As most Coto de Caza residents know, many of the homes in our community are subject to a Mello Roos tax.  The Mello Roos is an additional line item on our tax bills and it is generally not subject to the annual increases we see on other parts of our tax bill.  In the 1970’s, California voters approved Proposition 13 which limited tax increases to 2% per year. 

Tax time mello roos on Coto De Caza real estate As a way around this limit, Mello Roos legislation was enacted.  Mell Roos is generally referred to as a Community Facilities District, in Coto de Caza, ours is Community Facilities District No. 87-8.  When these districts are approved, they have to specify a dollar amount and a purpose for the funds.  In Coto, the amount was $46,300,000 and the stated purpose was a Library, Foothill Circulation Phasing Plan, Roadways, Fire Station and a Sheriffs Substation.  It also included police protection, fire protection, open space services, ambulance/paramedic, recreation, flood and storm control.  The original bond issue was for $11,275,000 in 1989, but is was reissued and expanded to $30,412,976 in 1994 and then refinanced again in 2004 for $22,018,895.  These funds are generally paid for by property owners, but in the 1990’s when home sales sagged, the developer of Coto de Caza agreed to underwrite a portion of the tax in order to make it more palatable to prospective buyers.  The good news is that district 87-8 is due to mature in 2019.  Although it is possible for the taxes to be expanded and extended, it is rare.  If you have any questions on Mello Roos or how it effects our property values, please give us a call.

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