GLOSSARY — REAL ESTATE TERMS
Mello-Roos
Mello-Roos is a special tax assessed on properties within a designated California Community Facilities District, used to fund infrastructure like schools, roads, and utilities in newer developments, in addition to regular property tax.
How Mello-Roos works
Named after the 1982 legislation that created it, Mello-Roos allows local governments to form Community Facilities Districts and issue bonds to fund infrastructure for new development -- schools, roads, sewer systems -- with the bonds repaid through a special tax on properties within that district, separate from regular Prop 13 property tax.
How long it lasts and how to check for it
Mello-Roos assessments typically run 20 to 40 years until the bonds are paid off, and the amount is disclosed to buyers before closing. Newer planned communities are more likely to carry a Mello-Roos assessment than established neighborhoods, and it's worth checking specifically since it doesn't show up in a simple property tax rate the way base tax does.
WHAT TO DO IF A PROPERTY HAS MELLO-ROOS
- Check the current property tax bill for a listed Mello-Roos line item
- Ask how many years remain on the assessment before it's paid off
- Factor the annual amount into your total monthly housing cost comparison
- Confirm the disclosure amount matches what's on the actual tax bill
Is Mello-Roos the same as regular property tax?
No -- it's a separate special assessment on top of regular Prop 13-based property tax, specifically tied to financing infrastructure in that district.
Does Mello-Roos ever go away?
Yes -- it ends once the district's bonds are fully repaid, typically 20 to 40 years after the district was formed, though the exact timeline varies by district.
How do I find out if a property has a Mello-Roos assessment?
It's disclosed in the seller's disclosures and can also be confirmed by checking the property tax bill or contacting the county assessor's office directly.