2 part question.....what is a bond and what are the true costs?
 

I've been looking through the current Villages listings and I keep seeing 'bond paid' or 'bond'.....what exactly is that? Is it a one time thing? If I find a home I want that says 'bond paid' will I ever have another bond on that property?

I'm looking mainly on the historic side, for a nice double wide manufactured home or site built ranch. What are the true costs of owning a home in that area.....knowing that utilities will be different depending on who lives in the home.....are there other expenses besides utilities, insurance, taxes and the monthly Villages fee?

A bond is the price of the infrastructure of the area where you bought. The pipes and electrical, the streets and sewage. In other areas it is part of the price of the home. Here it is separate.

The developer collects the bond and you pay rather high interest on it. You can pay it off at any time or like many of us, pay it yearly thinking you may sell and move somewhere else in The Villages and that makes the price of your home seem lower.

https://www.talkofthevillages.com/fo...e-bonds-94972/

The bond you talk about is what the developer adds on to the cost of a new home....it's for the supposed cost of the infrastructure in your particular district, it is divided by the number of homes in that district....the bond is only paid 1 time....as far as the historic side many of the properties are being bougt up by the developer and new homes are being built there

/////

As far as I know there are no or never have been any bonds on the historical side of The Villages. So if that is the only area you are looking in the bond is not a factor in that area.

The bond amount (cost of water, sewer, curb, gutter, street drains, utility lines, etc.) is in the price of a lot in a development anywhere else, and then it's passed on within the price of the house when sold.

Nothing new about the concept of paying for that.

Thank you. We don't have 'bonds' here so I wasn't familiar with what they actually are.

The bond element is always important to consider, even if it is true that there are no bonds in the historical section. The reason is so that you can make a valid comparison of prices between houses with and without bonds. Consider the bond as a semi-hidden 2nd mortgage on the house. A house listed at 200k, but with a bond of 5k, actually costs 205k, and is thus more expensive than one listed at 202k but no bond.

In the new sections, houses are grouped by "unit". A Village will be made up of several "units" and each "unit" will have hundreds of houses. I believe the bond is the same for all houses in a "unit" and the prices of the houses within a "unit" can vary significantly.

NO, price of the house has nothing to do with the bond!


From the District web site.
What is the Bond Debt Assessment for?

The bond debt assessment reflects each lot’s proportionate share of the cost of building the infrastructure within its District or for which its District has responsibility. It is the most equitable method of distributing costs between the properties that benefit from the infrastructure. Infrastructure includes storm water systems, underground pump stations, water retention areas, curbs, gutters, streetlights, transportation trails, underground piping, etc.

How does the District arrive at the amount? Does everyone pay the same amount?

The Bond Debt Assessment was set at the time the bond used to build the infrastructure was issued. The formula for calculating each lot’s proportionate share starts with the total cost of the bond (including interest) issued to pay for the infrastructure. That cost is divided equally among each assessable acre in the “phase” of the District for which the bond was issued. That gives you a cost per acre. The cost per acre is then multiplied by the number of acres in the unit in which you live. That gives you the obligation for the unit as a whole. The unit total cost is then divided by the number of lots or parcels in the unit, and that computation gives you the amount of the assessment levied against each property. Therefore, each lot within a unit pays the same amount. Amortization schedules for each unit are located on the Districts' website; Village Community Development Districts under the Finance Department link.

What is this premium? The fact that the lot may be on a golf course, a corner lot?
What is this add-on?

the bond is the same for every home in the particular unit, neighborhood....

if you have a 500k house on the golf course or a 150k interior house, large lot, golf cart lot, 3 car garage, ect.....non of that matters.

every home in that unit pays the exact same bond amount and maintence fees....

This is close but may not be precisely accurate.

The price of the bond on new homes is;

Premiers 50K
Designers 24K
Cottages and villa's 14K

And the explanation above that Bogie Shooter gave is correct.

Bogie Shooter is ALWAYS correct.

AND so is KStew when he said that every home in the unit pays the same.

Your bond amounts are just estimates. It depends on what district the house is located.

BTW I am not always right.............................
Your bond amounts are just estimates. It depends on what district the house is located.

There is a lot of information at the Villages Community Development District Web Site. Search VCDD or bond to find info. A very helpful excel spreadsheet was posted that will show you an example of what the costs add up to.

We can add recreation centers, swimming pools, executive golf courses, mail stations, tennis/pickleball courts and on and on to the list of what our bond and continued monthly maintenance fees pay for.

Not part of your bond.

those are not in the bond... totally different fees.......they are in the ammenity fees..presently $147 per month....

The ammentiy fees can go up yearly,

the bond total fee will never change..you either pay it off when you buy or fiance it for 30 years..

The o.p. asks about the residential bond (which covers each home's portion of infrastructure cost in the residential "unit"/allotment" where the home is).

All the amortization schedules of a "unit" of homes can be seen here:

Amortization Schedules - Sumter

An example for a unit of villas is below. Shows interest rate at the bottom. Annual amount is billed with your county property tax.

http://www.districtgov.org/departmen...l%20Villas.pdf

RESIDENTIAL Bond FAQ's:
VCDD Bond FAQs

I just scanned 44 pages of VCDD budget. I stand corrected...and have a headache :)

There is also an annual maintenance assessment to support the infrastruture. Presumably this can go up with time.

Its all under the Finance Department page.

Different infrastruture.....................not residential infrastruture.

Thank you everyone, my questions have been answered.

You can add them, but you would be wrong.

Those amenities are covered by your monthly amenity fee. There is a lot of misinformation about bonds in this thread. See Bogie Shooter's above quote from the District website for an accurate description. In defense of the erroneous posts, the system here is really complicated.

O.k. so maybe they weren't totally answered. So, there is no bond in the historic section, just the monthly amenity fees. Do I understand everything correctly then that if we buy on that side the only expenses we would have is the amenity fees to TV, insurance, taxes and utilities?

you got it.......
only the $147 ammenity fees...

No Bond or maintenance fees......saves a bunch

This is true of any Villages property in Lake County, not just that in the historic section on the east side of 441/27.

Thank you :)

Thank you too, I will keep this in mind as we search.