Do The Villages Have HOA Fees?

Individuals considering a move to The Villages often inquire about Homeowners Association (HOA) fees. While the community does not operate under a traditional HOA model, residents pay various assessments and charges that fulfill similar functions. The financial framework of The Villages is designed to manage and maintain its extensive amenities and infrastructure. This article clarifies the fee structure and financial commitments for residents.

Understanding Fees in The Villages

The Villages does not use a traditional Homeowners Association (HOA) structure or HOA fees. Residents pay mandatory assessments and charges that fund the community’s operations, amenities, and infrastructure. These financial obligations differ from standard HOA fees found in many residential developments.

Residents encounter “amenity fees” and “Community Development District (CDD) charges.” These assessments ensure continuous funding for the community’s facilities and services. The fees support recreational venues, common area maintenance, and public infrastructure. This approach allows for the management and upkeep of the community without relying on a conventional HOA framework.

Components of The Villages’ Fee Structure

Residents in The Villages primarily encounter two main categories of fees: an Amenity Fee and Community Development District (CDD) Assessments. The Amenity Fee is a fixed monthly charge per household, granting access to recreational facilities. These facilities include golf courses, swimming pools, recreation centers, and common area landscaping. This fee is uniform across The Villages, though the exact amount can vary based on the home’s original purchase date and subsequent adjustments. For instance, a recent monthly amenity fee was approximately $195-$199. This fee is adjusted annually based on the Consumer Price Index (CPI), reflecting changes in the cost of living and operational expenses.

Community Development District (CDD) Assessments are annual charges tied to property taxes and appear on the annual property tax bill. These assessments primarily cover the construction and ongoing maintenance of public infrastructure within specific districts, such as roads, utilities, drainage systems, and common area lighting. CDD assessments are divided into two components: a bond portion and a maintenance portion. The bond portion repays long-term tax-exempt municipal bonds, often spanning 30 years, which financed initial infrastructure development. The maintenance portion covers recurring operational costs.

The amount of CDD fees can vary by location within The Villages due to differences in infrastructure costs, original bond amounts, and repayment schedules. Some specific neighborhoods or villa communities may also have additional, separate maintenance assessments. These cover services unique to that area, such as exterior home maintenance or specialized landscaping, and are collected alongside the CDD assessments on the property tax bill. Property taxes, which cover local government services, are separate from these community-specific fees.

How Fees are Governed and Managed

Infrastructure and amenities in The Villages are managed by Community Development Districts (CDDs), which are independent governmental entities. These districts provide for the community’s long-term needs, encompassing services like water management, parks, recreational facilities, and public safety. The governance of CDDs rests with elected Boards of Supervisors, composed of residents, who oversee budgeting, maintenance, and allocation of district funds.

The monthly Amenity Fee is subject to CDD oversight, particularly concerning its use for recreational services and facilities. This fee is set by the Developer and undergoes annual adjustments, indexed to the Consumer Price Index (CPI). The public nature of CDDs ensures transparency, as their meetings are subject to open meeting laws, and their financial records are publicly accessible.

Distinguishing The Villages’ Fees from Traditional HOA Fees

The fee structure in The Villages differs from the model found in traditional Homeowners Associations (HOAs). A primary distinction lies in their governance: Community Development Districts (CDDs) are governmental entities with elected boards, operating under public records and open meeting laws. In contrast, traditional HOAs are private corporations with boards elected by their members, and their operations are not subject to the same level of public scrutiny or transparency.

The scope of services covered by CDD assessments and amenity fees in The Villages is broader than that provided by many traditional HOAs. CDDs are responsible for infrastructure, including roads, utilities, and recreational facilities. HOAs primarily focus on common area maintenance within a specific subdivision, such as landscaping for shared spaces or limited recreational amenities.

Regarding their financial structure, CDD fees include components for bond repayment, which funds large-scale infrastructure, and ongoing maintenance, appearing as non-ad valorem assessments on annual property tax bills. Amenity fees are a uniform monthly charge per household. This contrasts with HOA fees, which are flat monthly or annual charges based on a budget for more limited services. The governmental nature of CDDs allows them to finance projects at lower, tax-exempt interest rates, a benefit not available to private HOAs.