Let's say that plans for a new high school are approved in your Community Facilities District (CFD), somewhere in San Diego County. Tax-exempt municipal bonds would then be issued to finance the construction of the school. Over time, these public bonds would be repaid through a special tax called Mello-Roos on properties that benefit from the new high school. This tax is typically added to the area's property tax bills over a 20-25 year period (and then ends). Commercial and industrical property owners are also subject to Mello-Roos taxes. All proceeds raised from Mello-Roos taxes must be used only to fund the specific public facilities or services that were authorized in the specific CFD. Sometimes, San Diego home builders will pre-pay the Mello-Roos tax up front, so there is no Mello-Roos for the individual homeowners in that specific community (However, the builder will need to raise the home prices in order to cover this expense. Either way, the homeowners pay for it.).
Read Also: FAQ: How much does Mello-Roos tax cost?
Read Also: FAQ: Where did Mello-Roos come from?
Justin Gramm is the founder and principal broker of Globella Buyers Realty, your San Diego Exclusive Buyer Brokerage. He also writes this blog, "For San Diego Home Buyers."
Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home. They are specialists at representing buyers only on the buyers' side of the transaction. Exclusive Buyer Agents work to get buyers the best price and terms when they buy a home.
If you have excellent credit and plan to buy a home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. Call Justin at (858) 437-2662 or E-mail.