Why did Californians even allow the passage of Mello-Roos? (Mission Viejo: HOA fees, condos)

[i_love_autumn]

Talk about a slap-in-the-face after the passage of Prop 13!

I hope they at least ran Henry J. Mello/Mike Roos out of the state!

Mello-Roos - Wikipedia, the free encyclopedia

Another question~ I never heard of HOA fees except for condos,but it seems every home/neighborhood there has them,what's up with that?

[nightlysparrow]

You know this, right?

"Special taxes and bonds used for Mello-Roos financing can only be issued by counties or districts in which two-thirds of the voters in the area have voted in favor of becoming a Mello-Roos district."

[pacific2]

Originally Posted by nightlysparrow

You know this, right?

"Special taxes and bonds used for Mello-Roos financing can only be issued by counties or districts in which two-thirds of the voters in the area have voted in favor of becoming a Mello-Roos district."

Also, it's not as though the money goes up to either the state, or even county level, it stays in the community.

That said, it always pays to be watchful.
{Long example follows; possibly too much information}

About 11 years ago, two residents in a CA city (Mission Viejo) neighboring mine (Aliso Viejo) wanted some answers since they noticed that the schools in their city were deteriorating, while those in Aliso Viejo (same school and Mello-Moos district) were in great shape. They fought long and hard, and uncovered gross inequities.

Not only was Mission Viejo being shortchanged, but both Aliso Viejo and Mission Viejo were sending far more than their share to support the very large school district (Capistrano Unified) in which some cities actually have no Mello-Roos, but their school kids still reap benefits from these taxes.

For example, AV and MV taxpayers together recently paid $14.3 million dollars of the total $19.8 million dollar cost of a new school district headquarters; one serving multiple cities in the district. What's more, there was no end-date for the tax.

As a result, without admitting any "wrongdoing," ( no lawsuits, but some 'splainin was needed) but finally admitting that the situation was not equitable, the district has decided to retire Mello-Roos taxes in 2016. Depending upon the development, some Aliso Viejo homeowners actually pay as much as $7,000/year, others far less, and still some pay none.

Taxpayers in Aliso Viejo, Mission Viejo to Save up to $42 Mil - Schools - Aliso Viejo, CA Patch

Our individual neighborhoods, SFRs and townhouse/condo, are maintained by HOA fees. Again, residents benefit, not the state, although management styles vary according to the particular HOA, and people can opt out by not living here. BTW, many Aliso Viejo businesses also belong to, and run, their own HOAs.

Finally, there is also a city-wide HOA (low yearly fees) in our city, and it is mandated with maintaining our parks, trees and slopes. It also sponsors outdoor activities.

Again, we benefit, not the state.

Whew! That's a mouthful.

[NoMoreSnowForMe]

The Mello Roos areas are not secret. When I was looking to buy a home/condo in the Davis/Dixon, CA area back in about 1995, I crossed Dixon off my list because of the Mello Roos taxes there. You can choose not to buy in these areas.

Same for any areas/condos that require HOA dues. Don't buy there. You don't have to.

[CarawayDJ]

Mello-Roos is nothing but a property tax with another name. It's why I often say that prop 13 is a total crock for many people in CA. The money may stay local but it's effectively just a property tax. It's why any discussion of changing prop 13 needs to mention Mello-Roos. CA being CA, they would probably remove prop 13 and leave Mello-Roos in place. The homeowners would then pay two high property taxes.

[CarawayDJ]

Originally Posted by nightlysparrow

You know this, right?

"Special taxes and bonds used for Mello-Roos financing can only be issued by counties or districts in which two-thirds of the voters in the area have voted in favor of becoming a Mello-Roos district."

Aren't you describing the exception, and not the norm? I believe most of the people paying Mello-Roos are living in neighborhoods where the Community Facilities District was established prior to the development of the subdivision/neighborhood. This is quite common and why you see the majority of Mello-Roos in planned subdivisions. There are no residents to vote in such a case. Well, you can vote by not buying a home in the planned community. How common is it for residents not under Mello-Roos to vote for Mello-Roos?

[Ultrarunner]

Originally Posted by CarawayDJ

Mello-Roos is nothing but a property tax with another name. It's why I often say that prop 13 is a total crock for many people in CA. The money may stay local but it's effectively just a property tax. It's why any discussion of changing prop 13 needs to mention Mello-Roos. CA being CA, they would probably remove prop 13 and leave Mello-Roos in place. The homeowners would then pay two high property taxes.

I'm thankful everyday that the voters that came before me made Prop 13 law.

At least the voters have a say.

As for Mello... I refuse to buy into any Mello-Roos areas... simple as that.

My "New" house was built in 1956 and is 1725 square feet... the sellers built it new and were paying $1200 a year... I pay $9,000.

No surprises and no Tax Assessors pushing double digit tax increases because thanks to Prop 13... THEY CAN'T!

[jw2]

Suppose you live in a town of 20,000 people. A parcel of land is developed adding 1,000 homes to the town. Two signalled intersections entering into the existing town are added at a cost of $1,000,000 each (yes, they cost that much), each school adds classrooms to accommodate the new students, the library is expanded, and a park is built,, etc. Who pays for all of that? The increased property tax will pay for the upkeep of it all but who pays to get it up and running?

Prior to Prop 13, when the county basically had a blank check, they can raise the assessed value of existing houses and raise the tax rate with no problem and pay for all this new infrastructure. Basically, the existing residents pay for the city to accommodate the new residents. Nice of them, I say especially considering the existing homeowners had no say in the matter.

When Prop 13 came, (which Prop 13 opponents must not know how bad it was without) prevented robbing existing homeowners so Mello Roos came along and said that the new owners must pay for the infrastructure improvements. Sometimes they are taken out as a bond and added to the property tax bill. They are NOT part of the property tax, it is just a bond, they can and eventually are paid off. Sometimes the builder pays them and just adds the cost to the price of the home. Either way the new homeowner is paying for the infrastructure. Don't like it? Don't buy the house. But the existing residents don't have to pay for it.

I am a proponent of Prop 13 and Mello Roos.

[BRinSM]

i would never live somewhere with mello roos either. the good news though is that as neighborhoods age, the mello roos will begin to disappear.

[i_love_autumn]

Originally Posted by CarawayDJ

Mello-Roos is nothing but a property tax with another name. It's why I often say that prop 13 is a total crock for many people in CA. The money may stay local but it's effectively just a property tax. It's why any discussion of changing prop 13 needs to mention Mello-Roos. CA being CA, they would probably remove prop 13 and leave Mello-Roos in place. The homeowners would then pay two high property taxes.

That's exactly the way I see it!


Aren't you describing the exception, and not the norm? I believe most of the people paying Mello-Roos are living in neighborhoods where the Community Facilities District was established prior to the development of the subdivision/neighborhood. This is quite common and why you see the majority of Mello-Roos in planned subdivisions. There are no residents to vote in such a case. Well, you can vote by not buying a home in the planned community. How common is it for residents not under Mello-Roos to vote for Mello-Roos?

It sounds to me like Prop 13~ GOOD.....Mello-Roos~BAD

Why would any citizen feel ok about a 'back-door tax' slapped on them immediately after a proposition to restrict taxes is passed? I don't get that!