In need of Mello-Roos clarification... (San Diego, Chula Vista: sales, real estate, renting)

[thepinksquid]

My husband I are planning a move to San Diego and are casually looking at some real estate in various areas. I've been using sdlookup.com and I see on the site that the Mello-Roos "tax" varies greatly, from nothing to over $5,000 monthly.

Now, I know what the tax is for...and I understand that typically it is only paid in newer communities, but...

When a listing says, for example, $3,000/monthly for Mello-Roos....is that literally an amount you'd have to pay? What doesn't make sense if that I've found several homes in the Chula Vista Eastlake area in the $350,000-450,000 range that have this Mello-Roos tax that would LITERALLY be the same amount paid for the home's mortgage! How is that correct?!

Good example: SDLookup.com > 1128*Sparrow*Lake - MLS# 090001262

Furthermore, is this paid forever? Or is this something that is paid over x-years until the community's bond amount is paid back?

I've done some searching on the forums for this, but I haven't come across a direct answer to my question.

I really hope I'm misunderstanding this whole thing...

Thanks!

[TomSD]

It sounds like you understand it right. It is paying off a bond and generally has a fixed and known pay off year. In a new built community that can be 5-10 years off in an older one you might only be looking at a year or two before it is paid off. It is best with anything with a Mello Roos to have your agent get the skinny on it for you.

I'm betting that 3k one means 3k a year... paid monthly. There is no way a Mello Roos is that much a month. Or should I say, I never ran into one that was over 500 or so a month when I was house shopping last year. Personally I couldn't see paying it myself. Add a Mello Roos and HOA and you've tacked a lot onto your monthly commitment when buying a house.

[kettlepot]

I wanted to second everything TomSD said. I can't imagine a Mello-Roos would be $3,720 per month either. Plus when you take $3720 and divide it by 12 you get a nice even $310. Sounds like the M-R is $3720 total per year but it is payable on a monthly basis, as opposed to property taxes which are do biannually (Apr & Dec).

[thepinksquid]

Thank you both so much! That's a lot easier to deal with than what I was originally thinking.

Thanks again!

[esmith143]

In most new developments, MR are under 6000/year. Some upscale communities have 6000-8000/year, but those would also have sales prices in the seven figures. MLS listings frequently misstate the payment frequency or even the amount. If you don't want to involve your agent, you can go to County of San Diego Treasurer - Tax Collector, click on "pay online", and enter the address (or the parcel number). It will tell you the exact amount of mello-roos. Common abbreviation for mello-roos on the property tax statement is CFD, there may be more than one.

Sometimes it won't find the address, but it usually finds the parcel number. On sdlookup, you click on "view sales history" to find it. It is a 10-digit number.

I believe that MR are typically for 30 years from the date the house was built - I could be mistaken.

[PCWoman]

I live near where you are looking. It is around $3,000 a year depending on the exact community though. It is bond issues that they had to take out to build roads and schools and fire stations because tax rates were frozen in 1970's our agent Steve@Lemack.com said. They are usually 25 yrs. or so. If you get rich, you can pay the M-R off early or when rates go down the government here refinances them to save us money.

Expensive but we have the best weather in entire country, so our builder called it "sun tax". Never any frost in eastern Chula Vista. It's between cold foggy ocean breezes near Pacific and mountains which have pure desert on other side. We are right inbetween with the best weather even around here! Love it, we moved here 4 yrs. ago.

Check out WindingWalk area for all types of prices and great mountain views and pools and parks!

[thepinksquid]

Thanks so much PCWoman.

We're moving next week, and we actually decided on renting a year (at least) until we purchase. We found an area in Mission Valley that we really like, and we're going to check out surrounding areas while we're renting. So excited!!

[MissNM]

Originally Posted by esmith143

go to County of San Diego Treasurer - Tax Collector, click on "pay online", and enter the address (or the parcel number). It will tell you the exact amount of mello-roos. Common abbreviation for mello-roos on the property tax statement is CFD, there may be more than one.

OMG - I've been looking for this info!!! I wasn't sure our Mello-Roos were being paid.

esmith143 - you are the best!

[NTCNewcomer]

How do I pay off my Mello-Roos tax early? Thanks.

[cruitr]

Call the county treasurer @ 877-829-4732 and ask for a payoff amount.