or HOA, is a private association formed by recorded covenants and bylaws to manage common areas, enforce rules, and collect dues. HOAs in Florida operate under their governing documents and Chapter 720 of the Florida Statutes. You can review the state’s HOA framework in Chapter 720 of the Florida Statutes.

How the charges show up

• CDD assessments: These typically appear as non-ad valorem assessments on your Lee County property tax bill. They often include a debt-service portion to repay bonds and an operations and maintenance portion for ongoing services. Learn more about non-ad valorem assessments from the Florida Department of Revenue’s property tax resources and view your tax bill through the Lee County Tax Collector.
• HOA fees: The HOA bills dues monthly, quarterly, or annually. The association can levy special assessments if allowed by its governing documents.

Key difference: CDD assessments are collected with your property taxes, while HOA dues are billed by the association. Both can place liens if unpaid.

What it means for your budget

• CDD costs can be predictable over the life of the bonds, though the amounts can be sizable and last for many years. Newer communities often have higher CDD assessments during build-out.
• HOA dues can rise over time, and special assessments can occur if reserves are low or a major project is needed.
• Lenders usually count recurring CDD assessments and HOA dues in your housing expense, which can affect qualification.

If you prefer predictability, confirming the CDD’s debt-service schedule can help you plan. If you prefer fewer recurring costs, target homes with smaller CDD obligations or communities without CDDs, and review HOA reserves to gauge special assessment risk.

Lenders and resale considerations

Mortgage underwriters typically include CDD and HOA assessments in your debt-to-income review. Large special assessments may need to be paid or escrowed at closing. For a plain-language overview of how fees can affect homebuying budgets, the Consumer Financial Protection Bureau’s homebuying resources are helpful. On resale, quality amenities funded by a CDD can be a plus, but higher annual assessments can influence buyer perception and days on market. Clear disclosure and accurate figures help prevent surprises.

How to check a property in Estero

• Search the parcel on the Lee County Property Appraiser. Look for non-ad valorem assessments and any district name.
• Review the current property tax bill on the Lee County Tax Collector. CDD fees should be listed on the non-ad valorem section.
• Pull recorded documents from the Lee County Clerk of Court & Comptroller. Look for covenants, plats, CDD formation or bond documents, and any liens.
• Ask the seller or agent for HOA and CDD details, then verify with public records and your title company.

Documents to request before you buy

• From the HOA: Declaration of covenants, bylaws, articles, rules, current budget, most recent financials, reserve study if available, meeting minutes, insurance summary, estoppel certificate, and any litigation disclosures.
• From the CDD: Latest adopted budget, engineer’s report if available, bond documents or official statement, most recent minutes, assessment schedule or roll, and district manager contact.
• From public records: Recorded covenants, plats, liens, and any bond or assessment filings via the Clerk; assessment history and taxing authorities via the Property Appraiser.

Review these with your agent, title company, and, if needed, a Florida real estate attorney or tax professional for interpretation.

Questions to ask before you write an offer

• What are the current CDD assessments, and how much is debt service vs operations and maintenance?
• Are there outstanding CDD bonds? What are the maturity dates and allocation method?
• What are the current HOA dues, and what percent of the budget is reserves?
• Are any special assessments approved or under consideration by the HOA or CDD?
• Are there pending lawsuits, deferred maintenance, or large capital projects on the horizon?
• How are assessments billed, collected, and enforced, and what are late fees?

Red flags to watch

• Unusually high CDD line items compared to similar nearby properties.
• HOA budgets with small reserves or a history of repeated special assessments.
• Recent or undisclosed special assessments.
• Ongoing litigation involving the HOA or CDD in public records.
• Unclear transition from developer control to resident control for the HOA or CDD board.

Which option fits your goals?

• If you value new infrastructure and amenities: A CDD community may suit you. Confirm the budget, bond terms, and total annual assessment so the payment fits your comfort zone.
• If you want lower recurring costs: Target properties with low or no CDD assessments and review the HOA’s reserves and maintenance plan to reduce special assessment risk.
• If financing is tight: Share the full HOA and CDD fee schedules with your lender early. Ask whether any large assessments must be addressed at closing.

Your next step

Choosing between a CDD and an HOA is not about right or wrong. It is about fit, budget, and long-term comfort. With the right due diligence, you can enjoy Estero’s amenities and keep your costs predictable.

Ready to compare homes and run the numbers on specific properties? Reach out to Unknown Company to start your Southwest Florida home journey today.

FAQs

What is a CDD in Florida and how is it different from an HOA?

• A CDD is a public unit of government under Chapter 190 that funds infrastructure with non-ad valorem assessments, while an HOA is a private association under Chapter 720 that bills dues and enforces covenants.

How do I see CDD fees on a Lee County tax bill?

• Check the non-ad valorem section of the tax bill through the Lee County Tax Collector; the district name and annual amount are typically listed.

Can CDD or HOA fees affect my mortgage approval?

• Yes. Lenders usually include recurring CDD and HOA assessments in your housing expense; large special assessments may need to be handled at closing.

Are CDD assessments tax deductible for homeowners?

• It depends on the assessment’s purpose and federal tax rules. Treatment can be nuanced, so consult a qualified tax professional.

How long do CDD assessments usually last in Estero communities?

• Debt-service assessments often run for the life of the bonds, which can be decades, while operations and maintenance assessments continue annually.

What documents should I request from an HOA and a CDD before closing?

• From the HOA, request covenants, rules, budget, reserves, financials, minutes, and an estoppel; from the CDD, request the adopted budget, bond documents, minutes, and the assessment schedule.