Mello Roos or assessments aren’t the fault of the local government, it is the builder tricking you. Two developments, side by side. Developer A pays for the streets, sidewalks, landscaping and parks, then builds that into the price. Developer B decides to finance all that stuff and have the buyers pay off the loan in a mello roos bond but then can advertise a lower price or have larger profits. So if you paid more for your house in devlopment A to not have mello roos, if there is a baolout for those with mello roos then it is exactly the same as bailing out the subprimes, helping those who made bad choices and punishing those who were prudent. Mello Roos are not demanded by the government, it’s the developer that chooses to set it up, they are more than allowed to pay cash for the infrastructure, they just choose not to sometimes. Personally I’ve owned a number of new homes and have never had one with mello roos, it can be done, it just costs a little more.
