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Somewhere in that, there was one page saying our Mello Roos for the CFD was expiring in 2016. This was bond issued in 1991 due to be paid off in 2016 per the escrow company.
Recently I digged deeper into this and found that the 1992 bonds mentioned above, were in fact refinanced in 1998. So the new bonds will be paid off in 2020 instead of 2016. — However my escrow company never really pointed that out to me.
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From these two paragraphs, I now know the development where you live. 🙂
That development did indeed have the MR refinanced and, as a result, some homeowners saw quite a significant drop in their MR tax.
There were at least a couple of owners in the area that had prepaid their MR, thinking they were being financially wise by avoiding the auto 2% increases. Well, the refi eliminated the yearly 2% increases also. So the owners that prepaid were SOL.
That is why I would not recommend pre-paying.
This is a very popular topic on this site and it comes up every few months. If one googles “site:piggington.com mello roos” or something similar with the particular aspect you’re interested in, you’ll get oodles of threads to read through.
Two that are particularly interesting…this one gives the link to the govt write-up on MR deductibility:
(ps – there are at least a couple of developments in north county where original owners were given the option of prepaying the MR when they purchased. About a quarter did in one development. I haven’t done it, but it would be an interesting case study to see if their resale value has proven to be higher)
