Mello-Roos Community Facilities Districts (CFDs)

The Mello-Roos Community Facilities Act of 1982 was passed by the California Legislature in response to various public funding limitations imposed by Proposition 13. The purpose of the Act is to provide an alternative method to finance the construction of needed public facilities in a timely fashion which is required to service various needs of property owners within a CFD.

A CFD is authorized to issue and sell bonds to provide funds to acquire or construct public capital facilities, such as roadways, sanitary sewer, water and drainage infrastructure, and greenbelt and park improvements. The bonds qualify for tax exempt status, and therefore provide a lower interest rate than conventional, taxable financing methods.

Property owners within a CFD are responsible for paying Special Taxes, which provide payment for the bonds that were issued for the acquisition and/or construction of the public capital facilities within their CFD.

The City of Davis currently has seven Community Facilities Districts (CFDs) as shown in the following table: