If you're shopping new-construction or recent-build homes in Orange County, you'll see a line item called "Mello-Roos" or "Community Facilities District (CFD) tax." Here's the short version of what it is and how to think about it.
What it is
Mello-Roos is a special tax that funds infrastructure in newer developments — schools, parks, fire stations, road improvements. It was created in 1982 (the Mello-Roos Community Facilities Act) so that new growth could pay for its own infrastructure rather than burdening existing taxpayers.
In practice: when you buy in a CFD, your annual property tax bill includes a Mello-Roos assessment on top of the standard ~1% Prop 13 base.
Who pays
Buyers in CFD-designated areas. In Orange County, this commonly includes:
- Parts of Irvine (especially the Great Park, Portola Springs, Stonegate, and Eastwood villages)
- Ladera Ranch
- Rancho Mission Viejo
- Newer phases of Mission Viejo and Aliso Viejo
Older Orange County neighborhoods generally do not have Mello-Roos.
How much
It varies, but $1,500–$5,000+ annually is a typical range — sometimes more for the most recent developments. Spread monthly, that's $125–$500+ on top of your mortgage.
How long
CFDs have a sunset date — typically 25–40 years from formation. The seller's disclosure should tell you when the assessment expires.
What to ask before you offer
- What's the current annual Mello-Roos amount?
- When does the assessment expire?
- Has the rate changed in the last 5 years? Are there scheduled increases?
- Is the bond paid off early ("paid down") or still active?
I include this analysis in every new-construction offer prep — reach out if you're shopping Irvine or any newer OC community.
