B.1.4.1 Community Facilities Districts/Mello-Roos Bonds

B.1.4.1 Community Facilities Districts/Mello-Roos Bonds

The Legislature enacted the Mello Roos Community Facilities District Act of 1982, commonly referred to as the Mello Roos Act, to provide a flexible financing mechanism to local governments after the passage of Proposition 13205 through the formation of Community Facilities Districts (CFDs) and subsequent issuance of Mello Roos Bonds. See Section 3.3.7 Special Assessments, Special Taxes and Tax Increments. Use of Mello Roos bonds has proven to be popular with local governments and are used to finance projects in communities throughout California including school facilities, roads, and sewer and water systems. For school districts, the Mello Roos Act allows districts to create CFDs within its boundaries to fund new school construction.206 Once established, CFDs are governed by the legislative body that approved their formation.