General

Bonded Community Facilities Districts

Introduction to Bonded Community Facilities Districts

Background What are Community Facilities Districts? Community Facilities Districts (“CFDs”), also known as Mello-Roos Districts, are special tax districts that were created in 1982 through the Mello-Roos Community Facilities Act of 1982 as a means of obtaining additional public funding and financing for various services and infrastructural improvements in California by imposing special taxes on property. In bonded CFDs, improvements are funded through the sale of land-secured municipal bonds. Property owners within the district boundaries pay an annual special tax until the debt service on the bonds is completely paid off over a designated period. CFDs were created by and […]

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Benefit Assessment Districts

Benefit Assessment Districts in California

What are Benefit Assessment Districts? Benefit Assessment Districts are a “property tax” mechanism used by local governmental agencies in California (counties, cities, and special districts) to fund public improvements and services.  Assessment Districts are established for a specific geographical area that receives a special benefit from specific public improvements and services.  In other words, the charge only applies to properties receiving a benefit instead of being applied against all properties within a governmental jurisdiction, as is the case with regular property taxes. What is Special Benefit? Article XIII D of the California Constitution (commonly referred to as Proposition 218) defines

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