Mellow Ruse

18 04 2005

In 1978, Californians enacted Proposition 13 that limits many local public agencies ability to finance new projects. In 1982, Senator Henry Mello and Assemblyperson Mike Roose affected the passage of the Community Facilities District Act (CFD). It is a form of financing that can be used by cities, counties, and special districts (such as school districts). CFDs raise money through special taxes tha tmust be approved by 2/3rds of the voters within the district. a CFD is formed to finance major improvements, typically including schools, roads, libraries, police and fire protection services, or ambulance services. The taxesa re secured by a continuing lien and are levied annually against property within the district.

In almost all cases, Mello-Roos special taxes are levied as part of our annual property tax bill. Rarely, a Mello-Roos district may send out its own bill. Mello-Roos Districts are part of California‘s Mandatory Property Tax Disclosure law. Failure to disclose this places the seller in jeopardy of non-disclosure litigation. Bill 1122 has recently expanded the disclosure agreement to include 1915 Act Assessment Districts as well.

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