Wondering if that Natomas Park home you love comes with Mello-Roos and what it means for your monthly budget? You are not alone. Many homes built during Natomas’ growth years include Community Facilities District special taxes that can change your total payment and loan qualifying. In this quick guide, you will learn what Mello-Roos is, where it commonly shows up in Natomas Park, how it impacts your monthly costs and approval, and how to verify the exact amount for any property. Let’s dive in.
Mello-Roos explained in plain English
Mello-Roos is a special tax under California’s Community Facilities District law. Local agencies create CFDs to fund public improvements and services such as streets, sewers, water lines, parks, flood control, fire stations, and school facilities. The tax is in addition to the standard 1 percent ad valorem property tax under Proposition 13 and appears as a separate line on the tax bill.
CFDs often issue bonds with terms that can last 20 to 40 years. Some CFDs also levy ongoing special taxes for services that can continue until changed by the agency. Each CFD sets a Rate and Method of Apportionment that explains how the tax is calculated for each parcel, and many include annual increases tied to an index or a fixed percentage.
Amounts are usually collected on the Sacramento County secured property tax bill. If not included on that bill, they may be invoiced separately. The owner of record when the bill is issued is responsible for payment.
Where you see Mello-Roos in Natomas Park
Natomas Park grew rapidly in the 1990s and 2000s, which often required financing for new infrastructure and facilities. That is why many planned areas and infill streets in and around Natomas Park include CFD special taxes. Flood control and levee improvements, new schools, and off-site utilities are common reasons CFDs were formed in growing neighborhoods.
You can spot whether a specific Natomas Park property has Mello-Roos by checking:
- The Sacramento County property tax bill for a separate “Special Tax,” “CFD,” or named district line item.
- Public CFD maps and lists maintained by the City of Sacramento and Sacramento County that show boundaries and district names or numbers.
- The preliminary title report for recorded special assessments, bonds, or liens tied to the parcel.
- The listing and seller disclosures, which often indicate if Mello-Roos applies and may show an annual amount.
Local offices to consult include the Sacramento County Assessor for APN details, the Treasurer-Tax Collector for the current tax bill and special tax statements, the City of Sacramento finance or development pages for CFD boundary maps and formation documents, and the County Recorder for recorded formation and bond records.
How Mello-Roos changes your monthly costs
A Mello-Roos amount adds directly to your monthly housing budget. To convert an annual special tax to a monthly number, divide by 12. For example, an annual charge of $1,800 equals $150 per month.
Remember that Mello-Roos is separate from the Proposition 13 base tax. The homeowner’s exemption reduces ad valorem taxes, but it typically does not reduce a CFD special tax. Always verify the current rules in the district documents and with the county.
A simple budget example
Here is a hypothetical scenario to show the math for a $500,000 Natomas Park home:
- 30-year fixed mortgage at 4.5 percent: principal and interest about $2,533 per month.
- Base property tax at 1.00 percent: $5,000 per year, about $417 per month.
- Mello-Roos special tax: $1,800 per year, about $150 per month.
- Homeowner’s insurance estimate: $100 per month.
Total estimated monthly housing cost: $2,533 + $417 + $150 + $100 = about $3,200.
How lenders treat Mello-Roos when you qualify
Most lenders treat recurring special assessments like Mello-Roos as part of your monthly housing payment. The monthly Mello-Roos amount is included in your debt-to-income calculation, which can reduce the maximum loan size you qualify for at a given income.
Expect your lender to request documentation such as a tax bill excerpt, a statement from the Treasurer-Tax Collector, or the CFD rate and method. If a new assessment is not yet on the tax roll, the lender may ask for an official statement or escrow instructions that show the amount. Some loan programs also require the first year’s special tax to be escrowed at closing or require additional reserves. If the special tax increases annually, lenders typically qualify you using the current amount and may review your ability to manage future increases.
What to look for in listings and on tax bills
On an MLS listing, you might see a “Special Assessments” field marked “Mello-Roos,” “CFD,” or “Special Tax,” sometimes with an annual dollar figure. Some listings also note the district, for example “CFD 2005-1,” and whether it is collected with the tax bill.
On the Sacramento County tax bill, you will see the base secured tax as one line and then separate lines for special assessments. Each line often shows the CFD name or number. Many bills list several special items, such as a CFD tax plus school bonds or parcel taxes. Add all special charges together to understand the total recurring burden. Always match the APN from the listing to the tax bill so you know you are reviewing the correct parcel.
Verify Mello-Roos for a Natomas Park address
Follow these steps for a clear, property-specific answer:
- Obtain the parcel number and legal description from the listing or the Sacramento County Assessor.
- Pull the current Sacramento County Treasurer-Tax Collector bill for that APN and look for lines labeled “Special Tax,” “CFD,” or a district name or number.
- Request a tax certificate or official statement from the Treasurer-Tax Collector that shows current and prior-year special tax amounts and the payment schedule.
- Review the preliminary title report for recorded liens, assessments, and references to CFD bonds.
- Ask the seller for disclosures, HOA documents, and any recorded Rate and Method of Apportionment or formation documents for the district.
- Contact the City of Sacramento or Sacramento County finance or development office for CFD boundary maps and formation documents, including resolutions, maps, and bond details.
- If your lender needs it, request a tax info letter or lien certificate that shows the exact annual amount used for qualifying.
- Confirm whether the amount is collected on the secured tax bill or billed separately, and whether it has annual escalators.
Key documents to gather:
- Sacramento County secured tax bill for the APN
- Recorded CFD formation and bond documents
- Rate and Method of Apportionment for the CFD
- Preliminary title report and escrow instructions
- Seller disclosures and any HOA or CC&R documents
Smart strategies for buyers
Comparing homes: Look at the total effective annual cost, which includes the 1 percent base tax plus Mello-Roos and any other parcel taxes or bonds. Converting the total to a monthly amount helps you compare apples to apples across different homes and neighborhoods.
Negotiating your offer: Many buyers factor Mello-Roos into their offer strategy, either by adjusting price expectations or by requesting concessions to offset the ongoing cost. Since the special tax is attached to the parcel, it can affect future buyer interest, especially if the amount is high.
Thinking about resale: A CFD with a known end date can be more comfortable for some buyers. Ongoing service-only assessments without a clear sunset may impact marketability. Accurate disclosure at sale helps future buyers evaluate costs upfront.
Considering payoff: In most cases you cannot simply remove a CFD special tax at the individual parcel level. Some districts allow prepayment of bonds subject to the bond provisions or require a community process. The Rate and Method and bond documents will state if prepayment is possible and how it works.
Quick worksheet: add it up
Use this simple checklist to estimate your monthly payment for a Natomas Park home:
- Principal and interest: lender estimate
- Base property tax at about 1 percent of purchase price, divided by 12
- Mello-Roos special tax from the tax bill, divided by 12
- Homeowner’s insurance estimate, per month
- Any other parcel taxes or special assessments, divided by 12
Add these together for your total estimated monthly housing cost. Share the Mello-Roos amount with your lender early so they can size your loan correctly.
Your next step
If you are comparing Natomas Park homes, verifying Mello-Roos early will save time and help you make a confident offer. Need help pulling the correct records, reading the tax bill, or weighing costs against value and resale? Connect with Gonsalves Real Estate Properties for local guidance and a clear plan to move forward.
FAQs
What is Mello-Roos in Natomas Park and why does it exist?
- It is a Community Facilities District special tax that funds public infrastructure and services, such as streets, utilities, parks, flood control, fire stations, and school facilities, in addition to the base 1 percent property tax.
How can I tell if a Natomas Park home has Mello-Roos?
- Check the Sacramento County tax bill for a separate CFD or Special Tax line item, review the preliminary title report, and confirm with seller disclosures and city or county CFD maps.
How does Mello-Roos affect my mortgage approval?
- Lenders include the monthly Mello-Roos amount in your housing expense and debt-to-income ratio, which can reduce the maximum loan amount you qualify for at a given income.
Where will I see Mello-Roos on the Sacramento County tax bill?
- It appears as a separate line under special assessments, often labeled with the CFD name or number, in addition to the base secured ad valorem tax.
Can I prepay or remove a Mello-Roos special tax?
- Usually not at the individual property level unless the CFD’s bond and Rate and Method documents allow prepayment; some districts require specific procedures or community action.
When do Mello-Roos charges end for a property?
- Bonded CFD taxes typically end when bonds are fully repaid, while service-only special taxes may continue until changed by the district; check the CFD documents for terms and any escalators.
