The Community Facility Districts (CFD) and Assessment Districts (AD) Administration assists in the establishment of Mello-Roos Community Facilities Districts and Assessment Districts within Riverside County unincorporated areas.
What is a Mello-Roos Community Facilities District?
In 1978, Proposition 13 was enacted by Californians, which limited the ability of many public agencies to finance new projects. In 1982, Senator Henry Mello and Assemblyman Mike Roos affected the passage of the “Mello-Roos Community Facilities Act of 1982” (the Act) authorizing local governments.
How are Community Facility Districts used?
New development requires infrastructure (streets, sewers, storm drains). Local governments are forced to require developers to put in the necessary regional infrastructure for new home developments. The developer then adds the cost of this infrastructure to the price of each new home. The homebuyer pays more for the home, therefore increasing the amount of the mortgage.
Many developers opt for establishing a Community Facilities Districts (CFD) so they can sell the homes at a lower price. Prior to the sale of the homes, they are the only “voters” in the CFD and thus have the power to create the district for future property owners. The CFD has the power to issue tax-exempt bonds to pay for the infrastructure. The cost is then passed on to the homeowner in the form of annual special taxes. Without the CFD, the homebuyer would probably pay more for the home resulting in a higher mortgage would also be paying higher property taxes on the increased cost of the home.
CFD 03-1, CFD 04-2, CFD 05-8 2018, CFD 05-8 2013, CFD 07-2, CFD 89-1, CFD 89-4, AD 168
CFD 03-1, CFD 04-2, CFD 05-8, CFD 07-2, CFD 89-1, CFD 89-4, AD 168
CFD 03-1, CFD 04-2, CFD 05-8 Series 2013, CFD 05-8 Series 2018, CFD 07-2 Series 2015, CFD 07-2 Series 2017, CFD 07-2 Series 2020, CFD 89-1, CFD 89-4
Land-Secured Policy and Acts
Board Policy B-12
Municipal Improvement Act of 1913
Mello Roos Community Facilities Act of 1982
Mello Roos CFD Sequence
Usual Sequence of Events for Mello Roos Community Facilities Districts
Usual Sequence of Events for 1913 Act Special Assessment District After Proposition 218
Summary of Mello Roos Community Facilities Act of 1982
Appraisal Standards for Land-Secured Financings
CFD 05-8 Annexation Application