Stephanie, HOA fees are considered Home Owner's Association fees and they are required based on community where you purchasing your home. HOA's support the community by creating by-laws that could encompass some of the following: Color of Homes, Yard Maintenance, Community Common Area Maintenance and the like. Since you will be paying HOA fees on a monthly or quartely basis depending on the community structure those fees will go towards maintaining the community in order to keep continuity between owners and maintain property values.
The Mello-Roos Community Facilities Act of 1982
The Act allows any county, city, special district, school district or joint powers authority to
establish a Mello-Roos Community Facilities District (a â€œCFDâ€) which allows for financing of
public improvements and services. The services and improvements that Mello-Roos CFDs
can finance include streets, sewer systems and other basic infrastructure, police protection,
fire protection, ambulance services, schools, parks, libraries, museums and other cultural
facilities. By law, the CFD is also entitled to recover expenses needed to form the CFD and
administer the annual special taxes and bonded debt.
Why is a Mello-Roos CFD Needed?
A CFD is created to finance public improvements and services when no other source of
money is available. CFDs are normally formed in undeveloped areas and are used to build
roads and install water and sewer systems so that new homes or commercial space can be
built. CFDs are also used in older areas to finance new schools or other additions to the
Hope that helps...good luck...