Mello Roos is a California state assessment, that goes toward developing the infrastructure in the surrounding community where a home is bought. Mello-Roos funds provide principal and interest payments for services, which include maintenance for streets, water, sewage, electricity, infrastructure, schools and parks. Mello-Roos is commonly imposed on new community infrastructure, like schools and roads.
Many buyers draw a line in the sand, and say, that they don't want to look at homes that have Mello Roos tax. But, one should look at the bottom line. What will the payment be? Some times homes without Mello Roos are higher priced per square foot. And, some have HOA fees. The only way to compare apples to apples is to compare the monthly payment.