Mello-Roos
Understanding Mello-Roos
When purchusing yournew home, your future monthly payments will be made up of principal, interest, real property taxes, and insurance, but what is the tax for the Commuity Facilities District, otherwise known as a Mello-Roos District?
What is a Mello-Roos District
A Mello-Roos districts an area where a special tax is imposed on those real property owners within a Community Facilities District. This district has chosen to seek public financing through the sale of bonds for the purpose of financing certain 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 you pay is used to make the payments of principal and interest on the bonds. Mello-Roos payments are normally reflected on the property tax bills.
