What does CFD mean on my property tax bill? This question has come up a number of times recently and in an effort to educate our readers we will discuss CFD and why it shows up on your property tax bill. If you recently purchased a home in San Diego, specifically in a newer area you have likely wondered what the different fixed CFD charges are on your tax bill.
CFD (Community Facilities District) was a law passed by the California State Legislature in 1982. The law was originally sponsored by Senator Henry Mello and Assemblyman Mike Roos. Hint, Mello Roos!
Mello Roos is a very creative way for funding public services and facilities in your community. Items such as schools, parks, streets and services such as fire and police. It’s not necessarily bad but it creates a lot of confusion and misinformation.
When you are looking to purchase a home it’s important to do your due diligence. The seller is required to disclose any Mello Roos but I see it time and time again when agents do a very poor job of entering a new listing in the MLS and fail to search for Mello Roos. Chula Vista, especially the newer areas of Chula Vista has many communities with Mello Roos. Below is a typical tax bill from a random home, you can click on it to open in a new window.
You have your property taxes which is everything up at the top and based on the value of your home but below that you will see the “FIXED CHARGES” many of them have CFD somewhere in the name. My personal favorite has to be the “MOSQUITO SURVEILLANCE” for $2.28. If this was my home I would have to call them on that and see who collects that money for the Mosquito surveillance. Maybe the local termite company as a family member in the state legislature! 🙂 All of the items in the FIXED CHARGES section are part of the bonds that were issued to pay for the Mello Roos.
How long will you pay Mello Roos? As long as needed to pay off the bonds issued. Typically this is a 20-25 year period. I have seen some for as short as 10 years and some that can go as long as 30 years. You can call the phone number to get an answer for each fixed charge.
Wonder if a home as Mello Roos? It’s easy to find out. If your thinking of buying a home you can go to the Tax Assessors website and do a search. In San Diego all you need to do is go to the assessors website HERE. Do an address or APN # search. Pull up a copy of the breakdown and look to see if any FIXED CHARGES have CFD listed in the name. All of these fixed charges will have a phone number next to them. Call and ask them how long these charges will continue.
Hope that helps someone out there and please leave a comment if you have a question.
Areas in San Diego County where you can certainly find Mello Roos are the Otay Ranch & Eastlake area of Chula Vista, Santaluz, newer areas in Carlsbad, Carmel Valley, San Marcos & Vista. Unfortunately the reality is any homes built in the last 10 years are likely going to have mellow roos.