Understanding CDD Bonds in The Villages
If you're exploring homes in The Villages, you may come across something called a Community Development District (CDD) bond, and it often catches buyers by surprise.
This bond is not a tax, but rather a one-time infrastructure fee that was originally used to fund critical improvements in the neighborhood, such as roads, water and sewer systems, storm drainage, and lighting. It allowed the community to be developed without increasing taxes for the broader population, while ensuring that new homeowners contributed to the cost of that development.
The CDD bond is tied to the property, not the individual homeowner. If the bond hasn't been paid off, it will transfer to the next buyer at closing and become part of their annual property tax bill.
Some homes have had the bond paid off in full, while others still carry a balance. That remaining balance is typically amortized and paid down over time through yearly installments. Depending on the location, the size of the lot, and the age of the home, the amount of this bond can vary widely, from a few thousand dollars to over $30,000 in some cases.
There is also a maintenance portion of the CDD assessment that remains in place even after the bond has been satisfied. This helps cover ongoing costs for things like landscaping, irrigation systems, common areas, and stormwater management.
Tip: Always review the CDD bond balance before making an offer. It can impact your monthly expenses and your total long-term cost of ownership.
If you're unsure where to find this information or what questions to ask, I’m here to help. I will walk you through it, review the details with you, and make sure you’re well-informed every step of the way. Let’s take the stress out of the unknown; just reach out anytime.