HELP!! Need help with Preserves HOA & Fees (Chino, Chino Hills: sales, HOA fees)

[JUSTINWIFEY]

My husband and I are looking into buying at the Preseves (Thetherwind), and we do not understand all these fees. HOA I get, but as far as CFD/Mello, Preporty tax and all the other I am confused. Can someone explain to me what exactly I am looking at regarding fees and roughly an estimate monthly what these fees will cost.

Thank you

[Fighter 1]

Originally Posted by JUSTINWIFEY

My husband and I are looking into buying at the Preseves (Thetherwind), and we do not understand all these fees. HOA I get, but as far as CFD/Mello, Preporty tax and all the other I am confused. Can someone explain to me what exactly I am looking at regarding fees and roughly an estimate monthly what these fees will cost.

Thank you

CFD /Mello are special taxes paid for the fire district and for the cost of street , sewer and any other stupid taxes the city/ county wants you to pay for the privilege of living in that development and property taxes everyone pays. As to cost they are a lot more then its worth to live in that area.

[JUSTINWIFEY]

Thank you...The places are nice and new but the more we crunch the numbers the more I do not think it is a good choice. As first time home buyers you try so hard to make the right decision and I wish I knew if buying there would be the right one.

[Donn2390]

Mello Roos was devised a number of years ago to make the home cheaper to purchase, or to make it appear cheaper.. It pays for schools, roads, sewer, etc. It used to be all of those costs were added into the sales price. By breaking out the cost, the home appears cheaper. They do have an expiration date, some 20 years, most 30 years. So if you purchase a 15 year old home, you only owe 15 more years on Mello Roos...
You always pay the same for the house, they either get you coming in the front door, or going out the back door.
Your realtor should be able to give you a very accurate total monthly cost.
Something else to be aware of, no one tells you until you get nailed...! If it's a new home, you will get a supplemental tax bill. A new home is built on vacant land, with a low tax bill. You will get that nice low tax bill, but as soon as the county reassesses that lot as now having a home on it, they will bill you the difference. So a few months after you move in, you get a love letter from the County, telling you how much additional taxes you owe. It doesn't hurt if you expect it and have some money put aside, but if it catches you unaware, you might go hungry for a while........

[Gandalara]

Originally Posted by Donn2390

Something else to be aware of, no one tells you until you get nailed...! If it's a new home, you will get a supplemental tax bill. A new home is built on vacant land, with a low tax bill. You will get that nice low tax bill, but as soon as the county reassesses that lot as now having a home on it, they will bill you the difference. So a few months after you move in, you get a love letter from the County, telling you how much additional taxes you owe. It doesn't hurt if you expect it and have some money put aside, but if it catches you unaware, you might go hungry for a while........

This also happens with "used" homes.

The partial taxes you pay in escrow are based on the old owner's tax bill. When the county gets the new sales price, it jumps up to the Prop 13 limit allowed.

Three used houses bought over the years, 3 supplemental bills received here!

[Donn2390]

Originally Posted by Gandalara

This also happens with "used" homes.

The partial taxes you pay in escrow are based on the old owner's tax bill. When the county gets the new sales price, it jumps up to the Prop 13 limit allowed.

Three used houses bought over the years, 3 supplemental bills received here!

You are correct. Any time a home changes ownership, it will be reappraised and you get the new tax bill. That doesn't happen as much today, since home values are going the other way.
The supplemental tax is usually much higher on a new home, because the value of vacant land compared to new home on that land, will be great enough to really grab your attention.

[Gandalara]

Originally Posted by Donn2390

That doesn't happen as much today, since home values are going the other way.

Huh.
Never even thought of that
I stay in my houses longer than seems to be the norm (my homes have never been investments, as they say. They've been homes) and I forget about that stuff.
LOL!

[marshallnoise]

Mello Roos is a way for city governments to break the intended purpose of Prop 13 and collect more tax revenue based on home ownership.

HOA fees are fees designed around common needs for a particular development.

Both are a waste of money and do not add equity to your home. As an HOA ages, the assessments go up. This will become a liability for a seller when that day comes.

Its amazing how we in this country voluntarily give up our freedom in every conceivable way, every day. We elected these chuckle heads (Mello & Roos) and "want" to live in an area where you can't have your garage door open for too long or get overruled by NIMBY neighbors with too much time on their hands.

[Ginagirl]

I have a condo with both Mello Roos and HOA. By paying the HOA, everything on the outside is taken care of for me. The do the roof, paint when needed, mantain the grounds and the pools. HOA is great for a single girl who has no desire or time to work in the yard, this is a great deal.
Current HOA dues take into consideration any future needs, so cost don't tend to rise. The dues we pay take into consideration we will someday need a roof, or paint, or street maintenance, etc., so we are already paying for those future costs. When something is needed, the money is there.
Mello Roos is exactly what Doon said. By putting the costs into a seperate fund, they can sell the home for a lower cost. It looks cheaper on paper, but you still pay for all the services, schools, streets, etc. It's creative financing...
These things may not be for everyone, but are perfect for many...

[chuck22b]

Wow, haven't been on here for some time, but the Preserve HOA and Mello Roos questions still come up.

Generally speaking, the mello roos (CFD [Community Facilities District] 2003 for Tetherwind - http://www.cityofchino.org/ftp/map/C...tial%20Map.pdf), were issued by the city to create new roads, sewers, parks, and other infrastructure for the Preserve. If you look at all the CFDs in Chino, you'll notice that every New community has one. New stuff, requires additional Funding. The City can likewise issue new bonds and special districts (Local Improvement Districts (LID)) for older communities for road, infrastructure, lighting, etc. updates.

Basically, Prop 13 has restricted property taxes (at 2% it's less than inflation), so the City governments have had to come up with other ways to make up for the reduced funding. So, don't feel "safe" if you currently do not have "mello" roos if there's improvements needed, you'll get slapped with some "special" assessments.

In the case of the Tetherwind's CFD (mello roos), it'll depend on the size of your residence as to how much it'll cost you. The smaller the residence, the lower the Mello Roos.

Generally speaking at the Preserve, total property tax is about 1% base tax + .06%-.8% or a total tax bill or between 1.6-1.8% of your sales cost.

So, if your getting a place at Tetherwind for about 220k, your yearly tax bill would be around $3,960 or $330 a month (220k * 1.8%). HOA is about 335 a month which includes buidling maintenance and home insurance.

If you paid 20% down on that 220k home with 5% interest for a 30 year loan, your principal and interest payments would be about: $945
Bloomberg.com: Calculators

So, total monthly home ownership costs of:
P/I: 945
HOA: 335
Taxes: 330
Total: $1610

Of course you need to add the costs of utilities as well. But, you usually pay for utlitlies regardless of where you are. So, add the costs and determine whether they are worth it. Regardless of where you go, if it's nice and/or new, there usually are "hidden" charges. Chino Hills, is mostly covered with CFDs.

Just make sure to plop in the address in the County Tax site:
Tax Collector » Property Search

What's amazing in this country is that everybody wants a free lunch, wants the best or the newest, but doesn't want to pay or work for things.

Hope this helps.
chuck22b