Mello-Roos Community Facilities Act

History of Community Facilities Districts (CFD)
In 1978, Proposition 13 was enacted by Californians, which limited the ability of many public agencies to finance new projects. In 1982, Senator Henry Mello and Assemblyman Mike Roos assisted in the passage of the "Mello-Roos Community Facilities Act of 1982" authorizing local governments and developers to create Community Facilities Districts (CFDs) for the purpose of selling tax-exempt bonds to fund public improvements.

Mello-Roos Community Facilities Act
The Act allows any county, city, special district, school district or joint powers authority to establish a CFD, which allows for the financing of public services and facilities. To establish a CFD it must be approved by a 2/3 margin of qualified voters in the district. If there are fewer than 12 registered voters within the district, the vote may be passed by current landowners. At the close of the legal proceedings, an established CFD has all the legal privileges of a legally sanctioned governmental body. All CFD taxes are incurred annually. They are levied/collected at the same time as property taxes.

CFD special taxes, if applicable to you, are required to be shown on your property tax bill. To view a copy of your property tax bill, please visit the Treasurer Tax Collector's website. Our handout (PDF) shows the CFD codes that may appear at the bottom of your tax bill.

CFDs Levying Mello-Roos Taxes Within Rancho Santa Margarita
Rancho Santa Margarita Community residents pay various special taxes to support public improvements, including roads, schools and water systems. The agencies constructing those improvements can levy taxes on local residents to pay for the cost of building and financing the improvements. Please note, the City of Rancho Santa Margarita does not levy, administer, collect, or use the CFD special taxes, and did not form any of the CFDs affecting the Rancho Santa Margarita community. View a summary of CFDs within Rancho Santa Margarita (PDF).

The following are CFDs formed by various agencies that may affect your property taxes:
Mello-Roos/CFD Search Tool
Use the City's Mello-Roos/CFD Search Tool to find which CFD may be applicable to your property.

Reports & Audits
The Rancho Santa Margarita City Council recognizes CFD impacts on residents taxes and has audited the CFDs for compliance requirements and usage of funds.
Additional Information
View other important informational documents regarding Community Facilities Districts: