Dues & Fees

Mello Roos Taxes and Homeowners Association Assessments - How They Work

Mello Roos

In 1982, State Senator Henry Mello and Assemblyman Michael Roos affected the passage of the Community Facilities District Act (referred to as Mello Roos). This Act provided a method to finance certain infrastructure improvements such as parks, roads and schools within communities.

In Serrano, this Mello Roos special tax authority was used for two purposes. The El Dorado County Mello Roos was used to finance major roads, water and sewer facilities, reclaimed water facilities for landscape irrigation, designated public parks, and trails to the natural open space areas. A second Mello Roos special tax was established to fund the construction of up to four elementary/intermediate schools within Serrano, as well as a high school at an undetermined site.

The facilities and improvements that are being financed through the Mello Roos special tax are the type of "quality of life" features that are attracting home and lot buyers to Serrano. For example:

• Parents are looking for communities with good school systems that are able to accommodate growth.
• Home buyers place a premium on neighborhood parks as well as natural open space areas with trails for walking, hiking, and biking.

Property owners in Serrano are responsible for the payment of this special tax, which appears on the county's annual property tax bill. The county Mello Roos tax is based on the median lot size for each recorded subdivision and the schools Mello Roos tax is based on the square foot of assessable space in the home. A typical county Mello Roos tax is approximately $938 (or $78 per month) and the schools Mello Roos would be approximately $820 (or $68 per month) for a 2,500-square-foot home. This is general information only; please contact the County of El Dorado for information for a specific property.

HOA Assessments

Once the infrastructure is put in place, ongoing services are required to maintain this investment for the community. Again, many of these services are directly related to the type of "quality of life" features that homeowners receive in Serrano's Master Planned Community. The Serrano El Dorado Owners' Association is responsible for such services as:

• Providing front yard landscape services, including mowing of front lawns, for all production homes
• Maintaining common areas, parks, trails and natural open space areas
• Reviewing and approving plans for new construction and improvements
• Maintaining Serrano's roads, sidewalks, streetlights, etc.
• Upholding community standards

HOA assessments are set annually for each village based on the specific services provided and are payable on a quarterly basis. For 2006, an average HOA assessment is $150 per month. Please ask your sales agent to check the budget for your village to obtain the actual rate for the village where you plan to buy and for other significant information. This is general information only.