No Bull Agent

What Is Mello-Roos and How Can It Impact California Home Buyers?

Depending on where your home search takes you within San Diego County and the state of California, Mello-Roos may or may not be a consideration.  So, what is it and why should you care?  The short answer is that it is a special tax on homeowners who live in a community that used bonds to pay for the infrastructure within that community.  The Mello-Roos is basically the repayment for those bonds.  When we take our clients around to view homes, Mello-Roos is often viewed as a four-letter word.  Are there advantages to living in a community with this tax?  This post will discuss both sides.

Mello-Roos, also known as the Community Facilities District Act (CFD), comes from the names of its co-authors.  Senator Henry Mello and Assemblyman Mike Roos were instrumental in getting this act passed through the California State Legislature in 1982.  It was developed in response to the passing of Proposition 13 in 1978 which made it more difficult for local governments to use property tax revenue for public facilities and services.  In searching for other options to pay for these services, Mello-Roos was created.  Who decides whether a community will have Mello-Roos?

The community in which this tax is considered decides.  The vote must pass in favor of becoming a Mello-Roos community.  Once the vote passes, bonds are issued to support services such as schools, roads, parks, utility connections, sewer, police, fire and life safety.  Mello-Roos is typically paid annually or semi-annually.  The amount and term length of this tax varies from community to community.  When you break it down on a monthly basis, we’ve seen it as low as $80 per month and in upwards of $400 per month.  The term length of Mello-Roos is, on average, between fifteen to twenty years from the year the community was built. Read the rest of this entry »

Tags: california, faq, home buyer, kaplan, mello-roos, nobullagent, prudential california realty, san diego

Live in the Heart of San Diego’s Gaslamp District at Gaslamp City Square

Gaslamp City Square is located in the center of San Diego’s Gaslamp District taking up an entire city block between Fourth and Fifth Avenue and Island and J Street.  It is one of our favorite buildings within the Gaslamp District due to its location, good construction and comparatively low association fees for the amenities included.  Expect to pay between $280 and $380 in association fees at this building.  Association fees typically vary within a building due to unit square footage.  Gaslamp City Square shares two addresses, 445 Island and 450 J Street, and has separate entrances at each.  Secure underground parking is available at the garage entrance along Fourth Avenue.  It is important to note this garage is shared with general public parking.  Units can come with zero to two garage parking spaces.  Strictly on a resale basis, we recommend trying to get a unit that comes with two spaces.  Typically, only the two bedroom units may come with two spaces.

Gaslamp City Square resides above commercial units and shares the block with restaurants such as the Red Pearl Kitchen and The Oceanaire Seafood Room along J Street.  Additionally, this block has retail stores such as Puma, Quicksilver and Skechers along Fifth Avenue.  This seven story building was built by K. Hovnanian Homes with phases completed between 2004 and 2006.  It has 223 units with floor plans that include studios, one-bedrooms and two-bedrooms.  In our opinion, Gaslamp City Square offers the best of both worlds with its unit layout.  Whether you want to be in the middle of the Gaslamp activity with a street facing unit or just close to the activity with a unit facing the interior courtyard and pool, both options are available. Read the rest of this entry »

Tags: 92101, california, condo, Downtown, gaslamp, gaslamp city square, home buyer, kaplan, nobullagent, prudential california realty, san diego