Understanding Mello Roos in La Jolla as a Prospective Homebuyer
If you're a La Jolla homebuyer, you've likely heard of the word Mello Roos but may be uncertain as to what it is. Mello Roos in La Jolla is an additional tax imposed on the homeowner of a housing development/subdivision to help the community or local district pay for public improvement projects. These projects include: police, ambulance and fire protection services, schools, roads, utility connections, sewer lines and streetlights. Communities built after 1994 will impose a Mello Roos tax on its homeowners.
An unaltered agreement is made which sets the total amount homeowners will have to pay for Mello Roos in La Jolla. The percentage required and the length of time in which the payments are to be made will vary by development. Typically, Mello Roos in La Jolla is over $1,000 per month and is usually paid over 15 years. Because the cost of Mello Roos paid by each homeowner is tied to the value of one's property, the costs can increase or decrease depending on the amount of property taxes owed.
The correlation between property tax and Mello Roos can make living in certain areas unattainable for some prospective homebuyers. To ensure that a buyer can afford a home, it is important to find out what percentage of the home's value goes toward Mello Roos. The percentage, which typically ranges from .5 to 2% of a home's total value, is a fixed rate that will stay the same throughout a home's lifespan. Therefore, most buyers will be required to pay more than the previous owner simply because the home as likely appreciated in value. While this may be a major factor in some areas of the United States, housing developments with higher Mello Roos fees like those in La Jolla still attract many potential homebuyers because the communities are safer, well maintained and house the some of the area's top schools.
The La Jolla real estate market has many fine housing communities to choose from. For homebuyers looking for more information about Mello Roos in La Jolla or who need assistance with the home buying process, contact a local real estate agent from our Blue Book directory.