Shopping for a home in Horizon West and seeing “CDD” on the tax bill? You are not alone. Community Development District assessments can be confusing at first, especially if you are comparing new construction and resales across different villages. In this guide, you will learn what CDD fees fund, how they show up on Orange County tax bills, what to expect locally, and how to find the exact amount for any property you are considering. Let’s dive in.
CDDs in Florida: the basics
A Community Development District is a special-purpose local government in Florida created under Chapter 190 of the Florida Statutes. A CDD plans, finances, builds, and operates public infrastructure and amenities within a development. That can include roads, water and sewer systems, lakes and stormwater facilities, landscaping, parks, pools, and clubhouses.
CDDs fund this work by issuing bonds for large capital projects and by collecting assessments from property owners. You will typically see two distinct assessment types tied to a CDD.
Bond assessments (debt service)
Bond assessments repay the bonds the district issued to build the community’s infrastructure and key amenities. These amounts are structured to cover the annual debt service and are usually set by the bond documents and the approved assessment roll. The way the cost is shared across properties follows the district’s assessment methodology and bond covenants.
O&M assessments (operations and maintenance)
O&M assessments pay for ongoing services that keep the community running. Think landscape and irrigation, lake and pump maintenance, amenity staffing, security, insurance, and utilities paid by the CDD. The district adopts a new budget each year, so O&M assessments can change annually.
How CDD fees appear on bills
In Orange County, CDD assessments normally appear on your annual property tax bill as non-ad valorem assessments. They are listed separately from ad valorem property taxes. You will typically see a line item with the CDD name and, in many cases, separate lines for bond and O&M components.
Who pays and proration at closing
By law, the owner of record on January 1 of the tax year is responsible for that year’s non-ad valorem assessments. In practice, buyers and sellers usually negotiate prorations or credits on the closing statement. Your closing agent will reflect the agreed proration, but the statutory responsibility still traces back to the January 1 owner.
Escrows and monthly payments
Many mortgage lenders treat CDD assessments as recurring housing expenses and require an escrow, similar to property taxes. If your lender escrows, a portion of the CDD assessment will be included in your monthly mortgage payment. If not, you will pay the assessment when the tax bill comes due.
Late payments and liens
When CDD assessments are collected on the tax roll and remain unpaid, they generally become a lien and follow the county’s collection processes. The exact lien mechanics and priority depend on how the assessment is levied and the governing statutes.
Horizon West patterns to expect
Horizon West spans several villages and phases. Assessment amounts vary widely by community, amenity level, and build stage. Some villages carry higher bond obligations for extensive amenities and private infrastructure. Others have modest district costs or no CDD at all.
The combined CDD burden for a single-family home in Florida master-planned communities often ranges from a few hundred dollars per year to several thousand dollars per year. Amenity-rich areas with clubhouses, gated entries, lakes, and multiple parks tend toward the higher end. Townhomes, condos, and single-family homes may have different assessment classes, so unit type matters.
Build-out status also affects per-unit costs. If a district is early in development, debt can be spread over fewer occupied parcels, which can raise the assessment per unit. Over time, as more homes are added to the assessment roll or bonds are refinanced or paid down, the dynamic can change.
Find and verify a home’s CDD
Because amounts change as budgets and bonds evolve, the only reliable way to know the current number is to check the public records for the specific parcel. Use this step-by-step process when you evaluate a Horizon West property:
- Obtain the latest tax bill
- Search the Orange County Property Appraiser or Tax Collector by parcel ID or address. On the bill, look for non-ad valorem lines that show the district name and annual amount.
- Identify the district and parcel class
- Confirm which CDD the property falls under and whether the parcel is classified as single-family, townhome, condo, or another class. That classification affects the assessment.
- Read the adopted budget and assessment roll
- Each CDD adopts an annual budget for O&M and certifies an assessment roll. These are public records that show how much each unit type is expected to pay.
- Review bond documents if applicable
- Official statements, bond indentures, and assessment methodology reports explain how debt is apportioned and when bonds mature. This helps you understand the debt service portion and its timeline.
- Check long-range plans and meeting minutes
- Look for any planned capital projects, upcoming bond issues or refinancings, or service changes that could affect future O&M or debt assessments.
- Ask the seller, builder, and listing agent
- Request the last two years of tax bills, the CDD’s current budget, and any homeowner-facing disclosures. For new construction, ask the builder for a sample CDD schedule and whether any assessments are being subsidized for a period.
- For investors, model the impact
- Treat CDD assessments as recurring ownership expenses. Fold them into NOI, cash-on-cash, and debt coverage calculations.
Compare costs across listings
When you compare properties, include the CDD in your monthly housing or investment budget. A simple way to do this is to add the annual CDD, annual HOA, and annual property taxes, then divide by 12 for a monthly estimate. Build that figure into your affordability or pro forma analysis.
Here is a simple illustration with hypothetical numbers. If a home’s CDD totals $2,400 per year, that equals about $200 per month. When two otherwise similar homes are the same price, the one with a $2,400 annual CDD has an additional $200 per month in recurring cost that you should account for.
Buyer and investor checklist
Use this quick checklist to stay organized when you tour listings in Horizon West.
Before making an offer:
- Obtain last year’s tax bill and confirm the current CDD amount.
- Ask for the CDD’s adopted budget and assessment roll for the current fiscal year.
- Confirm your unit type and its assessment class (single-family, townhome, condo).
- Ask whether the developer is paying any assessments for a limited time and when that ends.
Prior to closing:
- Confirm how current-year assessments will be prorated on the closing statement.
- Check your lender’s escrow requirements for CDD and other non-ad valorem assessments.
- Review recent CDD board minutes and notices for upcoming bonds, special assessments, or service changes.
For investors:
- Include CDD assessments in NOI and cap rate calculations.
- Recheck returns if the assessment meaningfully changes monthly cash flow or debt coverage.
Smart planning and negotiation tips
Ask early about any builder incentives or developer-paid assessments on new homes. Clarify whether your lender will escrow CDD assessments so your monthly payment estimate is accurate. Verify how prorations will be handled so there are no surprises at closing.
If you are comparing homes with different amenity packages, weigh the value of those amenities against the recurring CDD cost. Two homes in Horizon West can carry very different assessments even if they are close by. Choose the combination of amenities, fees, and location that best supports your lifestyle or investment goals.
Work with a team that knows Horizon West
Understanding CDDs is part of making a confident decision in Horizon West. You deserve clear answers, direct access to public records, and a side-by-side comparison that fits your goals. Our team specializes in new construction, investor analysis, and relocation, and we help you verify every number so you can buy with clarity.
Have questions about a specific address or builder? Reach out to Andrea Alonso for a tailored walkthrough of the CDD, HOA, and tax picture for any Horizon West property.
FAQs
What are CDD fees in Florida and what do they fund?
- A Community Development District funds and maintains infrastructure and amenities, using bond assessments for debt service and O&M assessments for annual operations.
How do CDD fees appear on Orange County tax bills?
- CDD assessments typically show as non-ad valorem line items on the annual tax bill, separate from ad valorem property taxes.
Who pays the CDD if a Horizon West home closes mid-year?
- The owner of record on January 1 is legally responsible for that year; buyers and sellers usually agree to prorations at closing.
Can CDD assessments in Horizon West change after I buy?
- O&M assessments can change each year when the district adopts a new budget; bond assessments follow the bond documents and can be affected by refinancings.
Will my lender escrow CDD assessments in Horizon West?
- Many lenders escrow CDD assessments along with taxes, though practices vary by lender and loan program.
Are CDD assessments deductible on federal taxes?
- Deductibility depends on tax characterization and your situation; consult a tax advisor for personalized guidance.
Do CDDs affect resale value or rental returns in Horizon West?
- They can; some buyers value CDD-funded amenities while others focus on the extra recurring cost, and investors should include CDDs in NOI and cap rate analysis.
