Seeing a “CDD fee” on a Westlake listing or tax bill and not sure what it means? You are not alone. Many buyers in newer Palm Beach County communities encounter CDDs and want to understand how they affect total cost of ownership.
This guide breaks down what a Community Development District is, what CDD fees fund in Westlake, how they are billed, how they differ from HOA dues, and where to find the exact amount for a specific home. You will also see a simple way to estimate your monthly budget with CDD included.
Let’s dive in.
CDD basics in Florida
A Community Development District is a special-purpose local government formed under Florida Statutes Chapter 190. CDDs plan, finance, build, and maintain public infrastructure and communitywide improvements within a defined boundary.
A CDD can issue bonds, adopt annual budgets, and levy non-ad valorem assessments on properties that benefit from the improvements. Because a CDD is a public entity, its budgets, meetings, and assessment rolls are public records.
Why Westlake uses CDDs
Westlake is a newer, master-planned city in Palm Beach County. Large-scale infrastructure like roads, drainage, utilities, and community amenities must be built up front. CDDs are a common way to finance these costs and spread repayment across the properties that benefit from them.
If you are shopping new construction or recent resales in Westlake, plan on CDDs being part of the carrying cost unless a community clearly states there is no CDD.
How CDD assessments work
Two parts of a CDD fee
- Debt service assessments. These repay the bonds used to fund big-ticket infrastructure. Debt service is usually the largest portion of the CDD and typically follows a set schedule over the life of the bond.
- Operations and Maintenance (O&M) assessments. These fund the district’s annual operating budget, such as landscaping, amenity operations, insurance, utilities, and management. O&M can change year to year through the budget process.
How amounts are set
The district’s engineer and consultant prepare an assessment methodology. It allocates costs across property types and lots using factors like lot type, acreage, unit count, or Equivalent Residential Units. The adopted assessment roll shows the annual charges for each parcel.
How and when you pay
Most CDD assessments are billed annually as non-ad valorem assessments on your Palm Beach County property tax bill. You will see them listed on a separate line for the specific district. Some districts allow prepayment of the bond portion or may charge one-time capital assessments at closing depending on the bond documents. Unpaid CDD assessments become liens and follow statutory collection procedures.
Where to find your exact Westlake CDD fee
You can verify the current CDD amount for any Westlake property using a few local sources:
- Palm Beach County Tax Collector. Search the parcel’s current tax bill to see the non-ad valorem assessment lines that include CDD charges. Start at the Palm Beach County Tax Collector.
- Palm Beach County Property Appraiser. Look up the parcel details and identifiers that can help you locate the right district and assessment roll. Visit the Palm Beach County Property Appraiser.
- CDD website or district manager. Many districts post adopted budgets, assessment rolls, engineer’s reports, and meeting agendas online. The district manager can confirm the current year amount and any prepayment options.
- Clerk & Comptroller official records. Recorded bonds, resolutions, and plats provide legal context on assessments and liens. Check the Palm Beach County Clerk & Comptroller.
- Your title company and seller disclosures. The title company can obtain payoff or estoppel letters if a one-time capital assessment is due at closing. Sellers should disclose ongoing assessments, and the Closing Disclosure will reflect any amounts collected at closing.
CDD vs HOA at a glance
Here is how CDDs and HOAs play different roles in Westlake communities:
- Legal status. A CDD is a public special district. An HOA is a private association.
- Purpose. CDDs fund major infrastructure and long-term improvements through bonds and O&M. HOAs fund covenant enforcement, private amenities, and reserves.
- Collection and enforcement. CDD assessments are collected as non-ad valorem assessments and have collection authority similar to tax liens. HOA dues are collected by the association under association law.
- Duration. CDD debt service usually lasts for the bond term, commonly 20 to 30 years. HOA dues continue as long as the community exists.
- Predictability. Debt service is typically fixed by the bond schedule, while O&M can adjust annually. HOA budgets can also change yearly.
What it means for your monthly budget
When you compare homes in Westlake, account for the full monthly carrying cost, not just the mortgage payment. Include:
- Mortgage principal and interest
- Property taxes
- Homeowner’s insurance
- HOA dues
- CDD assessment (annual amount divided by 12)
- Utilities and any private amenity fees
A quick monthly estimate:
Monthly cost ≈ P&I + (annual property tax ÷ 12) + (homeowner’s insurance ÷ 12) + HOA dues + (annual CDD assessment ÷ 12) + other recurring fees.
Hypothetical illustration only:
- Annual CDD assessment: $2,400 → $200 per month equivalent
- HOA dues: $150 per month
- Combined impact: $350 per month added to your base mortgage, taxes, and insurance
Use the actual CDD and HOA numbers for the specific Westlake property you are considering. Your lender will typically count recurring CDD assessments in your qualifying ratios. One-time capital assessments, if any, impact cash to close rather than monthly payments.
New construction vs resale in Westlake
- New construction. Early phases often carry higher per-lot debt service because there are fewer homes over which to spread bond repayment. Builders may offer incentives from time to time, but you should verify details with the district and the builder before relying on them.
- Resale homes. You usually pay the same annual assessment as the prior owner unless a portion of the bond was prepaid. If a previous owner prepaid, your ongoing debt service could be lower, but confirm with the district manager and on the current tax bill.
- Future changes. O&M can change annually. Debt service usually follows the bond schedule, but districts can issue new bonds for future phases. Review meeting minutes and budgets to understand potential changes.
Smart steps to take as a buyer
Follow this simple process to stay ahead of CDD costs:
- Before writing an offer. Ask if the property is in a CDD, request the current annual assessment amount, and confirm whether any capital assessment is due at closing.
- During due diligence. Request the most recent HOA resale certificate and any seller-provided CDD info. Ask your lender how the CDD will be treated for qualifying and escrow.
- Before closing. Have your title company request a CDD payoff or estoppel letter if needed and confirm how the amounts will appear on your Closing Disclosure.
- If numbers are unclear. Use the Palm Beach County Tax Collector site and the Palm Beach County Property Appraiser to estimate current-year charges, then verify with the district manager.
Common lender considerations
Most lenders include recurring CDD assessments and HOA dues in your monthly housing expense and debt-to-income ratio. If there is a one-time capital assessment collected at closing, it typically increases your cash to close rather than your monthly payment. Always confirm with your lender so your pre-approval reflects the full picture.
The bottom line for Westlake buyers
CDD fees help fund the infrastructure and amenities that make Westlake livable and attractive. They also add a predictable line item to your annual tax bill. When you understand the debt service versus O&M portions, verify the exact amount for your parcel, and fold it into your monthly budget, you can compare Westlake homes with confidence.
If you want help pulling the right documents, confirming lender treatment, and comparing new construction to resales, connect with Janet Cordero. With 25 years of local experience and a lending background, Janet can help you understand the numbers and find the right fit in Westlake.
FAQs
What is a CDD fee and why do Westlake homes have it?
- A CDD fee is a non-ad valorem assessment that funds community infrastructure and operations within a special district. Westlake uses CDDs to finance roads, utilities, drainage, and amenities in a growing master-planned city.
Where do I see the CDD amount for a specific Westlake home?
- Check the current tax bill on the Palm Beach County Tax Collector site and confirm the figure with the district’s adopted assessment roll or district manager.
How is a CDD different from an HOA in Westlake?
- A CDD is a public district that funds infrastructure through bonds and O&M assessments, while an HOA is a private association that funds enforcement, private amenities, and reserves through dues.
Can CDD assessments change after I buy?
- O&M assessments can change annually during the budget process, while debt service typically follows the bond schedule; future bond issuances could affect totals, so review district budgets and minutes.
Will my lender count the CDD when qualifying me?
- Yes, most lenders include recurring CDD assessments in your monthly housing expense; one-time capital assessments usually affect cash to close rather than your monthly payment.
Can I prepay the CDD bond portion to lower my bill?
- Some districts allow prepayment of the debt service portion; verify prepayment options and amounts with the district manager and on the current year assessment documents.
