See the link below to my blog post if you want more detail on the subject. Mello Roos taxes where created by the California legislature in 1982 as the "Community Facilities District Act" as a way to collect more tax revenue from home owners since Prop 13 had put a restriction on runaway property taxes.
The dirty little secret about Mello Roos is that even though the tax is supposed to end on a specific date when a municipal construction project is finished, they can go on forever. Here's an example. A new subdivision is built on the outskirts of town. To serve the new residents of the subdivision, the police department builds a local station and a Mello Roos tax is assessed on all the properties in the subdivision to pay for it. The tax is added as a line item on the semi-annual property tax bill. The plan is to terminate the Mello Roos tax when the station is paid for. But WAIT! There's MORE! Politicians know they can't raise property taxes very much and raising the sales tax within city limits is always unpopular, so they build recurring operating costs for the new building into the Mello Roos funding. Instead of Mello Roos taxes going away as planned, they actually continue for as long as the new police station is in operation.
My point is this - if you research the Mello Roos assessment on a property you are considering buying and see that it should be going away in the near future, don't bet on it. Tax-addicted politicians have ways to make Mello Roos that little bunny rabbit that keeps going and going and going and going....
Please let me know the community you are referencing. Are you talking about the KB home tract on Plum Canyon and Shappell Homes? Mello Roos is a tax that is above the normal tax basis that the builder is passing along to you for certain community amenities. If you would like to speak further inregards to this I would be more than happy to assist you.
Tony & Dani Lewis RE/MAX of Valencia 661-510-7975
You can give me a call to discuss mello roos in depth but briefly here is some basic information. First off mello roos is not a tax it is a bond. It came into existence when Proposition 13 passed and limited property tax to 1% per year of the purchase price. Every home has to pay the same fees that are included in a mello roos bond, however, post proposition 13 many builders needed additional funds to pay local fees. Their solution was to create a mello roos bond that would not violate proposition 13. The mello roos, also call other names, may cover local services and many in Valencia, California may be for a School Bond.
The pros for a mello roos may include somewhat less competition for these homes.
The con is the same money included in the home would gain equity.
Mello roos is paid on the property tax bill and may be paid monthly or twice a year.
Tony Lewis RE/MAX of Valencia firstname.lastname@example.org Cell - 661-510-7975
I would strongly recommend purchasing a home without mello roos, though very difficult to find a newer property in the Santa Clarita Valley without mello roos it is possible. If you have any questions or need some help feel free to visit my website.. http://.www.AlexLAEstates.com or contact me at (661)964-7321 or via email at AlexM@Troop.com :) Good luck!