The following is copied from Fidelity Title Company article -
What is Mellow Roos - When Proposition 13 passed in 1978, it severely limited the ability of local governments to use property taxes to construct public facilities and services. As a result, Californians were forced to find new ways to fund public improvements in their respective locales. The
Mello-Roos Community Facilities Act of 1982 was co-authored by Senator Henry Mello of the Monterey area and Los Angeles assemblyman Mike Roos. Enacted by the California legislature, the Act enabled â€œCommunity Facilities Districtsâ€ (CFDâ€™s) to be established by local government agencies as a means of obtaining this crucial community funding. Today the colloquial name for the Facilities Act of
1982 is simply â€œMello-Roos.
How much is it- Mellow Roos from one area is different from the other -
â€This will vary from one CFD to another. Typically, an adopted formula that relates to the size of the home (square footage or lot size) is used to determine the amount of an individual assessment. In general, the special taxes and assessments do not exceed 1% to 1.5% of the market value of new homes. Moreover, the total amount of all annual taxes (including property tax) usually does not exceed 2% to 2.5% of the
homeâ€™s market value"