Last updated: October 28, 2026
Short answer: Yes. A Community Facilities District is a special taxing district that pays for public infrastructure like roads, water lines and parks in a newer area. If a home is in one, its property tax bill has an extra CFD line. In Avondale, the Alamar CFD's 2026 rate is $4.15 per $100 of assessed value. Search Avondale homes.
Key takeaways
- A CFD is a government district, not an HOA. It sells bonds for public infrastructure, and owners in the district repay them through their property taxes.
- On the 2026 Maricopa County rate sheet, CFD rates run from about $0.29 to $4.33 per $100 of assessed value.
- Under A.R.S. § 48-723, a CFD's operation and maintenance tax is capped at $0.30 per $100 unless voters approve more. Taxes to repay bonds are separate.
- Avondale says you can't pay off the Alamar CFD early. The city says the CFD tax will continue as development progresses and the district issues more bonds.
¡Qué tal! I'm Rosie Armenta. When you shop for a newer home in the West Valley, you may see the letters "CFD" in the listing or the disclosures, and it's fair to wonder what they mean. It isn't a fee you can skip, and it isn't the HOA. It's part of your property tax bill, so it belongs in your monthly budget from day one. Mariela and I want you to understand it before you write an offer, not after your first tax bill.
What is a Community Facilities District in Arizona?
A Community Facilities District (CFD) is a special taxing district formed under Arizona law (A.R.S. Title 48, Chapter 4, Article 6) to pay for public infrastructure in a new area. The Arizona Department of Real Estate's Buyer Advisory describes CFDs as special taxing districts that use bonds to finance the construction, acquisition, operation and maintenance of public infrastructure that benefits the owners in the district, like roadways, public sewer, utility infrastructure and public parks.
The City of Avondale explains it simply on its Alamar CFD page: when a new neighborhood is built, it needs roads, water lines and parks, and instead of paying for all of it up front, the cost is spread out over time. Property owners in the CFD pay a special tax to cover those costs, and the tax applies only to homes in the district, not the whole city.
How is a CFD different from an HOA?
| Community Facilities District (CFD) | Homeowners Association (HOA) | |
|---|---|---|
| Who runs it | A government board. For Avondale's Alamar CFD, the City Council serves as the board | A private nonprofit run by a board of homeowners |
| What it pays for | Public infrastructure: roads, drainage, water and sewer lines, utilities, public parks | Common areas, amenities and enforcing the community's rules |
| How you pay | A line on your county property tax bill | Dues paid to the HOA or its management company |
| How long | Until the district's bonds are repaid | As long as the HOA exists |
| Can you pay it off early? | Not in the Alamar CFD, according to the City of Avondale | No, dues are ongoing |
Sources: City of Avondale, Alamar Community Facilities District page; ADRE Buyer Advisory (January 2025). Avondale page checked October 28, 2026; ADRE advisory checked October 25, 2026.
A home can be in a CFD and an HOA at the same time. If you're comparing HOA costs too, my guide on the HOA fees you pay when buying in Arizona explains transfer and capital fees.
How much does a CFD add to my property taxes?
Arizona property taxes are figured on your home's assessed value. For a home you live in (class three), the assessed value is 10% of the limited property value, or LPV (A.R.S. § 42-15003). The CFD rate is then applied per $100 of that assessed value.
Here's what different CFD rates would add to a home with Avondale's 2026 median LPV:
| No CFD | CFD at $0.30 | CFD at $2.19 | CFD at $4.15 (Alamar) | |
|---|---|---|---|---|
| Limited property value (LPV) | $163,567 | $163,567 | $163,567 | $163,567 |
| Assessed value (10%) | $16,357 | $16,357 | $16,357 | $16,357 |
| Base taxes, tax area 440100 (9.3588 per $100) | $1,531 | $1,531 | $1,531 | $1,531 |
| CFD tax per year | $0 | $49 | $358 | $679 |
| Total per year | $1,531 | $1,580 | $1,889 | $2,210 |
| Total per month | About $128 | About $132 | About $157 | About $184 |
Sources: Maricopa County 2026 tax rate sheet (tax area 440100: Avondale #44 elementary, Agua Fria high school, City of Avondale; CFD rates from the special districts list) and Maricopa County Assessor 2026–2027 single-family comparison (Avondale 2026 median LPV), checked October 28, 2026. Example only: a home's own LPV and tax area code may differ, and totals are before any credits on your bill.
Even if the rate stays the same, the City of Avondale notes that the CFD amount you pay can go up as your assessed value rises. For the full picture of property taxes here, see my guide on property taxes in Avondale.
Remember that CFD taxes are just one line in your monthly cost. Your mortgage payment, homeowners and mortgage insurance, HOA dues, utilities and upkeep all add up too. My guide on whether it's cheaper to rent or buy in Avondale puts all those costs side by side.
Are there limits on CFD taxes?
Yes, in two ways. Under A.R.S. § 48-723, the taxes a CFD levies for operation and maintenance can't be more than $0.30 per $100 of net assessed limited property value, unless the district's voters approve a higher rate at an election held at least three years after the district was formed. Several CFDs on the 2026 county sheet sit at exactly 0.3000, which matches that cap.
Taxes to repay general obligation bonds are separate. Under A.R.S. § 48-719, once bonds are issued, the district levies a yearly tax sufficient to pay the debt service on them. For the Alamar CFD, the City of Avondale lists maximum rates of $0.30 for operations and $3.85 for debt service per $100 of assessed value, which together match the $4.15 rate on the 2026 county sheet.
How do I find out if a home is in a CFD?
- Read the seller's disclosure. The Arizona REALTORS® SPDS asks whether the home is in a CFD, its name and whether the fees are in the property taxes or paid separately.
- Check the detailed tax statement. ADRE says CFDs are found most commonly on the property's detailed property tax statement, which you can look up on the Maricopa County Treasurer's website.
- Look up the tax area code. The Maricopa County Assessor's parcel page shows the tax area, and the county rate sheet shows which special districts apply.
- Read the public report on a new build. For a new subdivision, Arizona requires the public report to include the debt a special district has incurred or plans to incur for improvements (A.R.S. § 32-2181).
- Ask the CFD board. ADRE suggests asking how much is still owed and how many more payments are left. In Avondale, the City Council serves as the Alamar CFD board.
- Plan for it at closing. The standard purchase contract says any CFD assessment lien or bond is prorated as of closing.
Shopping new construction? My builder incentive guide can help you compare offers, and you'll want to compare the CFD line too.
Is a home in a CFD a bad buy?
Not by itself. A CFD paid for the roads, water lines and parks that serve the neighborhood, and the City of Avondale explains that the cost is spread out over time through the tax bill. What matters is whether the total monthly cost fits your budget and how it compares to similar homes without a CFD. Get the numbers in writing, compare them side by side and decide with the full picture.
Ready to compare homes?
Search Avondale homes for sale or use the advanced search to look across the West Valley. If you already own a home, get a free home value report. Then call or text me at 623-295-5770. Mariela and I will pull the tax details on any home you like, so you know the full cost before you make an offer.
Frequently Asked Questions
What does CFD mean on an Arizona listing?
CFD stands for Community Facilities District. It means the home is in a special taxing district that pays for public infrastructure, and the property tax bill includes a CFD tax.
Is a CFD the same as an HOA?
No. A CFD is a government-created district that pays for public infrastructure through property taxes. An HOA is a private organization that maintains common areas and amenities through dues. A home can have both.
How much is the CFD tax in Avondale?
The Alamar CFD in Avondale has a 2026 rate of $4.15 per $100 of assessed value on the Maricopa County rate sheet. On a home with Avondale's 2026 median limited property value of $163,567, that's about $679 a year.
Can I pay off a CFD early?
Not in the Alamar CFD. The City of Avondale says CFD assessments can't be paid off early. They're collected on the property tax bill to repay bonds, and the city says the assessment will continue as development progresses. Other districts may have different rules, so ask the district.
Does a CFD ever go away?
Yes. The City of Avondale says a CFD can be dissolved if its bonds have been fully repaid and the city determines the district is no longer needed. The conditions are in the CFD's formation documents.
How do I know if a house is in a CFD?
Check the seller's disclosure statement, the detailed property tax statement on the Maricopa County Treasurer's website and the tax area code on the Assessor's parcel page. For new construction, read the subdivision public report.
Can a CFD tax go up?
It can. The rate is set each year, up to the district's maximum, and the City of Avondale notes that the amount you pay can rise when your assessed value rises, even if the rate stays the same.
Who pays the CFD tax when a house sells?
The standard Arizona REALTORS® purchase contract says any assessment lien or bond from a special taxing district, such as a CFD, is prorated as of closing. Property taxes, including the CFD line, are also prorated in escrow.
This article is general information, not legal, tax, or financial advice. Please talk with a licensed attorney, CPA, or lender about your situation.
About the authors
Rosie Armenta is a REALTOR® with West USA Realty. She and her daughter, Mariela Armenta, work together as a mother-daughter team. Avondale (85392) is their home base, and they help buyers and sellers across the West Valley in English and Spanish. Call or text 623-295-5770, or get a free home value report.
Rosie Armenta, REALTOR® | West USA Realty | Equal Housing Opportunity
Figures were checked on October 28, 2026 (tax rate sheet, Assessor comparison, Avondale's Alamar CFD page, purchase contract and SPDS) and October 25, 2026 (ADRE Buyer Advisory and statutes), from the Maricopa County 2026 tax rate sheet, the Maricopa County Assessor's 2026–2027 single-family comparison, the City of Avondale's Alamar Community Facilities District page, the Arizona Department of Real Estate Buyer Advisory (January 2025), the Arizona REALTORS® purchase contract (February 2026) and SPDS (February 2023), and A.R.S. §§ 42-15003, 48-719, 48-723 and 32-2181. Tax rates change every year, so check the current Treasurer statement for any home.