Mello-Roos is a special property tax used by certain California communities (CFDs) to fund public improvements like schools, parks, roads, and fire stations. If you’re considering a home in a newer development, understanding this tax helps you budget accurately and compare neighborhoods with confidence.
What is Mello-Roos?
Authorized by the Mello-Roos Community Facilities Act of 1982, local governments can form Community Facilities Districts (CFDs) to finance public infrastructure and certain services. Homeowners inside a CFD pay an annual special tax in addition to regular property taxes.
What does Mello-Roos pay for?
- Public schools (classrooms, facilities, expansions
- Parks, open space, trails, and recreation amenities
- Fire stations and certain public-safety infrastructure
- Roads, utilities, sewers, and related improvements
How much is it & how long does it last?
Amounts vary by district—some are a flat annual sum, others scale by lot size or square footage. It’s billed with the county property-tax statement and can range from a few hundred to several thousand dollars per year. Many districts run 20–40 years; always confirm the current annual amount and the remaining term before you commit.
Pros & cons for buyers
Potential benefits
- Access to newer schools, amenities, and infrastructure
- Often associated with well-planned neighborhoods
- Community services sized for growth
Potential trade-offs
- Higher total housing cost vs. similar homes without CFD taxes
- Buyer sensitivity at resale in some markets
- Obligation persists while the CFD remains in effect
Buyer checklist
- Request the “Notice of Special Tax” for the property.
- Ask the remaining term and whether assessments can adjust.
- Have your lender include Mello-Roos in monthly ratios.
- Compare homes in and out of CFDs to understand trade-offs.
Broker Heath Guidance: I verify special-tax obligations early so buyers see the full picture—before inspections and appraisal. If you’re weighing neighborhoods with and without Mello-Roos, I’ll walk you through a side by side comparison.
Disclaimer: Educational information only—not tax, legal, or lending advice. Confirm amounts/terms with the County Tax Assessor, your lender, and a qualified real estate professional.