Trying to make sense of CDD fees in The Villages? You are not alone. If you are relocating or downsizing, understanding how bond and maintenance charges work can help you compare homes with confidence and avoid surprises later. In this guide, you will learn what a CDD is in Florida, how fees show up on your Marion County tax bill, and how to estimate their monthly impact. Let’s dive in.
What a CDD is in Florida
A Community Development District, or CDD, is a special local government formed under Florida Statute Chapter 190. Its purpose is to plan, finance, build, and maintain community infrastructure, such as roads, water and sewer, and amenity centers. CDDs can issue bonds and levy assessments on properties that benefit from these improvements.
CDDs are different from HOAs and municipal property taxes. CDD assessments are government levies that appear on your county tax bill as non-ad valorem assessments. HOA dues are private fees paid to an association and are billed separately. Property taxes are ad valorem, based on assessed value, while CDD assessments are typically based on benefit to each lot or unit.
Bond vs maintenance fees
CDD assessments generally have two parts. You will often see both listed on the Marion County tax bill for a home in The Villages.
Bond assessment
The bond portion repays the principal and interest on bonds used to build the community’s infrastructure. It is a predictable, annual charge tied to your lot and continues until the bonds are paid off. Some districts allow you to pay off your share in a lump sum, subject to the bond documents and district policy. Any payoff quote comes from the district and may include interest through a date and an administrative charge.
Operations and maintenance assessment
The O&M assessment funds ongoing expenses, such as landscaping, lake and stormwater care, common-area utilities, insurance, and amenity staffing. The district adopts this budget each year, so the O&M amount can rise or fall over time. This charge is also listed on the tax bill as a non-ad valorem assessment.
How fees show on your tax bill
In Marion County, CDD assessments are billed with your property taxes as non-ad valorem line items. If unpaid, they can become a lien and are collected through the county’s standard tax process. During a sale, these assessments are typically prorated like property taxes, so confirm details with your closing agent.
The Villages: what varies
The Villages spans multiple counties and uses multiple CDDs across different phases. In Marion County, each phase can have different bond and O&M amounts. Two similar homes in different neighborhoods may carry very different CDD totals. Always verify the specific parcel’s assessments rather than assuming averages.
Find exact CDD amounts
To confirm fees for a specific home in The Villages, use these steps:
- Check the county records. Search the parcel on the Marion County Property Appraiser site, then review the tax bill view for non-ad valorem assessment line items and the district names.
- Review seller documents. Ask for the most recent tax bill and any HOA or CDD disclosures that show current assessments.
- Contact the district office. Request the adopted budget, current assessment roll, and a bond payoff quote if you are considering prepayment.
- Review recorded documents. The plat or deed often lists the applicable CDD or districts for the lot.
- Ask your title or closing agent. They can confirm assessments, obtain payoff statements, and handle prorations.
Budget the impact
When you price a home, include the CDD in your monthly housing budget.
- Annual total CDD = bond assessment + O&M assessment + any special assessments
- Monthly CDD cost = annual total CDD divided by 12
- Monthly housing budget = mortgage principal and interest + property tax divided by 12 + insurance + HOA + monthly CDD
Example 1: If the bond is $1,800 per year and O&M is $500, the annual total is $2,300. The monthly CDD impact is about $191.67.
Example 2: If the bond is $3,600 and O&M is $900, the annual total is $4,500. The monthly CDD impact is $375.
Use the actual numbers from the tax bill for the parcel you are considering.
Bond payoff options
Some buyers prefer to retire the bond portion up front. If allowed under the bond documents, the district will issue a written payoff statement. Ask whether there are administrative fees, the effective date for interest, and any prepayment conditions. Request your payoff quote early in escrow to keep closing on schedule.
Plan for O&M changes
O&M is set each year during the district’s budget process. It can increase to cover rising service costs or new needs. If you are planning for the long term, consider adding a buffer of 3 to 5 percent per year unless the district’s budget history shows stability. Review adopted budgets for trend context when comparing homes in different CDDs.
Lender and closing notes
Most lenders include the monthly equivalent of CDD assessments in your qualifying ratios, similar to HOA dues. Provide your lender with the current tax bill that shows non-ad valorem assessments and any district payoff statements. At closing, confirm how assessments are prorated and how any past due amounts will be handled, since unpaid CDD charges are enforceable liens.
Quick buyer checklist
Before you offer
- Identify the parcel and review non-ad valorem assessments on the Marion County records.
- Request the most recent tax bill and any CDD or HOA disclosures from the seller.
- Ask which CDDs apply to the lot and get district contact information.
During due diligence
- Ask title to request a bond payoff quote if you might prepay.
- Obtain the CDD adopted budget and assessment roll for your parcel type.
- Ask if any new bonds or special assessments are planned.
Before closing
- Verify prorations and how any past due assessments will be cleared.
- Confirm with your lender how CDD amounts are treated in qualifying.
- Get an updated statement showing current year assessment amounts.
After closing
- Expect CDD assessments on your Marion County tax bill each year.
- Track payment deadlines and plan for possible O&M increases.
Have questions about a specific home in The Villages or how a bond payoff could change your monthly cost? Reach out to Tamara Myers for clear, local guidance tailored to your budget and goals.
FAQs
What are CDD fees in The Villages?
- They are non-ad valorem assessments from a Community Development District that fund infrastructure bonds and ongoing operations and maintenance.
How are CDDs different from HOAs?
- CDDs are governmental assessments on your tax bill, while HOA dues are private fees billed by an association for community governance and services.
Will CDD charges appear on my Marion County tax bill?
- Yes. Bond and O&M assessments usually appear as non-ad valorem line items on the county tax bill and are collected by the tax collector.
Can I pay off the bond portion of my CDD?
- Often yes, if permitted by the bond documents. Request a written payoff quote from the district to confirm the amount and any administrative fees.
Do CDD fees vary across The Villages?
- Yes. Different CDDs and phases carry different bond and O&M amounts, so verify the specific parcel rather than assuming averages.
How do lenders treat CDD assessments?
- Lenders typically include the monthly equivalent of recurring CDD assessments in your housing expense and total monthly obligations for qualification.
Are CDD assessments tax-deductible?
- Tax treatment depends on whether the charge is for capital improvements or O&M and your situation. Consult a qualified tax advisor for guidance.
What happens if CDD assessments go unpaid?
- They can become a lien and are collected through the county’s standard tax process, similar to other non-ad valorem assessments.
