Community Facilities Districts/Mello-Roos
Community Facilities District & 1913/1915 Act Assessment Districts
Community Facilities Districts (CFDs), also knows as Mello-Roos, and 1913/1915 Act Assessment districts are defined as areas of the City of Fontana in which property owners have voted to impose special taxes or assessments in order to finance and/or maintain public improvements required in connection with the development of the property within each district.
The City's districts were formed in accordance with the Mello-Roos Community Facilities Act of 1982 or provisions of the California Streets and Highways Code (1913/1915 Act assessment districts).
California Civil Code Section 1102.6 requires a seller of real property within a CFD to provide the "Notice of Special Tax" to the buyer. This notice will provide specific information about the Mello-Roos Community Facilities District your home is located in.
How Are CFDs Used?
New development requires infrastructure (streets, sewers, storm drains). Developers are required 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. Many developers opt for establishing a CFD so they can sell the homes at a lower price. 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.
Types of CFDs
- The first type is established for the purpose of issuing bonds to finance certain public improvements (streets, sewers, storm drains).
- The second type is established to fund services such as the ongoing maintenance for street lighting, landscaping and park maintenance within and surrounding the area of the CFD.
How Long Do I Pay These Taxes?
- If there are CFD bonds, the tax will be levied until the principal and interest on the bonds are paid off, typically over a 30-year period.
- If the CFD was established to pay for maintenance or other services, the property owner will be taxed as long as the maintenance and/or other services are provided.
For More Information
If you live in a Mello-Roos Community Facilities District, you will receive a brochure in the mail every Fall regarding the CFD special taxes.
If you have additional questions relating to your special tax and what it pays for, please email Justin Marietta, Accountant I or call at (909) 350-6608 or email George Pirsko, Accounting Manager or call at (909) 350-7611.