Eyeing a new home in Westlake and hearing a lot about CDD fees? You are not alone. These assessments can be confusing at first, and they directly affect your monthly budget and loan approval. In this guide, you will learn what a CDD is, how fees are set and collected in Palm Beach County, how to find the exact amount for a specific Westlake home, and how to plan for the cost. Let’s dive in.
What a CDD is
A Community Development District (CDD) is a special local government in Florida that helps finance, build, operate, and maintain infrastructure and amenities in a community. Under Florida law (Chapter 190), a CDD can fund things like roads, water and sewer systems, stormwater, parks, landscaping, and lighting.
CDDs typically issue tax-exempt bonds to pay construction costs upfront. Homeowners in the district repay those bonds over time through special assessments attached to their properties.
The two CDD fee types
- Debt-service assessment: This pays back the bonds used to build the infrastructure.
- Operation and maintenance (O&M) assessment: This covers the district’s yearly costs like maintenance, insurance, administration, and reserves.
Why Westlake uses CDDs
Westlake is a newer city in Palm Beach County with several new neighborhoods. Many of these communities use CDD financing to build needed infrastructure and amenities. Because each district is created for a specific development, assessment amounts vary by neighborhood and by the bond package in place.
There is no single “Westlake CDD fee.” You need parcel-specific information to know your exact obligation.
How CDD fees are assessed
In Palm Beach County, CDD assessments are usually placed on your annual property tax bill as non-ad valorem assessments. They are listed as separate line items from ad valorem property taxes.
The district’s engineer and bond documents define how assessments are allocated. Amounts can be per lot, by unit type, by frontage, or based on acreage. Single-family homes, townhomes, and condos can have different formulas.
When fees start and change
Developers sometimes fund early years or use capitalized interest. Once lots are platted and bonds are outstanding, the assessment follows the parcel and transfers to you at closing. O&M assessments can change each year based on the district’s approved budget. Debt-service amounts usually follow the bond amortization schedule but can change if supplemental bonds or special assessments are issued.
Where to find your Westlake amount
To verify the exact annual CDD assessment for a specific property, check:
- Palm Beach County Property Appraiser records for non-ad valorem assessment details.
- Palm Beach County Tax Collector’s annual tax bill for the CDD line items.
- Palm Beach County Clerk & Comptroller’s Official Records for recorded assessment and bond documents.
- The specific CDD’s website or district manager for budgets, assessment rolls, meeting minutes, and audits.
- The builder or seller for the sales contract, current year budget, and the assessment worksheet for the parcel.
How CDD fees affect your payment
CDD assessments are recurring obligations, so you should include them in your monthly housing budget. Many lenders treat CDD fees similar to HOA dues or taxes and include them in your debt-to-income calculation. Some lenders also escrow these amounts with property taxes and insurance.
A simple monthly example (hypothetical)
- Annual CDD assessment: $1,800 per year
- Monthly equivalent: $1,800 ÷ 12 = $150 per month
Example blended monthly payment (hypothetical):
- Principal and interest: $1,600
- Property tax (escrow): $300
- Home insurance (escrow): $100
- CDD assessment (monthly equivalent): $150
- Total estimated monthly housing payment: $2,150
Use this method for any property: get the current annual CDD amount, then divide by 12 to see the real monthly impact.
Prepayment, escrow, and closing
Some districts allow you to prepay the debt-service portion of the assessment, which pays off your share of the bonds early. Terms, timing, and any premiums are set in the district’s bond documents and vary by project.
At closing, assessments are usually prorated, and the title company will confirm any unpaid amounts or liens. Ask your lender if the CDD assessment will be escrowed and how it will appear on your monthly statement.
Buyer checklist for Westlake new builds
Use this quick checklist to stay organized:
Ask the builder or sales agent
- What is the current total annual CDD assessment for this lot, with debt-service and O&M broken out?
- Is the builder paying any portion for a limited time? If yes, how long and how much?
- Is the O&M amount subject to change each year?
- Are there any additional special assessments planned or possible?
Request and review documents
- Current district budget and any proposed budget.
- Assessment roll or worksheet showing the amount assigned to your specific parcel.
- Bond Official Statement and related bond documents, including amortization and prepayment terms.
- Engineer’s report or assessment methodology.
- Recent district meeting minutes and audit.
- Current tax bill or an official tax estimate that shows CDD line items.
Questions for your lender and title company
- How will the CDD assessment be counted for qualifying and debt-to-income?
- Will the assessment be escrowed with taxes and insurance?
- How will it appear on the closing disclosure and future statements?
- Will the title company confirm any unpaid assessments or liens at closing?
Negotiation and contract tips
- Get any builder-paid assessment commitments in writing within the contract.
- Request the first year’s total estimated assessments with documentation.
- If the assessment seems high compared to similar neighborhoods, ask for the reason and supporting documents.
Red flags to check
- Rapidly rising O&M assessments or budget shortfalls noted in audits.
- Large outstanding bond issuance with uncertain project build-out.
- Difficulty accessing district records or unresponsive district management.
Bottom line
CDDs are common in Westlake and across Palm Beach County. They help fund the amenities and infrastructure you see, but they also add a recurring cost that needs to fit your budget and loan qualifications. Focus on the facts for the specific parcel, convert the annual amount to a monthly figure, and review the district’s budget and bond terms before you sign.
If you want help pulling parcel-specific numbers and comparing neighborhoods, reach out to Shelby Moise for clear guidance from a local new-construction specialist.
FAQs
Are CDD fees mandatory for Westlake homes?
- Yes. When recorded as special assessments, CDD fees are mandatory and typically appear on your annual property tax bill as non-ad valorem assessments.
How are CDD fees different from HOA dues?
- They are separate. HOA dues are set by a private association, while CDD assessments are levied by a governmental district. A property can have both.
Do lenders count CDD fees in mortgage qualifying?
- Usually yes. Lenders generally include mandatory CDD assessments in your housing expense ratio and may require escrow. Confirm details with your loan officer.
Can I prepay my CDD assessment in Westlake?
- Sometimes. Some districts allow prepayment of the debt-service portion based on the bond documents. Terms and costs vary by district.
Do CDD assessments ever end?
- Debt-service assessments last until the bonds are paid off. O&M assessments typically continue as long as the district operates.
Are CDD assessments tax-deductible?
- Tax treatment varies. Consult a qualified tax professional for advice based on current tax law and your situation.
