To determine if this is good or bad, you need to evaluate the amount of taxes you will be paying. The property taxes will go on for the life of the property. The Mello-Roos bonds are usually for 20 years. The Mello-Roos payments can make your taxes exceedingly high on a percentage basis. Under Proposition 13, your taxes cannot exceed 1.25% of the assessed value, but this does not include Mello-Roos payments. They are an exception. If the Mello-Roos payments are excessive, it could make it harder for you to sell the property in the future, plus you will make the payments while you own the property.
This response does not constitute legal, accounting or other professional advice. Only through a personal, confidential consultation with qualified legal counsel can anyone properly evaluate their own unique legal challenges and determine what, if any, appropriate legal strategies and tactics should be implemented to meet those challenges.
Circular 230 Disclaimer - Nothing in this response is intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties regarding any transactions or matters addressed herein. You should always seek advice from independent tax advisers regarding the same.
