What Are Mello Roos Taxes? Understanding the Impact on OC Neighborhoods
By Bryan Suarez, Local Real Estate Agent Serving Mission Viejo, Lake Forest, Rancho Santa Margarita, Aliso Viejo, Laguna Niguel, and Surrounding Areas
If you’re considering buying a home in South Orange County, you may have come across the term Mello Roos. But what exactly does that mean for you as a potential homeowner? Let’s break it down!
What Are Mello-Roos Taxes?
Mello-Roos is a special property tax levied on certain communities in California. These taxes were authorized by the Mello-Roos Community Facilities Act of 1982 to help finance public infrastructure such as schools, parks, roads, and utilities in new developments.
Instead of being funded by general property taxes, these improvements are financed through bonds, and homeowners in Mello-Roos districts pay an annual tax (on top of their regular property taxes) until the bond matures/paid off, typically in 20–40 years.
How Much Are Mello-Roos Taxes?
Mello-Roos taxes vary widely depending on the community and the specific improvements funded. They can range from a few hundred dollars to several thousand dollars per year. It’s important to factor this into your overall housing budget.
Which South OC Neighborhoods Have Mello-Roos?
In South Orange County, many newer master-planned communities include Mello-Roos districts. Here are some of the most popular ones:
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Ladera Ranch
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Rancho Mission Viejo
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Portola Hills (Lake Forest)
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Baker Ranch (Lake Forest)
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Aliso Viejo (select neighborhoods)
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San Juan Capistrano (some newer developments)
Should You Be Concerned About Mello-Roos?
While Mello-Roos taxes do increase your annual tax bill, they often fund high-quality schools, parks, and other amenities that can make a neighborhood more desirable—and ultimately enhance your home’s value.
Final Thoughts
If you’re considering buying in South OC, always ask your real estate agent (that’s me!) about Mello-Roos taxes for any home you’re considering. I can help you understand the details and ensure you’re fully informed before making an offer.
Let’s find the perfect property for you! Call, text or email me!
-Bryan
📞 (949) 522-7502
📧 [email protected]
Bryan Suarez Real Estate | Top Realtor in Mission Viejo, Orange County
