Here are the differences between special assessments and Mello-Roos.
What’s the difference between special assessments and Mello-Roos?
Special assessments are bonds financed by property owners to improve things like streetlights, sidewalks, sewers, and other local infrastructure items. What’s interesting is that the special assessment amounts vary according to how each property owner benefits from the work that’s done.
Mello-Roos taxes, on the other hand, are assessed into your property taxes as a way to finance things related to community events: schools, libraries, parks, etc. Some Mello-Roos taxes can expire after a certain period, while others live on in perpetuity. This makes sense because there are certain community facilities (e.g., a fire department) that need to live on in perpetuity. Mello-Roos taxes can also potentially be listed as liens on property titles that need to be paid off before homeowners can sell.
“Special assessment amounts vary according to how each property owner benefits from the work that’s done.”
A lot of people see these terms as just line items on a HUD statement, but as you can see, they’re there to support local communities and keep them beautiful.
As always, if you have questions about this or any topic related to title insurance, don’t hesitate to reach out to us. We’d love to help you.