What are Mello Roos?

Community Facilities Districts (CFDs), more commonly known as Mello-Roos, are special districts established by local governments in California as a means of obtaining additional public funding. Counties, cities, special districts, joint powers authority, and school districts in California use these financing districts to pay for public works and some public services.

Due to the cap on property tax increase by California Prop 13 CFD can be assessed with 2/3 of the voters within a proposed district. Most districts are passed with only one vote, the developer of a new build community.

What do mello Roos cover? Mello-Roos community facilities districts may pay for the following public improvements and services: streets, water, sewage and drainage, electricity, infrastructure, schools, parks and police protection to newly developing areas.

Mello Roos can be repealed based on prop 218 but a larger topic for another video.