What Is a Community Development District (CDD)?
A community development district is a small, special-purpose local government created under Chapter 190 of the Florida Statutes to pay for and manage basic services and infrastructure for a community. State law defines it as "a local unit of special-purpose government" (F.S. 190.003). The Legislature created CDDs as a way to manage and finance services like roads and water systems for new communities. A CDD has no zoning or permitting power (F.S. 190.002).
A few basics:
- A five-member board of supervisors runs it. At first, landowners elect the board, with one vote per acre. Over time, once enough residents live there, seats shift to board members elected by the district's registered voters (F.S. 190.006).
- It can borrow money with bonds to build roads, drainage, and other public facilities, and repay them with assessments on the homes that benefit (F.S. 190.021).
- It must disclose its financing. The district must make information about its public financing available to residents and buyers and record it in the county property records (F.S. 190.009).
The Villages is served by a group of community development districts (districtgov.org).
Bond Assessments vs. Maintenance Assessments
Both appear once a year on your county property tax bill, in the "non-ad valorem assessments" section, but they pay for different things.
- Bond assessments (state law calls them benefit special assessments) repay the money borrowed to build the district's infrastructure. They are paid in yearly installments until the bond is paid off (F.S. 190.021(2)).
- Maintenance assessments pay to run and maintain the district's facilities each year (F.S. 190.021(3)).
Under state law, both are a lien on the property until paid, and are collected and enforced like county taxes (F.S. 190.021).
What The Villages districts say. The districts' FAQ explains that the community's infrastructure was built with tax-exempt bonds, repaid through the county tax bill as a "Bond Debt Assessment" in the non-ad valorem section. It says bond assessments repay the cost of roads, tunnels, multi-modal paths, and water systems. Maintenance assessments pay for operating and maintaining district property, such as electricity, mowing, repairs, and insurance. Maintenance assessments are calculated unit by unit, so each unit has a different amount (district FAQ).
Paying off a bond. In The Villages, you may pay off your bond assessment at any time, but you don't have to. The timing affects whether a bond assessment shows on that year's tax bill. The districts' finance page lets you look up the recorded payment schedule by county, district, and unit. As of October 2026, it says Districts 1 and 2 have no outstanding bond assessments (district finance and bonds page). Call the district for an exact payoff figure.
Why Homestead Doesn't Lower These Assessments
Non-ad valorem assessments are not based on your home's value, so a homestead exemption doesn't reduce them. Florida law defines them as assessments "not based upon millage" (F.S. 197.3632). The Miami-Dade Property Appraiser describes a non-ad valorem assessment as a charge "not based on the value of the property" and names community development districts as one source of them (Miami-Dade Property Appraiser).
The homestead exemption lowers the taxable value used for regular property taxes. The Florida Department of Revenue says it can lower a home's taxable value by as much as $50,000 (Florida DOR). Florida voters will also decide on a homestead proposal, Amendment 3, on November 3, 2026. Read our Amendment 3 guide for details.
Monthly Amenity Fees
An amenity fee is a regular charge for shared facilities, separate from the tax bill. In The Villages, the districts say amenity fees are billed monthly along with water, wastewater, and trash pickup. They cover community-wide facilities such as recreation centers, neighborhood pools, golf courses, sports fields, dog parks, and safety services including fire protection and Community Watch (district FAQ).
The districts also say amenity, water, sewer, irrigation, and sanitation fees are charged year-round, whether or not the home is occupied (district FAQ). That matters if you plan to spend summers elsewhere.
Fee amounts can differ by area and change over time, so ask the district for the current amount on the specific home.
HOA Fees
A homeowners association (HOA) is a private association, not a government, and it may charge its own dues. Some communities have a CDD and an HOA, some have only one, and some have neither.
Florida law gives you two helpful tools:
- Disclosure summary. If membership in an HOA is required, the seller must give you a disclosure summary before you sign the contract. It covers dues, special assessments, and recorded covenants (F.S. 720.401).
- Estoppel certificate. This lists the regular assessment, what has been paid, and any amounts owed. The association must issue it within 10 business days of a request from the owner or the owner's designee (F.S. 720.30851).
How to Look Up the Charges on a Specific Home
Every home is different, so check the real numbers for the address you're considering.
- County tax collector. Look up the most recent tax bill. The non-ad valorem section lists district assessments and other special charges. Sumter: sumtertaxcollector.com. Lake: laketax.com. Marion: mariontax.com.
- County property appraiser. Find the parcel record, the city and county, and exemptions. Sumter: sumterpa.com. Lake: lakecopropappr.com. Marion: pa.marion.fl.us.
- The district's website. Look for the budget, assessment information, and bond payment schedules. In The Villages, use districtgov.org.
- The state's list of special districts. FloridaCommerce keeps the Official List of Special Districts, with each district's official website.
- The HOA, if there is one. Ask for the disclosure summary, budget, and an estoppel certificate.
Keep in mind that the tax bill you see may not match yours. The Florida Department of Revenue explains that after a sale, the previous owner's exemptions are removed and the home is reassessed as of the next January 1 (Florida DOR, PT-107).
Questions to Ask Before You Buy
- Is the home in a community development district? Which one?
- What were the bond and maintenance assessments on the latest tax bill?
- Is there a remaining bond balance? What is the payoff amount, and when does the bond end?
- What is the monthly amenity fee, and what does it cover?
- Is there an HOA? What are the dues, and are any special assessments planned?
- Which fees continue if the home sits empty for part of the year?
- What is the district's budget for the coming year?
A licensed real estate attorney, title company, or tax professional can help you review documents before you sign. To compare locations within a community, see our guide to choosing a neighborhood.