Seeing “Mello‑Roos” on a listing in El Dorado Hills and not sure what it means for your budget? You are not alone. Many great neighborhoods here use this funding tool, and the impact varies by parcel. In a few minutes, you will learn what Mello‑Roos is, how to confirm if a home has it, how to estimate the monthly cost, and what it means for financing and resale. Let’s dive in.
Mello‑Roos basics
Mello‑Roos is a special tax charged by a Community Facilities District, also called a CFD. Local governments and developers form CFDs under the Mello‑Roos Community Facilities Act of 1982 to fund public improvements and services such as roads, parks, schools, fire protection, and bond repayment. If a home sits inside a CFD, the owner pays the special tax.
A CFD can set its tax formula in different ways. Some use a flat per‑parcel amount. Others tier by property type, lot size, or unit count. A few tie the rate to square footage or assessed value. Many CFDs include an annual escalator, which may follow CPI or a fixed step‑up. The exact formula appears in the CFD’s formation documents and annual special tax resolution.
Duration also varies. Some special taxes end when bonds are paid. Others continue to fund services. The key is to verify the term and any caps in the recorded CFD documents for the specific property.
CFD special taxes are not the same as your general property tax. They show up as a separate line on the property tax bill and are distinct from HOA dues and other assessment districts.
How to confirm if a home has it
You do not need guesswork. Use these steps to verify whether a specific El Dorado Hills property carries a Mello‑Roos special tax and how much it is.
Start with the tax bill
Ask for the most recent annual property tax bill. Look for a separate line labeled Special Tax, Mello‑Roos, Community Facilities District, or the CFD name or number. If escrow has opened, your agent can request it from the seller.
Check the preliminary title report
The prelim lists recorded notices and exceptions. A Notice of Special Tax or CFD lien typically appears here with the district name, contact details, and sometimes the tax formula or bond information.
Review seller disclosures
Sellers must disclose ongoing assessments and special taxes in the Transfer Disclosure Statement and other forms. Confirm the current annual amount and whether payments are up to date.
Confirm MLS info
The MLS often includes a Mello‑Roos checkbox and an annual amount field. Treat this as a starting point only. Always confirm with documents.
Use county resources
El Dorado County maintains records of special taxes and CFDs and provides parcel data through the Assessor or GIS parcel viewer. You can verify district boundaries and contacts, then confirm the annual levy through the Treasurer‑Tax Collector or Auditor‑Controller.
Ask the HOA or developer (if applicable)
In master‑planned communities like Serrano, the master association or developer materials often discuss the CFD that supports community infrastructure and amenities. Request the annual special tax schedule.
Lean on your professionals
Your title company, escrow officer, and lender can confirm recorded CFD documents, how the special tax is handled in qualifying, and whether it will be escrowed with your mortgage payment.
What it costs and how to estimate monthly
There is no single typical amount. Special taxes range from a few hundred dollars per year to several thousand, depending on the neighborhood and the improvements or services the CFD funds. In El Dorado Hills, larger master‑planned areas often have CFDs, while some established neighborhoods and certain newer tracts do not. Always verify by parcel.
To estimate your monthly impact, convert the annual special tax on the bill to a monthly number.
- Example (illustrative only): Annual special tax of $2,400 equals $200 per month.
Most lenders include the monthly equivalent of the special tax when they calculate your debt‑to‑income ratio. Many lenders also escrow the special tax with property taxes and insurance, which raises the monthly mortgage payment because those funds are collected in advance.
At closing, the special tax is usually prorated between buyer and seller, based on the closing date. Confirm the proration in your escrow instructions.
Regarding income taxes, some special taxes that are general taxes on property may be deductible under federal and state rules and subject to SALT limits. Speak with a tax professional for guidance on your situation.
Financing, appraisal, and resale
Mello‑Roos does not block financing for most buyers. Conventional, FHA, and VA loans are commonly available. Underwriters include the monthly equivalent of the CFD special tax in your housing expense.
Appraisers and buyers consider the total cost of ownership. A higher annual special tax can reduce affordability for some buyers and may influence marketability if the levy is large. In many cases, the neighborhood’s amenities, location, and overall appeal balance that cost. What matters most is comparing the all‑in monthly numbers.
When you plan for resale, remember that buyers will evaluate list price, property taxes, HOA dues, and any special taxes together. Disclose clearly and provide documentation. Transparency helps preserve trust and momentum during the sale.
Neighborhood context in El Dorado Hills
El Dorado Hills includes a mix of communities. Many phases of Serrano have CFDs that fund infrastructure, parks, and amenities. Some other neighborhoods, including certain established areas and selected newer tracts, may have lower or no CFD special taxes. Status varies by tract and even by parcel. Always verify with the tax bill, title report, and county records.
Here is a simple way to compare monthly cost across neighborhoods using illustrative numbers only.
- Home A in a CFD area: $2,400 annual special tax equals about $200 per month added to the housing payment.
- Home B outside a CFD: $0 special tax adds $0 per month.
When you compare homes, include mortgage principal and interest, property taxes, HOA dues, and the monthly equivalent of any Mello‑Roos. This gives a fair, apples‑to‑apples view of affordability.
Buyer checklist: documents and questions
Use this quick list to stay ahead. Ask for these at the listing stage and during escrow.
Request from the seller or listing agent
- Most recent property tax bill
- Preliminary title report
- Seller’s Transfer Disclosure Statement and any HOA or CFD disclosures
- HOA or master association financials and CFD documents, if in a master‑planned community
Ask about the special tax
- Exact annual CFD special tax amount and whether payments are current
- Whether the special tax is tied to bond repayment and the expected end date, if any
- Whether the special tax will be escrowed with the mortgage
Verify with professionals
- Check county resources for special tax listings and the parcel’s CFD status
- Ask the title company to list all recorded CFD notices and special tax liens
- Confirm your lender’s treatment for qualifying and escrow requirements
- Consult a tax advisor about potential deductibility and SALT limits
Timing and escrow details
Expect the special tax to be prorated at closing based on the possession date and the local tax cycle. Your escrow officer can show the exact proration on your settlement statement. If your lender escrows the special tax, your monthly payment will include a portion of it, similar to how property taxes and insurance are handled.
If you are comparing homes across multiple neighborhoods, ask your lender for a side‑by‑side estimate that includes mortgage, property taxes, HOA, and the monthly equivalent of any Mello‑Roos. This will clarify your comfort zone and help you make a confident choice.
The bottom line
Mello‑Roos is simply a financing tool that funds local improvements and services. In El Dorado Hills, you will see it more often in master‑planned areas and less often in some established neighborhoods, but it always comes down to the specific parcel. Verify with documents, run the monthly math, and weigh the community benefits against the added cost. If you follow a clear process, you can decide with confidence.
Ready to compare neighborhoods and confirm the exact special tax for homes on your shortlist? Talk with the local team that does this every day. Connect with the Turner DeMarco Group - VIP for document review, neighborhood comparisons, and a clear plan from search to close.
FAQs
What is Mello‑Roos in California real estate?
- It is a special tax levied by a Community Facilities District to fund public improvements and services, created under the Mello‑Roos Community Facilities Act of 1982.
How can I confirm Mello‑Roos on an El Dorado Hills home?
- Check the current tax bill, the preliminary title report, and seller disclosures, then verify with county records or your title company.
How do I estimate the monthly cost of a special tax?
- Divide the annual amount on the tax bill by 12. Example: $2,400 per year equals about $200 per month.
Can I get a loan on a home with Mello‑Roos?
- Yes. Most conventional, FHA, and VA loans allow it. Lenders include the monthly equivalent in your debt‑to‑income calculations.
Do Mello‑Roos taxes ever expire?
- Some end when bonds are paid, others continue to fund services. Check the recorded CFD documents for the term and any sunset provisions.
Will Mello‑Roos affect resale in El Dorado Hills?
- A higher levy can narrow the buyer pool, but many buyers value the amenities and location. Market response varies by neighborhood and price point.
