Mace Ranch Mello-Roos: What Buyers Should Know

Eyeing a home in Mace Ranch and noticing a “Mello‑Roos” or “CFD Special Tax” on the tax bill? You are not alone. Many Davis buyers are surprised by this extra line item and want to know what it means for their monthly budget and long‑term plans. In this guide, you will learn what Mello‑Roos is, how it works in Mace Ranch, how to verify the exact amount for a specific property, and how to compare homes apples to apples. Let’s dive in.

What Mello‑Roos Means

Mello‑Roos is a special tax levied by a Community Facilities District, often called a CFD. Cities and counties use CFDs to finance infrastructure and public facilities such as roads, utilities, parks, and school mitigation. The CFD may issue bonds to fund those improvements, then collect an annual special tax from each property to repay the debt and cover costs.

This special tax is a lien on the property, not the owner, and it typically stays with the parcel when a home sells. The amount and any annual increases are set by the CFD’s formation documents and bond materials. In many districts, the tax follows a formula that can be flat per lot, based on lot type, or tied to property characteristics. Some CFDs include a fixed annual escalator or a cap tied to inflation.

How It Applies in Mace Ranch

Mace Ranch is a planned neighborhood with multiple phases. Different tracts can fall under different CFD names, rates, and bond schedules. That is why two nearby homes may show different special tax amounts. You should always check the parcel’s specific records to know the actual figure for that property.

When the associated bonds are paid off, the special tax may be reduced or eliminated per the district’s documents. To understand timing, review the bond maturity schedule for the specific CFD.

Verify Your Exact Amount

You can confirm the current year’s charge with a few straightforward steps.

Start with the secured tax bill

• Pull the most recent secured property tax bill for the parcel. In Yolo County, the bill lists taxing entities and special assessments on separate lines.
• Look for a line that reads “Community Facilities District,” “CFD Special Tax,” or similar. The amount shown is the annual special tax billed for that year.
• Remember that this is separate from the 1 percent ad valorem property tax. If you buy mid‑year, your escrow may prorate the tax.

Confirm with title and county records

• Ask for the preliminary title report. It should list any recorded notice of special tax lien and the CFD name or number.
• If you need more detail, check county resources. The Yolo County Assessor, Treasurer‑Tax Collector, and Recorder can help you locate parcel records and recorded CFD documents. City of Davis departments may also have public records on local CFD formation.

Review the CFD documents

• Use the CFD name or number to find the formation documents and the Preliminary Official Statement for any bonds. These explain the tax formula, escalators, and bond maturity dates.
• The California Debt and Investment Advisory Commission maintains state bond records that can help you find the original issuance materials.

What It May Cost in Mace Ranch

Special tax amounts vary by parcel, phase, and the infrastructure financed. Across many newer California subdivisions, annual special taxes commonly fall in the range of about 1,500 to 4,000 dollars per year, with many communities clustering around 2,000 to 3,500 dollars. In the Sacramento and Davis region, Mace Ranch homes often land somewhere in those mid‑range figures, but your parcel could be lower or higher. Always rely on the current tax bill for the exact number.

Convert annual to monthly

A quick way to make sense of the cost is to translate the annual special tax to a monthly amount:

• 1,200 dollars per year is about 100 dollars per month
• 2,400 dollars per year is about 200 dollars per month
• 3,600 dollars per year is about 300 dollars per month

Add that figure to your monthly mortgage principal and interest, property taxes, insurance, and any HOA dues to compare neighborhoods on a true total cost basis.

A simple monthly budget example

• Mortgage principal and interest (example): 2,000 dollars
• Ad valorem property tax (about 1 percent on a 600,000 dollar home): 500 dollars
• Homeowner’s insurance: 100 dollars
• HOA dues: 150 dollars
• Mello‑Roos special tax: 200 dollars
• Total estimated monthly housing cost: 2,950 dollars

Lenders include the Mello‑Roos amount when they calculate your debt‑to‑income ratio. If you escrow taxes, your lender’s monthly escrow line typically includes the special tax.

How It Affects Price and Resale

Affordability and qualification

Because Mello‑Roos increases monthly carrying cost, some buyers adjust their target purchase price to keep payments in budget. Loan qualification can also be affected, since the special tax is part of your housing expense.

Resale dynamics

On resale, buyer sensitivity to carrying cost can influence price or time on market. In high‑demand periods, the impact may be smaller. In softer markets, it can matter more. The best way to compare value is to look at both sale price and total monthly cost across competing Davis neighborhoods.

Tax deduction clarity

Whether a Mello‑Roos special tax is deductible for income tax purposes depends on the nature of the charge and current IRS rules. Do not assume deductibility. Discuss your situation with a qualified tax advisor or CPA.

Prepayment and Payoff Options

Some CFDs allow owners to prepay, which is a lump‑sum buyout of future special taxes based on formulas in the CFD documents. Others do not permit prepayment. If prepayment is allowed, the payoff amount and terms come from the county or the bond trustee. If a seller states the tax has been prepaid, request official payoff confirmation in writing during escrow.

Buyer Checklist for Mace Ranch

Follow this step‑by‑step process to stay on track:

1. Pull the current secured tax bill and confirm the annual Mello‑Roos line item.
2. Order or review the preliminary title report to identify recorded CFD liens and any prepayment notes.
3. Ask the seller for HOA disclosures and the transfer disclosure statement, plus any proof of special tax payoff if claimed.
4. Note the CFD name or number, then locate the formation documents and Preliminary Official Statement to see the rate formula, escalator, and bond maturity.
5. Confirm with your lender how the special tax will be handled in escrow and qualification.
6. Compare total monthly costs, not just list prices, when evaluating Davis homes.

Tips for Current Owners

• Check the bond maturity schedule in the POS or county records to understand if and when annual charges may decrease.
• Review whether your CFD has an annual escalator and how it is calculated, such as a fixed percentage or a cap tied to inflation.
• If you plan to sell, prepare to share the current tax bill, title report, and any bond maturity details so buyers have clear, accurate information.

Putting It All Together

Mello‑Roos is manageable when you know the exact numbers and timelines for your parcel. In Mace Ranch, amounts vary by phase and CFD, so your best move is to verify your tax bill, title report, and bond details, then fold the monthly figure into your budget. This helps you compare homes with confidence and avoid surprises at closing.

If you would like help pulling records, reading the tax bill, or evaluating how Mello‑Roos affects your offer strategy or resale pricing, reach out. Our Davis‑based team has guided many buyers and sellers through Mace Ranch transactions and can help you make a clear, data‑driven decision. For one‑on‑one guidance or a complimentary property review, connect with David Fletcher.

FAQs

What is Mello‑Roos on a Mace Ranch home?

• It is a special tax from a Community Facilities District that helps fund public improvements, billed annually as a separate line item on your property tax bill.

Where do I find the Mello‑Roos amount on a Yolo County bill?

• Look for a separate line labeled “Community Facilities District,” “CFD,” or “Special Tax,” which shows the annual amount for that tax year.

How much does Mace Ranch Mello‑Roos typically cost?

• Amounts vary by parcel and CFD, but many newer California subdivisions fall around 1,500 to 4,000 dollars per year, with many in the 2,000 to 3,500 dollar range.

Will the Mello‑Roos tax ever end for my parcel?

• It can end or decrease if the CFD’s bonds are paid off or the district is dissolved per its documents, so check the bond maturity schedule.

Can a seller prepay Mello‑Roos before closing?

• Sometimes, depending on the CFD; if prepayment is allowed, the county or bond trustee must issue an official payoff calculation and confirmation.

Is Mello‑Roos deductible on my income taxes?

• It depends on the charge and tax rules; consult a qualified tax professional to determine deductibility for your situation.