For over half a century, Walt Disney World operated inside its own private government — the Reedy Creek Improvement District — with powers most companies could only dream of, until the state reorganized it into the Central Florida Tourism Oversight District in 2023. It's the most famous example of a special district in Florida. But here's what most buyers don't realize: a close cousin of that idea sits quietly beneath thousands of ordinary Florida subdivisions. It's called a Community Development District (CDD), and if you buy in one, it affects your taxes, your title, and your closing.
Here's how Florida's "private governments" work, and what to look for before you buy inside one.
- A special district is a local unit with its own powers and financing.
- A CDD funds a subdivision's infrastructure via assessments.
- CDD assessments can appear on your tax bill for years.
- Florida requires CDD disclosure to buyers — read it before closing.
What a Special District Is
A special district is a unit of local government created for a limited purpose — providing infrastructure or services in a defined area, with the authority to levy assessments or taxes and issue bonds to pay for it. Reedy Creek was an unusually powerful one, effectively letting Disney handle its own planning, building, utilities, and services. Most special districts are far more modest — but they share the core idea: a mini-government tied to a piece of land.
The CDD Behind Your Subdivision
The version you're most likely to actually buy into is a Community Development District (CDD). Developers use CDDs to finance the roads, water and sewer, drainage, and amenities of a new community — issuing bonds up front and then repaying them through assessments on the homeowners over many years. In other words, the community's infrastructure gets built on borrowed money, and the residents pay it back through their district. Thousands of Florida subdivisions, especially newer master-planned ones, are inside a CDD.
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CDD Assessments: the Extra Bill
Here's what surprises buyers financially. In a CDD, you typically pay CDD assessments in addition to your regular property taxes and any HOA dues — often collected right on your annual property tax bill. These assessments usually include a portion repaying the district's bond debt (which can run for many years until it's paid off) plus ongoing operations and maintenance. It's not a hidden scam — it's how the community was built — but a buyer comparing two homes needs to know that the one in a CDD may carry a meaningfully higher annual cost for years.
What It Means for Title & Closing
CDDs touch your closing in a few ways. The district's assessments and any liens for unpaid amounts are relevant to a clean closing, and Florida law generally requires a specific CDD disclosure to prospective purchasers, so buyers understand they're buying into a district with assessment obligations. At closing, your title company helps confirm the assessment picture and that nothing is owed that would follow the property to you. The recorded district and its assessment authority are part of what you're taking title subject to.
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What Buyers Should Check
Buying in a CDD or special district is completely normal — you just want to price it in with open eyes:
- Ask whether the community is in a CDD, and read the required CDD disclosure carefully.
- Find out the annual assessment — the bond-repayment portion and the operations portion — and how long the bond debt runs.
- Add it to your true cost of ownership alongside taxes, insurance, and any HOA dues.
- Confirm nothing is unpaid — your title company and the closing process should surface any outstanding assessments or liens.
Disney's Reedy Creek was a private government on a spectacular scale. Your subdivision's CDD is the everyday version — and it's a perfectly good way to build a community, as long as you know it's there and what it costs before you sign.
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Frequently Asked Questions
What is a Community Development District (CDD) in Florida?
A CDD is a special-purpose unit of local government developers use to finance a community's infrastructure — roads, utilities, drainage, and amenities — by issuing bonds and repaying them through assessments on the homeowners over many years. Thousands of Florida subdivisions, especially newer master-planned ones, are inside a CDD.
Do I pay extra for a CDD?
Usually yes. In a CDD you typically pay CDD assessments in addition to regular property taxes and any HOA dues, often collected on your annual property tax bill. The assessments usually include a portion repaying the district's bond debt (which can run for years) plus ongoing operations and maintenance, so a CDD home can carry a higher annual cost.
What was Reedy Creek?
Reedy Creek Improvement District was the special district that allowed Walt Disney World to operate a private quasi-government for decades, handling its own planning, building, utilities, and services. In 2023 the state reorganized it into the Central Florida Tourism Oversight District. It's the most famous example of a Florida special district.
Does a CDD affect my title or closing?
Yes. The district's assessments and any liens for unpaid amounts are relevant to a clean closing, and Florida law generally requires a specific CDD disclosure to buyers. At closing, your title company helps confirm the assessment picture and that nothing owed will follow the property to you, since the district's authority is part of what you take title subject to.
How do I find out if a home is in a CDD?
Ask the seller or agent directly, look for the required CDD disclosure, and review the property tax bill for assessment line items. Your title company and the closing process should also surface the district and any outstanding assessments. Then confirm the annual amount and how long the bond debt runs.
Is buying in a CDD a bad thing?
Not at all — it's a normal and common way Florida communities are financed and built. The key is to know it's there, understand the annual assessment and how long the bond repayment lasts, add it to your true cost of ownership, and confirm nothing is unpaid before closing. Priced in with open eyes, a CDD community can be a great buy.
