Blog

2
Feb

What is Mello-Roos?

I get asked these Questions ALL THE TIME!!!

Mello-Roos - "What is it?" and "Does the house I want to buy have it?" and "How long will it be on my Taxes?"


Thought I would share what the meaning is......


The Community Facilities Act (more commonly known as Mello-Roos) was a law enacted by the California State Legislature in 1982. The name Mello-Roos comes from its co-authors, Senator Henry J. Mello (D-Watsonville) and Assemblyman Mike Roos (D-Los Angeles). The Act enabled "Community Facilities Districts" (CFDs) to be established by local government agencies as a means of obtaining community funding. Counties, cities, special districts, joint powers authority, and schools districts use these financing districts to pay for public works and some public services.
  
 
A Mello-Roos District is an area where a special property tax on real estate, in addition to the normal property tax, is imposed on those real property owners within a Community Facilities District. These districts seek public financing through the sale of bonds for the purpose of financing public improvements and services. These services may include streets, water, sewage and drainage, electricity, infrastructure, schools, parks and police protection to newly developing areas. The tax paid is used to make the payments of principal and interest on the bonds.
 
The length of the Mello-Roos tax varies from subdivision to subdivision. Fifteen years from the original build date is about average. The payment very rarely extends beyond 30 years or is shorter than 7 years. 


If you are curious if your home has Mello-Roos you can check your Special Assessments on your Property tax bill and look for "CFD".  That is what is considered Mello-Roos. or CONTACT ME TODAY 951.719.6132