The Bond Is a Government Tax — Not an HOA Fee
The Villages was developed using Community Development Districts (CDDs) — a Florida government mechanism that allows large-scale developers to issue municipal bonds to fund the infrastructure required to build a community. Roads, water systems, utility lines, and common area improvements were all funded through these bonds when each village was built.
When the developer sells a home in a CDD, the infrastructure cost is not hidden in the purchase price — it is disclosed as a separate outstanding bond balance that transfers with the property. When you buy a resale home in The Villages, you are assuming responsibility for whatever principal balance remains on the CDD bond that was originally assessed against that property. It shows up on your annual property tax bill, not in your HOA dues.
This is the single most important thing buyers miss when they first look at The Villages. A home listed at $350,000 does not cost $350,000 if it carries a $28,000 CDD bond. The real cost is $378,000 — and if you finance, you are financing the home price while the bond sits separately as an ongoing annual payment. You need to account for both.
Key fact: The CDD bond is a legal obligation assessed against the property by a government entity. It cannot be waived, forgiven, or negotiated out of existence by the buyer or seller. It must either be paid off at or before closing, or assumed by the buyer as an ongoing annual payment added to the property tax bill.
How Much Is the Bond, and Where?
Bond balances are not uniform across The Villages. They vary based on when a village was built (earlier villages have had longer to pay down the bond), how much the previous owner paid down, and which CDD district covers the specific property. The following ranges are typical as of 2026 — always verify the exact balance on any property you are considering.
Do not rely on zone estimates for a specific purchase decision. The ranges above are general guides. The actual bond balance on any specific property is available from the applicable CDD district office or from your title company during the due diligence period. Get the exact number before you make an offer, not after.
Two Options: Pay It Off or Assume It
When you buy a resale home in The Villages, you have two options for handling the remaining CDD bond balance. Your choice affects your closing costs, your monthly payment, and your total cost of ownership.
Option A — Pay Off the Bond at Closing
The remaining balance is paid in full at closing, typically from sale proceeds (if the seller agrees to cover it) or from the buyer's cash. Once paid off, the CDD charge disappears from the annual property tax bill entirely. Many buyers negotiating in a softer market request that the seller pay off the bond as a condition of the sale.
Option B — Assume the Bond (Annual Payments)
The remaining principal stays on the property and the buyer assumes the ongoing annual payments. These payments appear as a line item on the annual property tax bill — typically $1,200–$2,400 per year depending on the remaining balance and interest rate. Payments continue until the bond is retired.
Negotiation Leverage
In a buyer's market or on a home that has been sitting, asking the seller to pay off the bond at closing is a reasonable negotiating position. The seller typically has equity in the property and can use sale proceeds to retire the bond. A good buyer's agent who knows The Villages market will build this into the negotiation where appropriate.
What the Bond Costs — Monthly and Annually
Example: South-of-466 Home, $18,000 Remaining Bond Balance
Example figures are illustrative. Actual bond amounts, interest rates, and remaining terms vary by property and CDD district. Verify with your title company before closing.