A common question I am asked regarding Mello Roos taxes is,
- New schools, parks, recreation centers, etc can be built and funded using the revenue generated from the Mello-Roos income.
- More housing inventory will be created when undeveloped locations are built up.
- Generally speaking, low crime rates and highly desirable new schools are common in Mello-Roos communities.
- Cost of housing may be increased because of the tax, possibly limiting the number of prospective buyers when it comes time for resale.
- Maintenance of the improvements could be more costly than anticipated.
A Brief History of Mello-RoosThe term Mello-Roos was derived from the names of its co-authors, Senator Henry Mello and Mike Roos. It is also generally termed as the Community Facilities District Act (CFD). The CFD started when people in California voted for Proposition 13 in 1978 to limit property taxation. Therefore, new initiatives were considered to finance public constructions and improvements. In 1982, the California State Legislature made Mello-Roos legitimate.