A CDD fee stands for Community Development District fee, which is a fee imposed by the developer of a neighborhood or subdivision to finance the cost of amenities in a neighborhood. These fees are different from HOA fees in that they are incorporated into your annual property tax bill and are paid annually. CDD fees are comprised of two parts: Bond (or Debt) and Operations and Maintenance. The Bond (or Debt) is a fixed amount and finances the infrastructure and amenities in the community, such as repairing and installing new roads, constructing or repairing schools, and maintaining sewers, sports courts, community pools, parks, and sidewalks. The Operations and Maintenance part of the fee is used to pay off the debt incurred from financing community infrastructure through bonds, as well as ongoing maintenance costs. CDD fees vary by development and are based on the amount of the loan taken from the county divided by the number of homes responsible for paying back the loan. CDD fees are usually paid over a 20 to 30-year term and are tax-deductible, like property taxes. It is important to note that CDD fees are not property taxes nor should they be confused with Homeowners Association Fees.