Lolly Enriquez Discusses Mello-Roos District Formation

Lolly Enriquez was quoted in the Law360 article, “A Decades-Old Infrastructure Funding Idea Finds New Ground.” (subscription required) The article looks at how states—such as California–have allowed developers to create special districts in which future property owners, instead of general taxpayers, pay for the infrastructure required for neighborhoods, and how states that are now experiencing population booms—such as Tennessee—are starting to implement this plan.

For the article, Lolly discussed how in California local agencies can establish a community facilities district, also known as a Mello-Roos district, to help fund infrastructure.

Commenting on how Mello-Roos is typically employed in California, Lolly said, “Mello-Roos districts are often created for tract home projects in the state's suburbs.” She added, “[it] helps a landowner finance public improvements for the tract home development, such as streets, sewers, storm drains and schools through a special tax on homeowners’ property bills and the tax can be used on a pay-as-you-go basis or to repay bonds.”

She continued, “The typical process developers go through is this: A sole landowner of a large tract of land will approach the city and petition to form a district. If the city adopts a resolution of intent to form the district and intent to establish a Mello-Roos tax for it, a ballot is sent to landowners whose properties lie within the proposed district, and a public hearing follows. Landowners within the area must approve the measure by a two-thirds vote to form the district.”