For those who are new to California than you may have not heard about properties that have Mello Roos before. We commonly see Mello Roos associated with new construction communities where some of the extra building cost fees are passed on to the homeowner. The easiest way to explain this extra fee is to look at the various costs when building a a brand new neighborhood. Often times there will be a cost to put in sidewalks, pave streets, put in lamp posts above the streets, etc as those costs can really add up. In order for the builder to avoid having to pay these costs a Mello Roos bond is often set up to pass on these costs to the new owners of the properties that will be living there. These are typically from 25 to 30 years as it almost acts like having another payment on the home that you would need to make every month or year. The benefit of doing this is that is normally will keep the price of the home down which is more attractive when selling the home.
A lot of people don't like to pay this extra cost and specifically look for properties that don't have Mello Roos. In Huntington Beach the best place to look are in older neighborhoods that are more established. Most of the time these homes will not have any Mello Roos since they were built long before this became a trendy thing to do. Homes located in the Downtown area of Huntington Beach is a great place to look as these are some of the older homes that were originality built here. Many of the original beach homes built in the 1940's, 1950's and 1960's are also a great place to look at these often never have any kind of Mello Roos fee associated with them. There real bonus if finding a home with no homeowners association dues and no Mello Roos as this will save you the most money.