The Hidden Costs of Buying a Brand-New Home in Florida: Builder Fees, CDDs and Upgrades

Buying

Oct 20

Quick answer: A new-construction price is where the math starts. Before you sign, find out whether the home is in a community development district whose assessments are collected like taxes, what the builder's closing credit covers and what it requires, which upgrades are included and which are extra, and what the one-year builder warranty under Florida law covers. Impact fees are set by local governments and can change, and Florida generally requires at least 90 days' notice before a new or increased fee takes effect. Ask the builder for every number in writing.

Most new-home buyers in our area focus on the base price and the monthly principal and interest. Those numbers matter, but they leave out the costs that come from the community, the local government and the upgrades you choose. This article covers the items I review with every new-construction buyer, the Florida rules that apply, and the questions to put to the builder before you rely on a number.

Community development district assessments

Many newer communities in Florida are governed by a community development district (CDD) created under Chapter 190. A CDD can finance infrastructure such as roads, water and drainage, and it pays for that work with benefit special assessments. Those assessments may be collected like taxes, and the statute describes the lien as coequal with state, county, municipal and school board taxes (ss. 190.021(2), (9)). A district may spread its assessments over no more than 30 yearly installments (s. 190.022(2)). A CDD is not the same as a homeowners association. Chapter 720 excludes districts from its definition of an association (s. 720.301(9)), but the assessment is still a real cost you need on your list. For a broader look at how these charges differ from HOA dues, read our no-HOA guide.

Florida also requires a specific statement in the contract for initial sales after the district is established. It must appear immediately before the buyer's signature space, and it says the district may impose and levy taxes or assessments, or both, on the property (s. 190.048). If the home is in a CDD and the statement is not in the contract, ask why.

Impact fees

Local governments charge impact fees to help pay for growth. Under s. 163.31801, a fee must be proportional and reasonably connected to, or have a rational nexus with, the need the new construction creates (s. 163.31801(4)(d)). New or increased fees generally require at least 90 days' notice (s. 163.31801(4)(f)). Schedules are published on a calendar, and they expire. The City of Port St. Lucie's impact fee schedule that I found covered June 30, 2025 through June 29, 2026, so it is no longer current, and I could not confirm the schedule that applies to a home closing now. St. Lucie County's published rate sheet covers a period that ended September 30, 2026. The practical step is simple: ask the builder which schedule applies to your lot and when it was set, and read the contract to see who pays if a fee changes between signing and closing.

Your first tax bill may not match the estimate

Florida assesses property based on its status on January 1. Improvements that are not substantially completed on January 1 have no value placed on them for that year (s. 192.042(1)). A home finished in the middle of a year can therefore produce a first tax bill that is different from the builder's estimate, and the years after that depend on the assessed value that follows. Non-ad valorem charges, such as CDD assessments and city charges, are billed separately from the ad valorem tax. If you want to understand how the November 3, 2026 ballot measure could change the non-school homestead exemption and the cap on non-homestead assessments starting in 2027, see our Amendment 3 post.

The builder warranty

Section 553.837 requires a builder to provide a one-year warranty against construction defects that cause a material violation of the Florida Building Code. The warranty starts at the earlier of the transfer of title or first occupancy, and it transfers to a later buyer on resale. That is the statutory minimum. A builder may offer a longer or broader written warranty, and the terms are in that document. Ask for the written warranty before you sign, read what it excludes, and ask how a claim is submitted and who responds.

Closing credits and included upgrades

Builder incentives can be useful, and they can also be harder to compare than they look. I have not found a Florida statute that specifically regulates builder closing-cost credits or upgrade pricing. The general rule still applies: Florida prohibits unfair or deceptive acts in trade or commerce (s. 501.204(1)). In practice, I ask builders for three things in writing: the price of the home with every included feature listed, the exact amount and purpose of any credit, and a clear statement of which upgrades are extra and what they cost. If an incentive depends on using a particular lender or title company, I want to know that before the contract, not at closing. Compare the net result of each incentive, because a credit paired with a higher interest rate or a higher price may leave you paying about the same as before.

Put it together before you sign

Estimate your monthly cost with every item above included: the base payment, property taxes at the new assessed value, CDD or other assessments, insurance quotes, and the upgrades you will actually pay for. The number that matters is the one that includes everything the community and the builder add.

Questions buyers ask about new construction

Is a CDD assessment the same as HOA dues?

No. Chapter 720 excludes community development districts from its definition of an association (s. 720.301(9)). CDD assessments are levied under Chapter 190 and can be collected like taxes, so they belong on your cost estimate even when the home has no HOA dues.

What must the contract say about a CDD?

Section 190.048 requires a statement immediately before the buyer's signature space saying the district may impose and levy taxes or assessments, or both, on the property. Confirm the exact wording against the statute and the contract you are given.

What warranty comes with a new build in Florida?

Under s. 553.837, a builder must provide at least a one-year warranty against defects that cause a material violation of the Florida Building Code. It starts at the earlier of title transfer or first occupancy and transfers on resale. Builders may offer longer warranties in writing.

Why can my tax bill differ from the builder's estimate?

Florida values property as of January 1. Improvements not substantially completed by then have no value placed on them for that year (s. 192.042(1)). Non-ad valorem charges such as CDD assessments are billed separately from ad valorem taxes.

Can impact fees change before closing?

They can. Local impact fee schedules are published for set periods and expire, and under s. 163.31801 a new or increased fee generally requires at least 90 days' notice. Ask the builder which schedule applies to your lot and read the contract for who pays any change.

Talk with William. Buying new construction and want the full monthly number, including the CDD, the fees, the first tax bill and the upgrades? Send me the builder's sheet and the contract. I will help you list every item to confirm in writing before you sign. Call or text (772) 800-2274 or send a message.

General information, not legal, tax, lending or financial advice. Builder incentives, CDD assessments, impact fees and tax values depend on the specific community, lot and contract. Statute references are to the 2026 Florida Statutes as reviewed on October 20, 2026. Ask a Florida real estate attorney to review the contract and warranty. William Merchant, REALTOR®, RE/MAX Gold. Each RE/MAX office is independently owned and operated. Equal Housing Opportunity.

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William Merchant