[quote=DelSurBird]
Can you please provide the link to where you read it online that the prepayment of Mello Roos could be denied in the near future?
[/quote]
I can’t remember off the top of my head the exact place that I read it. There was tons online but check out one of the links on this thread that had the detailed bond information.
I saw a few things but I mainly made special note of this clause:
“”PREPAYMENT OF ANNUAL SPECIAL TAXES
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Annual Special Taxes that may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently outstanding Bonds in each future Fiscal Year and such prepayment will not impair the security of all currently outstanding Bonds, as reasonably determined by the Board. Such determination shall include identifying all Assessor’s Parcels that are expected to become Exempt Property”.
There is a lot of technical jargon with these types of bonds. I NEVER like wording like “as reasonably determined by the Board”. What the Board considers “reasonable” and I consider “reasonable” are probably two totally different things.
Also, I agree with the comment about it not being good for the bondholders if everyone prepaid their Mello Roos ahead of time. However, I don’t think this is common. I’d be curious to know the % of people that prepay them but I get the distinct feeling that the % is VERY VERY low.
