CDDs and Bonds Info

When buying a home in The Villages Florida, it's important to understand the unique aspects of the community. As The Villages FL Real Estate Advisor, I can provide you with valuable information about the Community Development Districts (CDDs) and Bonds that play a significant role in the area. Feel free to reach out to me at 770-312-2982 for any questions or further clarification. 

1. What are CDDs?
The Community Development District (CDD) has both a Bond and Maintenance fees which come in your annual tax bill. You will see sometimes that the BOND is paid or No BOND which means the BOND has been paid off, so your tax bill is cheaper.

The historic side of Lake County (East of 441 & Surrounding Spanish Springs) has no CDD fee.  

The Village of Pine Ridge and Village of Pine Hills also has a Fruitland Park City taxes plus a CDD fee in the annual tax bill.

The Village of Collier and Brownwood Villa Neighborhoods (some areas) and all homes South of HWY 44 have Wildwood City taxes plus CDD fees.
The Villages FL is comprised of 17 special purpose CDDs, each responsible for different functions such as maintenance, recreation, public safety, sanitation, and water and wastewater services.

2. Understanding CDD Bond Payments (annual fee until paid off):
The first part of the CDD is the CDD Bond includes the roads, sewers, street lights, utilities, etc. The newer the home the higher the bond payment. Most bonds are paid with interest being charged over a 30 year period however you will see some homes were the bond is paid in full so in some real estate listings you might see "Bond Paid" or “No Bond”. Sometimes you might see in the real estate listings "Low Bond" which means it has a low bond remaining.
3. Understanding CDD Maintenance Payments (annual fee forever):
The second part of the CDD is the Maintenance payment. This is an amount that is collected every year with no exceptions. This amount varies with the age of the home and location. This amount never goes away. It is used to maintain the common area grass cutting, flowers, trees, lights, road maintenance, retention ponds, sewers, etc. This maintenance fee isn't for your home maintenance at all. The Maintenance fee can change each year and is based on the approved budget.

4. Amenities Fee:
The amenities fee is $189/month per household and is not a part to the CDD fees. This fee covers all of the fun you have here. It pays for the recreation buildings, pools and executive golf courses. The fee covers the purchase of the buildings, maintenance and the staffing. It is tied to the CPI (Consumer Price Index) as the maximum percentage it can be raised per year.5. Real Estate Taxes:
What are the Ad-Valorem Property Taxes?  
The County Taxes, School Taxes and Southwest Water Management District Taxes.

What are the Non Ad-Valorem Fees on the Tax Bill?  
The Fire Fee, CDD Bond, CDD Maintenance, Storm/Wastewater (Marion), Trash (Lake).

Understand that if you purchase a NEW HOME, the first tax bill you receive will only be based on LAND VALUE only plus the Non Ad-Valorem fees.  

The second year tax bill will be substantially higher since all taxes will be based on SALES PRICE of the home purchase.  

To understand the true tax bill for the new home, call Marion, Sumter or Lake County Property Appraiser so they can give you the estimate for the 2nd year tax bill.

Florida residents could apply for Homestead exemption. To apply for Homestead, you must physically live in the home for 6 months + 1 day or more per calendar year! You can only have one Homestead property in the USA. It is approximately a $500 savings to have Homestead on your tax bill annually. If you make Florida your primary residence it could be a very big savings to your pensions, payroll taxes, etc., so consult with your CPA or tax professional.

Summary:
In summary, understanding the CDDs and Bonds in The Villages Florida is crucial when buying a home in the community. The CDD payments, including Bond and Maintenance fees, play a significant role in financing the development and maintenance of the area. The Amenities fee provides access to recreational facilities, and real estate taxes are influenced by various factors. As The Villages FL Real Estate Advisor, I'm here to help you navigate these unique aspects of The Villages Florida. Feel free to reach out to me at 770-312-2982 for any questions or further assistance. Let's work together to ensure you have a clear understanding of how The Villages Florida operates and what to expect regarding these unique fees.