Running numbers on a Jacksonville rental in a Community Development District can feel like a puzzle. You see the purchase price and the potential rent, but the true monthly cost hides in line items most listings never spell out. You want a clean, conservative underwriting model that protects cash flow and avoids surprises at closing.
This guide breaks down how CDD assessments work in Duval County, how they interact with HOA dues, taxes, and insurance, and exactly how to convert them to a monthly number for DSCR, NOI, or DTI. You will also get a step-by-step workflow to verify a specific Duval CDD’s budget and upcoming votes with official sources. Let’s dive in.
CDDs in Florida and Duval
A Community Development District is a special-purpose local government that finances and maintains infrastructure for a community. Its powers and processes come from Chapter 190 of the Florida Statutes. Many CDDs issue bonds to fund roads, utilities, and amenities. Those costs are repaid through assessments on property within the district.
In Duval County, CDD assessments usually appear as non-ad valorem line items on your annual property tax bill, or the district bills you directly. You can confirm how a specific parcel is billed using the Duval County Property Appraiser search and the Duval County Tax Collector.
CDD vs. HOA: Different roles, separate bills
A CDD is a government entity. An HOA is a private association that enforces community covenants. Your property may have both. The CDD typically handles infrastructure and public amenities. The HOA manages covenants and common areas and may have rental rules.
From an underwriting perspective, treat CDD assessments and HOA dues as distinct, recurring costs. Both sit alongside property taxes and insurance in your expense model. In many cases the CDD’s O&M and bond components together are material enough to move DSCR or DTI.
Identify the CDD charges
Start by clarifying what you are paying for and how it is billed:
- O&M assessment. Annual operating costs to run the district and maintain assets.
- Bond debt service assessment. Repayment for tax-exempt bonds, often fixed by schedule.
- Special or one-time assessments. For capital projects or repairs.
- Collection method. On the county tax bill or invoiced directly by the district/manager.
Find authoritative amounts
Use official documents to capture the exact numbers:
- Adopted annual budget and assessment resolution. Shows O&M totals and the allocation per unit type.
- Assessment roll or owner notice. Lists parcel-level assessments.
- County tax bill. Confirms whether assessments are collected with taxes and the due dates.
- Meeting agendas and minutes. Provide early notice of increases or special assessments.
- Bond documents. Identify debt service schedules and maximum assessments.
When possible, verify with the district manager listed in the state’s directory and keep copies in your file.
Convert to a monthly expense
To keep your model consistent, convert every recurring charge to a monthly number:
- If billed annually on the tax bill: divide by 12.
- If billed semiannually: divide by 6 to get a monthly equivalent.
- If billed quarterly: divide by 3 to get a monthly equivalent.
Always include both taxes and any CDD line items that appear on the tax bill when calculating total monthly housing costs. If you underwrite without escrow, still use a monthly prorated figure so affordability and cash flow stay realistic.
Worked example
Here is a simple example of how to translate yearly costs into a monthly total:
- CDD O&M: $1,200 per year
- CDD bond debt service: $1,800 per year
- HOA dues: $2,400 per year
- Property taxes: $4,800 per year
- Property insurance: $1,200 per year
Monthly equivalents:
- CDD total: ($1,200 + $1,800) ÷ 12 = $250 per month
- HOA: $2,400 ÷ 12 = $200 per month
- Taxes: $4,800 ÷ 12 = $400 per month
- Insurance: $1,200 ÷ 12 = $100 per month
Total recurring housing-related charges: $250 + $200 + $400 + $100 = $950 per month. Use this figure in NOI, DSCR, or borrower DTI as appropriate.
Duval verification workflow
Follow this step-by-step process to verify a specific property’s CDD and confirm current and potential assessments:
- Start at the parcel level
- Use the Duval County Property Appraiser search to find the parcel by address or RE number. Note taxing district details and any special assessment indicators.
- Pull the latest bill from the Duval County Tax Collector. Look for non-ad valorem lines that list the CDD by name and confirm collection method and timing.
- Identify the CDD officially
- Use the state’s Florida Special District Search to find the district by county or name. You will see the formal district name, board information, and the management company or district manager contact.
- Pull district documents
- Visit the district’s website if one is listed. Look for adopted budgets, assessment resolutions, meeting calendars, and agenda packets. Agendas often include proposed budgets and any special assessment items before they are approved.
- Check bond disclosures if applicable
- If the district has bonds, review the Preliminary Official Statement or continuing disclosures in the MSRB’s EMMA database. Debt service schedules and maximum assessments will help you forecast future changes.
- Confirm and document
- Email or call the district manager to confirm the current annual assessment for the specific lot, broken into O&M and debt service. Ask about any approved special assessments, planned capital projects, and expected increases in the next 1 to 3 years. Save responses and documents to your underwriting file.
How lenders treat CDD assessments
Treatment varies by product, but the theme is the same: if the assessment is recurring and tied to the property, plan to include it.
- Conventional loans. Underwriters include recurring HOA fees and property-assessed obligations that are billed to the owner. Review the latest Fannie Mae Selling Guide and Freddie Mac Seller/Servicer Guide for documentation expectations.
- FHA and VA. FHA and VA require documentation of special assessments and association obligations for eligibility and ratio analysis. Check current agency guidance when a condo or association is involved.
- DSCR and investor loans. Treat CDD and HOA as operating expenses in your NOI. Conservative underwriters want clear documentation and may stress-test for increases.
- Portfolio lenders. Local banks may be flexible, but they still expect evidence and prudent treatment of recurring assessments.
Key documents to request
Collect these early to avoid underwriting delays or re-trades:
- Current property tax bill showing non-ad valorem assessments, if any
- Adopted CDD budget and assessment resolution for the current fiscal year
- Assessment roll or owner invoice with the parcel’s exact amount
- Recent meeting agendas or minutes describing any proposed or approved increases
- Bond documents or a summary of the parcel’s debt service amount
- HOA covenants and estoppel to confirm any rental policies and whether any pass-throughs exist
Questions to ask the CDD
Use these to confirm both today’s numbers and tomorrow’s risks:
- Is the assessment collected on the county tax bill or invoiced directly? What is the schedule?
- What is the total current annual assessment for this lot, with a breakdown of O&M and debt service?
- Have any special assessments been approved? If yes, what is the estimated per-unit amount and timing?
- Are increases expected in the next 1 to 3 years? What factors could drive them?
- Who is the point of contact for billing and account questions?
Avoid these common pitfalls
- Mixing HOA and CDD. They are separate. Underwrite both distinctly.
- Ignoring billing method. If the CDD is on the tax bill, your escrow may change. If billed directly, your monthly cash flow changes.
- Missing special assessments. Board agendas often preview increases. Read them before you make offers or finalize loan terms.
- Underestimating bond impacts. Bond schedules can keep the debt service portion steady for years. Know the term and maximum assessments.
- Skipping parcel-level confirmation. District-wide budgets are helpful, but the assessment roll or tax bill confirms the amount for the property you are buying.
Bringing it together in Jacksonville
When you price a rental in a Duval CDD community, your edge is precision. Confirm the district, pull the adopted budget, check the tax bill, and convert everything to a monthly figure you can defend. Then pressure-test the numbers with a 1 to 3 year look-ahead for possible increases. This approach protects DSCR, supports appraisal and loan approval, and helps you write offers with confidence.
If you want a second set of eyes on a specific community or need help sourcing the right documents, reach out. You will get clear numbers and a negotiation-focused plan to move forward. Unknown Company
FAQs
What is a CDD in Florida?
- A Community Development District is a local government entity authorized under Chapter 190 of the Florida Statutes to finance, build, and maintain infrastructure for a community. It funds costs through assessments on properties within the district.
How do CDD assessments show up in Duval County?
- In Duval County, CDD assessments usually appear as non-ad valorem line items on the annual property tax bill or are invoiced directly by the district or its manager. You can verify using the Duval County Tax Collector.
What is the difference between a CDD and an HOA?
- A CDD is a governmental district that handles infrastructure and public amenities. An HOA is a private association that enforces community covenants. Both can charge separate recurring amounts that you should include in underwriting.
How do I find my property’s exact CDD amount?
- Start with the Duval County Property Appraiser search and the Duval County Tax Collector. Then use the state’s Florida Special District Search to locate the CDD’s manager and adopted budget.
How should I model CDD costs for a rental loan?
- Convert all recurring items to monthly equivalents. Include CDD O&M and bond assessments, HOA dues, property taxes, and insurance as operating expenses to calculate NOI and DSCR. Keep documentation in your file for lender review.
Where can I research CDD bond debt?
- If the district has issued bonds, look up the Preliminary Official Statement and continuing disclosures in the MSRB’s EMMA database. These documents outline debt service schedules and assessment structures.
