What Is a CDD Fee in Westlake?

Curious why some new Westlake homes list a “CDD fee” and what it means for your budget? You are not alone. Many Palm Beach County buyers run into CDDs when exploring master‑planned communities and want clear answers. In this guide, you will learn what a CDD is, how assessments show up on local tax bills, how to estimate the monthly impact, and what to verify before you write an offer. Let’s dive in.

What is a CDD?

A Community Development District, or CDD, is a special-purpose local government in Florida that plans, finances, builds, and maintains community infrastructure for a defined area. Think roads, stormwater systems, parks, and amenity centers.

Under Florida law, most CDDs finance these improvements by issuing bonds that are repaid by assessments on the properties that benefit. Those assessments are set by the district’s board and collected each year.

Why developers use CDDs

Developers use CDDs to fund major infrastructure without relying only on private funds or general county taxes. The cost is allocated to properties within the district, so you pay for the infrastructure that serves your neighborhood.

Who runs the CDD

A CDD is governed by a Board of Supervisors. At first, the developer usually controls the board. Over time, residents gain representation and can elect board members who help set budgets and policies for the district.

How CDD fees show up

CDD charges typically come in two parts: debt service and operations and maintenance, often called O&M.

• Debt service assessments repay the bonds that financed roads and other capital projects.
• O&M assessments cover yearly costs like landscaping of district areas, utilities, insurance, and administration.

In Palm Beach County, these are commonly billed as non‑ad valorem assessments that appear on your annual property tax bill. Some districts may bill separately instead, so always confirm how the Westlake parcel you are considering is handled.

Where you see the charge

• Palm Beach County property tax bills list non‑ad valorem assessments by district name when the county collects them with property taxes.
• If billed off the tax roll, you receive a separate invoice from or for the CDD.
• The Palm Beach County Property Appraiser’s parcel page often indicates whether a property lies inside a CDD, and the Tax Collector’s bill shows the assessment lines when collected on the tax bill.

What varies by home type

CDD assessments are typically levied per platted lot and may differ by product type, such as single‑family homes versus villas or townhomes. Always verify the current amount for the exact lot or floor plan you are considering.

Budget impact and escrow

CDD assessments are quoted annually, which can make it hard to picture the monthly effect. A quick estimate helps you fold the fee into your housing budget.

Convert annual to monthly

Here is a simple method using a hypothetical example.

• Annual CDD assessment: $2,400
• Monthly estimate: $2,400 ÷ 12 = $200 per month

Use this only as an illustration. Actual Westlake assessments vary by district, lot, and home type, and they can change over time. Debt service portions often stay stable until bonds are paid off, while O&M can adjust year to year.

Escrow and loan approval

Many lenders escrow recurring taxes and assessments that appear on the tax bill. If your Westlake CDD is collected on the tax roll, your lender may include it in your monthly escrow payment with property taxes and insurance. If billed separately, you may pay it outside escrow. Policies vary by lender, so ask how your CDD will be treated and how it factors into your debt‑to‑income ratio.

CDD vs HOA

It is easy to confuse these, but they are different organizations with different roles.

• CDD: A public special district formed under Florida law that can issue bonds and levy non‑ad valorem assessments. Pays for long‑term infrastructure and ongoing district maintenance.
• HOA: A private association that enforces community covenants and manages HOA‑owned amenities. Collects member dues and potential special assessments. HOAs do not issue municipal bonds.

Many Westlake neighborhoods have both. If so, you should budget for CDD assessments and separate HOA dues.

Can you prepay a CDD?

Some districts allow owners to prepay part or all of the remaining bond debt. Availability and payoff amounts are set by the district’s bond documents and trustee. O&M is ongoing for as long as the district maintains facilities. Always confirm prepayment options, costs, and procedures for the specific Westlake district you are considering.

Verify fees in Westlake

Because assessments vary by lot and change over time, the best step is to pull official records for the exact property.

Documents to request

• CDD Engineer’s Report and bond Official Statement that show total bonds and projected assessments by unit type.
• The CDD’s current annual budget that outlines O&M.
• The Palm Beach County property tax bill for the lot to see how the assessment appears.
• Builder or sales office disclosures with current estimated CDD amounts for each product type.

Questions to ask

• What is the current annual CDD assessment for this lot or home type, including debt service and O&M?
• Is the developer covering any portion for initial years? When does that end?
• Is the CDD billed on the tax roll or by separate invoice, and will my lender escrow it?
• How many years remain on the bond repayment schedule?
• Can I prepay the bond portion? What is the payoff amount and process?
• Will the CDD continue to own and operate the amenities, or will any transfer to an HOA?

Bottom line for Westlake buyers

A CDD is a normal part of many master‑planned communities in Florida, including Westlake. It funds the infrastructure that supports your neighborhood, and the cost appears as a recurring assessment. When you verify the exact annual amount and convert it to a monthly figure, you can compare homes apples to apples and avoid surprises at closing.

If you want a local guide to help you pull the right documents, read the fine print, and align your budget with your goals in Westlake, reach out to Jeanne Gordon. You will get patient, detail‑driven support grounded in deep Palm Beach County experience.

FAQs

What is a CDD fee in Westlake?

• A CDD fee is a non‑ad valorem assessment that funds infrastructure and maintenance within a designated Community Development District serving parts of Westlake.

How are CDD fees collected in Palm Beach County?

• They commonly appear as line items on the annual property tax bill, though some districts bill separately, so always confirm for the specific parcel.

Do CDD fees replace HOA dues?

• No, they are separate; many communities have both a CDD for infrastructure and an HOA for covenants and HOA‑owned amenities.

Will my lender escrow the CDD fee?

• Many lenders escrow recurring assessments that appear on the tax bill, but policies vary, so ask your lender how they will handle your Westlake CDD.

Can I pay off my CDD early?

• Some districts allow prepayment of the bond portion based on their bond documents, while O&M continues for ongoing maintenance.

How long do CDD fees last?

• The debt service portion runs until bonds are repaid, and the O&M portion continues annually for as long as the district maintains facilities.