Hey Del Surians, ready for some good news? In January 2021 I wrote this blog about mello roos in general, and in particular about Del Sur’s mello roos bonds. I decided to check in with the Poway Unified School District planning department to see if there have been any changes, and low and behold, I have some new information to share!
GET READY CFD 15: YOU’RE ON DECK
CFD 15 covers the mello roos bonds issued for the construction and expansion of PUSD schools in the area (as opposed to infrastructure built by the developer in the area - those bonds are CFD1A-D). CFD 15’s mello roos bonds were projected last year to be paid off 34 years ahead of schedule, in 2023. This remains the case! The first date the bonds CAN be paid off is Oct. 1, 2023, and CFD 15 currently has enough funds to make this happen.
The only thing that could change this pay off is if there are unanticipated school expansions (mello roos funds can only be used to construct or expand a school, not to modernize it). Currently, Del Norte High School is being expanded. The Planning department projects when expansions will be needed and sets aside funds for them; if something unexpected does come up, often another CFD’s surplus funds can be used. PUSD does not foresee anything coming.
Now for the really exciting news: CFD mello roos taxes could stop being collected 6-12 months ahead of Oct. 1, 2023 – as early as this October! This is what happened when the first CFD, CFD 1, was paid off. This means that CFD 15 homeowners may start saving $333-$833/month as early as October 2022! (mello roos bonds depend on home size, thus the variance). Saving between 4K-10K per year on taxes will of course put smiles on many homeowners faces. Will this make CFD 15 more desirable to live in and thereby increase housing prices even further?
SOME BONDS STILL HAVE NOT BEEN ISSUED
CFD 151B & D still have not yet been issued by the developer. What PUSD does in this case is collect the maximum anticipated amount; once the developer knows how much they spent on the infrastructure, they give PUSD the figure and PUSD issues the mello roos bonds. The actual amount owed is evaluated against the actual amount previously collected to then come up with a new pay off date. It is anticipated that the developer will know the amount spent on infrastructure in CFD 151B & D within 5 years. Last year’s chart used a placeholder of 2020 to pay off these bonds; this year they have moved the payoff anticipation to 2048 & 2049.
Every year, a Municipal advisor and a Special Tax consultant review the latest information with PUSD, and PUSD then makes changes to the mello roos reduction plan. The newest report is here. CFD 14, the “older” part of Del Sur, is now projected to be paid off 2 years earlier than projected last year, in 2031. 9 more years!
Although the “newer” part of Del Sur, CFD 15, will only be paying half their mello roos taxes soon, the “older” part will have all of their mello roos taxes paid in full by 2035. This is 13 years earlier than the full amount of CFD 15’s mello roos will be paid off. There are advantages to each!
As a realtor I see mello roos taxes affecting homeowner’s decisions regarding where to buy and at what price point every day. If you have other questions about mello roos taxes, feel free to reach out. We will hopefully know the answer, and if not, we love nothing more than finding it out for you!