Mello Roos Impact Calculator

Mello-Roos adds meaningful tax to CA properties. This calculator sizes the impact.

CFD annual tax

Annual escalation %

Remaining years

Discount rate

Hold years

Hold NPV burden

$43,747

Remaining total cost

$187,609

Year 1 cost

$6,500

How the math works

Year cost escalates at the escalation rate. Hold NPV sums discounted annual over hold years.

Mello-Roos in new California developments routinely doubles effective property tax rates for the first 20 years. A 1% Prop 13 base plus a 1% Mello-Roos equals 2% all-in — the buyer's real carry, not the marketed headline rate.

How to Use

Enter CFD annual tax.
Enter CFD annual escalation %.
Enter years remaining.
Enter discount rate %.
Enter hold years.
Read NPV of CFD burden.

Frequently Asked Questions

What is Mello-Roos?

California Mello-Roos Community Facilities District tax. Finances infrastructure in new developments (roads, schools, sewer, parks). 20-40 year amortization. $2,500-15,000 annual on typical new-development home. Attached to the property, not owner.

Escalation?

Most CFDs escalate 2-4% annually. 30-year bond at 3% escalation: $5,000 today = $12,100 at year 30. Bond payoff then drops to zero. Match to hold period for true cost.

Prepayment?

Most allow prepayment at ~$25-50 per $1 of annual assessment. $5,000 annual = $125-250k prepayment. Rarely makes sense financially vs holding cash; popular at listing to improve buyer perception.