CDD and Bond Fees in The Villages Explained

Confused by the CDD and bond lines you see when looking at homes in The Villages? You are not alone. These charges are unique to communities built with special districts, and they can affect your monthly budget and your closing. In this guide, you will learn what these fees are, how they show up on your Marion County tax bill, and the exact steps to research them for any home in The Villages. Let’s dive in.

What a CDD is

A Community Development District, or CDD, is a special-purpose local government created under Chapter 190 of Florida law to plan, finance, build, and maintain neighborhood infrastructure and amenities. Think roads, water and sewer, stormwater, landscaping, recreation, and similar systems. CDDs often issue bonds to fund these improvements during development. The Villages uses multiple CDDs, so fees and structures can vary by neighborhood and by phase of the community.

Two types of CDD assessments

Operating and maintenance

Operating and Maintenance assessments, often called O&M, are the annual charges that cover a district’s day-to-day costs. These include maintenance, utilities, administration, insurance, and routine repairs. O&M assessments are typically billed once per year and appear as a non-ad valorem line on your property tax bill.

Bond or debt service

Bond or debt service assessments repay the bonds that financed major infrastructure. These assessments follow a set schedule defined by the bond documents and can last for many years. On your tax bill, you may see a separate line for debt service or bonds in addition to O&M.

How fees show on your tax bill

In Marion County, most CDD assessments are collected by the Tax Collector as non-ad valorem charges on the annual property tax bill. You will usually see separate lines that identify the district and the type of assessment, such as O&M and Debt Service. These assessments are enforceable liens on the property and are collected in the same cycle as your real estate taxes.

What to check before you buy

Before you write an offer or remove contingencies, verify the following:

• Current and prior tax bills. Review the most recent Marion County tax bill, and consider checking the prior year as well, to confirm the line-item amounts for CDD O&M and debt service.
• Whether the parcel has bond debt. Not every home carries the same bond schedule. Confirm whether the property is still subject to ongoing debt service, or if it has been prepaid.
• Planned or supplemental assessments. Ask if the district has any special or supplemental assessments planned or recently levied that could affect the parcel.
• Title and payoff items. Your title commitment and closing package should identify recorded special assessment liens. Make sure any outstanding amounts, prorations, or payoffs are clearly allocated in the contract and settlement statements.

How assessments affect affordability

CDD assessments are part of your real cost of ownership. Lenders usually require disclosure of recurring assessments and may include them in your housing expense calculations. Policies vary by lender and loan program, so talk with your lender early and have them factor CDD O&M and bond assessments into your pre-qualification. Because bond assessments can be significant and long-term, they may affect your monthly budget and approval amount.

Selling a home with CDD assessments

If you are selling, the assessments attach to the property rather than the owner. At closing, you and the buyer typically prorate the current year’s assessments the same way you handle property taxes. Some buyers assume the seller will pay off the bond at closing, while others expect to continue the annual payments. Avoid guesswork. Spell out who pays what in the purchase contract, and make sure the final closing statement reflects the agreed prorations or any bond payoff.

Paying off or prepaying the bond

You may be able to pay off your bond assessment, but the process and costs depend on the specific bond’s terms. Bond documents set the rules for prepayment, optional redemption, and any penalties. If you want to explore a payoff, request an official payoff statement from the CDD or its bond trustee. Timing matters because payoff figures are date-specific, and some bonds can only be redeemed on set dates.

Risks if assessments go unpaid

Non-ad valorem assessments carry a statutory lien. If they are not paid, the county can use collection methods similar to tax certificate sales or foreclosure, depending on local procedures and the bond documents. Before closing, confirm there are no unpaid assessments, pending collections, or special assessments that could follow the property.

Research a property step by step

Use this checklist to get clear on CDD and bond details for any home in The Villages within Marion County:

1. Identify the CDD. Look up the parcel on the Marion County Property Appraiser to find the district name or number. Ask the listing agent or seller for the CDD information as well.
2. Pull the tax bill. Review the current year’s Marion County Tax Collector bill for the parcel. Note the non-ad valorem lines for CDD O&M and Debt Service and compare to prior year amounts.
3. Review district documents. Ask the CDD manager or district office for the current budget, assessment roll, and any engineer’s reports. These show how O&M is set and which parcels are assessed.
4. Check bond disclosures. Official Statements and continuing disclosures list the bond principal, payment schedule, and prepayment terms. Many districts file disclosures on EMMA, which is the municipal bond repository.
5. Contact local partners. The Tax Collector can confirm billing and collection. The Property Appraiser can verify parcel coding and district identifiers. Your title company can help with recorded lien items, payoffs, and how assessments are handled at settlement.
6. Request a payoff or certification. If you plan to prepay, ask the district or bond trustee for a payoff letter. If you just need confirmation of amounts for closing, request a certification of assessments. Build in lead time because these requests can take several business days.

Common misunderstandings

• CDDs are not HOAs. A CDD is a special-purpose local government with assessment authority under state law. An HOA is a private association created by covenants and bylaws. A property can be subject to both.
• Title searches have limits. Title commitments will show recorded liens but may not list future annual assessments. Always check the tax bill and district documents for current and upcoming amounts.
• Assessments change over time. O&M budgets are set annually, and districts can refinance or issue additional bonds. Do not assume today’s amounts will stay the same forever.

Why work with a local guide

Every phase of The Villages can have a different district, bond schedule, and assessment method. That is where a local expert helps. With 20 plus years of community experience and hands-on closing support, you get clear answers on costs, timing, and how to structure a clean contract. If you want a walkthrough of a specific parcel’s CDD and bond lines, reach out for a quick review and a tailored plan.

Ready to make sense of CDDs, bonds, and your next move in The Villages? Contact Unknown Company to talk through your goals, see current assessments for your target homes, and Get Your Free Home Valuation.

FAQs

How CDD fees appear on Marion County tax bills

• Most CDD O&M and bond assessments appear as separate non-ad valorem lines on the annual Marion County property tax bill.

Whether CDD assessments end when a home is sold

• The assessments stay with the property. At closing, buyer and seller usually prorate the current year, and the new owner assumes the ongoing assessments.

If you can prepay a CDD bond in The Villages

• Possibly. Prepayment depends on the specific bond’s redemption terms. Get an official payoff from the district or trustee before you plan to pay.

How CDD assessments affect mortgage approval

• Lenders treat recurring assessments as part of housing costs, and treatment varies by lender and program. Have your lender include CDD amounts in pre-qualification.

The difference between a CDD and an HOA

• A CDD is a governmental district that levies special assessments under Florida law. An HOA is a private association governed by covenants. A home can be in both.

How to find exact CDD amounts for a home

• Check the Marion County tax bill for non-ad valorem lines, confirm the district via the Property Appraiser, and request district documents or a certification of assessments for the parcel.