Local Improvement Districts, or more commonly known as LIDs, are fees for things like street lights, sidewalks, sewers and water that is brought to a previously undeveloped area. The LIDs are charged by the local government providing the work and typically passed on to the builder. In some cases these fees are simply priced into the cost of the home, however if you live in a highly competitive real estate market, don't be surprised if these fees are billed directly to you so that the purchase prices of the homes can be kept down. LIDs are typically billed twice a year and will most likely remain in place for the term of your home.

Just like unpaid HOA fees, property taxes and mortgages - unpaid LIDs can result in an attempt to foreclose on your property for unpaid dues.

Similar in Nature are: SIDs or Special Improvement Districts.