What are Mello Roos and Special Assessments?


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I often hear buyers say: I don’t want to pay any Mello Roos. Immediately, I wonder if they know what Mello Roos are. It’s important that you know how these details will affect the home buying process, especially because Mello Roos are more common than you might think.

Mello Roos: What are They?

Let me define them: Mello Roos are essentially bonds or loans taken out by the developer. The developer may go to the city and request to build some homes, and the city agrees – but they tell the builders: you are going to put in a school, roads, street lights, gutters, utilities, water, etc. By the way, you are going to pay for all of that.

So, builders got smart and decide to take out a loan for all these items. Then the costs are passed along to the homeowners. Mello Roos and/or special assessments are just loans: these loans are taken out by the builders, and they in turn pass them onto the homeowners.

It’s common for the newer communities have Mello Roos. Sometimes, older neighborhoods have these taxes as well.

What You Need to Know

Usually these loans are paid off in a range of 20 – 35 years. You would need to check with the tax collector for details. But, just know, most homes in our area either had at one time or currently have Mello Roos or special assessments. So, they are something we need to contend with. If you are thinking about buying a home, you should always check for special assessments so you know how they will impact your cost.

Do you need more information about a home you want to buy? Whether you are just beginning your search for a new home, or you’ve already found a property you love, I am here to assist. As a real estate agent, I work hard to help my buyers get the best deal on their home purchase. I also have experience helping sellers maximize their equity.

If you need help buying or selling a home, contact me any time. Call, text, or email to talk to a local real estate expert: (951) 473-0390 or cthomas@epdre.com.