What is Mello Roos?

Mello Roos is a special tax lien on property that is in addition to property taxes. After Proposition 13 was enacted in 1978, the the Mello Roos Community Facilities Act was established in 1982 to provide financing for public improvements and services when no other source of money is available. Improvements can include streets, sewer, police protection, fire houses, cultural art centers, parks and recreation facilities, schools an basic infrastructure. It is usually tied to a bond that eventually will be paid in full, at which time the annual fee will be established to maintain the improvements. The annual charge is determined not by value of the property but by characteristics of the property; square footage of structure, lot size, use of property etc. This determination will also vary depending on the development the property is located in.

Since the Ability to create Mello Roos wasn't formed until 1982, in Orange County you will generally only find Mello Roos in the newer developments as you move inland. Most of the coastal areas were already developed before that time and it is nearly impossible to get a 2/3 majority vote of residents who live within the proposed boundaries to put a Mello Roos in place now.
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