What is a Mello-Roos?
When California Proposition 13 passed in 1978, it severely limited the ability of local governments to use property taxes to construct public facilities and services. As a result, new ways to fund public improvements in respective locales were considered. Community Facilities District Act (more commonly known as Mello-Roos) was a law enacted by the California State Legislature in 1982. The name Mello-Roos comes from its co-authors, Senator Henry Mello (of the Monterey area) and Assemblyman Mike Roos (of Los Angeles). The Act enabled “Community Facilities Districts” (CFDs) to be established by local government agencies as a means of obtaining funding for public improvements and services. A Mello-Roos District is an area where a special property tax on real estate, in addition to the normal ad valorem property tax, is imposed on those real property owners within the Community Facilities District. These districts seek public financing through the sale of bonds for the purpose of financing
