Jeff’s Carlsbad Blog for First Time Home Buyers


FAQs – Part 4 (Mello-Roos)

Posted in FAQs,Financial by Jeff Dowler on October 24, 2006
Tags: ,

What are Mello-Roos?

Well, what the heck is that? First time I saw this in the MLS when I started my California home search back in Boston, and it said “no Mello-Roos.” I wondered what was missing? Was this a good or bad? I had never seen a Mello-Roos before; was it unique to Southern California? Do they import them? Or do they grow wild?

Mello-Roos is a fee you sometimes have to pay in newer subdivisions (often in undeveloped areas) where a Community Facilities District (CFD) has been created. The CFD allows for financing to cover the costs of certain improvements (e.g., streets, sewers and other basic infrastructure, police and fire protection, ambulance services, schools, parks, museums, etc.). The Mello-Roos, a special tax, is collected from each resident in order to pay off the financing; the tax is not based on the value of the property. And these fees can be in addition to a Home Owner’s Association (HOA) fee, so keep this in mind when you are calculating your budget for your new home. The good news is that the Mello-Roos will stop in the future once the bond (if issued) is paid off, although sometimes a reduced fee may be levied to cover the cost of maintaining the improvements.

BTW the name comes from the co-authors of the Mello-Roos Community Facilities Act of 1982, Senator Henry Mello and assemblyman Mike Roos.

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4 Responses to 'FAQs – Part 4 (Mello-Roos)'

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  1. […] you are not clear on what Mello Roos are, see my previous post on “What are Mello Roos?” Generally if there are Mello Roos fees on a property it will be noted in the MLS. But […]


  2. […] Mello Roos – some areas (especially new subdivisions) will levy additional fees called Mello Roos. Again, not avoidable and they can last for years. Check with an accountant regarding tax deductibility. […]


  3. […] interest, taxes and possibly homeowner’s insurance), condo or HOA fees (in some cases), Mello-Roos (again in some cases here in California), and more. You should already know about getting […]


  4. […] Mello Roos – some areas (especially new subdivisions) will levy additional fees called Mello Roos. Again, not avoidable and they can last for years. Check with an accountant regarding tax deductibility. This entry was posted in Financial, Homeownership, Taxes and tagged buyers, fees, Financial, first time buyers, HOA fees, Insurance, money. Bookmark the permalink. ← San Marcos Communities to Consider What Will YOU Trade Off When Buying Your First Home? → […]


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