CHAPTER 2.5. The Mello-Roos Community Facilities Act of 1982

Chapter 2.5 added by Stats. 1982, Ch. 1451, Sec. 1.

§§ 53311–53368.3 · 152 sections

1. ARTICLE 1. General Provisions §§ 53311–53317.5 · 32 sections

   • § 53311 This chapter shall be known and may be cited as the “Mello-Roos Community Facilities Act of 1982”.
   • § 53311.5 This chapter provides an alternative method of financing certain public capital facilities and services, especially in developing areas and areas undergoing…
   • § 53312 Any provision in this chapter which conflicts with any other provision of law shall prevail over the other provision of law.
   • § 53312.5 The local agency may take any actions or make any determinations which it determines are necessary or convenient to carry out the purposes of this chapter and…
   • § 53312.7 (a) On and after January 1, 1994, a local agency may initiate proceedings to establish a district pursuant to this chapter only if it has first considered and…
   • § 53312.8 (a) (1) Territory that is dedicated or restricted to agricultural, open-space, or conservation uses may not be included within or annexed to a community…
   • § 53313 A community facilities district may be established under this chapter to finance any one or more of the following types of services within an area: (a) Police…
   • § 53313.1 To the extent that any capital facility is provided under this chapter, a duplicate levy, impact fee, or other exaction may not be required for the same…
   • § 53313.4 Any territory within a community facilities district established for the acquisition or improvement of school facilities for a school district shall be exempt…
   • § 53313.5 A community facilities district may also finance the purchase, construction, expansion, improvement, or rehabilitation of any real or other tangible property…
   • § 53313.51 The legislative body may enter into an agreement for the construction of discrete portions or phases of facilities to be constructed and purchased consistent…
   • § 53313.6 The legislative body may provide for adjustments in ad valorem property taxes pursuant to Section 53313.7 within a community facilities district only after…
   • § 53313.7 (a) Upon making the findings pursuant to Section 53313.6, the legislative body may, with the concurrence of the legislative body which levied the property tax…
   • § 53313.9 (a) All or any part of the cost of any school facilities financed by a community facilities district may be shared by the State Allocation Board pursuant to…
   • § 53314 The legislative body may from time to time transfer moneys to a community facilities district or to an improvement area within a community facilities district,…
   • § 53314.3 In the first fiscal year in which a special tax or charge is levied for any facility or for any services in a community facilities district or a zone within a…
   • § 53314.5 Pursuant to a resolution adopted by the legislative body, the legislative body may appropriate any of its available moneys to a revolving fund to be used for…
   • § 53314.6 (a) In connection with the financing of services and facilities pursuant to subdivision (f) of Section 53313 and subdivision (k) of Section 53313.5, the…
   • § 53314.7 (a) Any responsible party as defined by subdivision (a) of Section 78145 of the Health and Safety Code shall be liable to the district for the costs incurred…
   • § 53314.8 At any time either before or after the formation of the district, the legislative body may provide, by ordinance, that for a period specified in the ordinance,…
   • § 53314.9 (a) Notwithstanding Section 53313.5, at any time either before or after the formation of the district, the legislative body may accept advances of funds or…
   • § 53315 This chapter shall be liberally construed in order to effectuate its purposes. No error, irregularity, informality, and no neglect or omission of any officer,…
   • § 53315.3 The failure of any person to receive a notice, resolution, order, or other matter shall not affect in any way whatsoever the validity of any proceedings taken…
   • § 53315.6 When any proceeding is initiated under this chapter by a legislative body other than that of a city or county, a copy of the resolution of intention shall be…
   • § 53315.8 A county may not form a district within the territorial jurisdiction of a city without the consent of the legislative body of the city.
   • § 53316 This chapter applies to all local agencies insofar as those entities have the power to install or contribute revenue for any of the facilities or provide or…
   • § 53316.2 (a) A community facilities district may finance facilities to be owned or operated by a public agency other than the agency that created the district, or…
   • § 53316.4 The agreement entered into pursuant to Section 53316.2 shall contain a description of the facilities and services to be provided under the agreement, and any…
   • § 53316.6 The agreement entered into pursuant to Section 53316.2 may provide for the division of responsibility to provide any of the facilities or services among the…
   • § 53317 Unless the context otherwise requires, the definitions contained in this article shall govern the construction of this chapter. (a) “Clerk” means the clerk of…
   • § 53317.3 If property not otherwise exempt from a special tax levied pursuant to this chapter is acquired by a public entity through a negotiated transaction, or by gift…
   • § 53317.5 If property subject to a special tax levied pursuant to this chapter is acquired by a public entity through eminent domain proceedings, the obligation to pay…
2. ARTICLE 2. Proceedings to Create a Community Facilities District §§ 53318–53329.6 · 26 sections

   • § 53318 Proceedings for the establishment of a community facilities district may be instituted by the legislative body on its own initiative and shall be instituted by…
   • § 53318.5 Notwithstanding any provision of Part 1 (commencing with Section 56000) of Division 3, a local agency formation commission shall have no power or duty to…
   • § 53319 A petition requesting the institution of proceedings for the establishment of a community facilities district shall do all of the following: (a) Request the…
   • § 53320 Within 90 days after either a written request by two members of the legislative body or a petition requesting the institution of proceedings for the…
   • § 53321 Proceedings for the establishment of a community facilities district shall be instituted by the adoption of a resolution of intention to establish the district…
   • § 53321.5 At the time of the adoption of the resolution of intention to establish a community facilities district, the legislative body shall direct each of its officers…
   • § 53322 (a) The clerk of the legislative body shall publish a notice of the hearing pursuant to Section 6061 in a newspaper of general circulation published in the…
   • § 53322.4 The clerk of the legislative body may also give notice of the hearing by first-class mail to each registered voter and to each landowner within the proposed…
   • § 53323 At the hearing, protests against the establishment of the district, the extent of the district, or the furnishing of specified types of public facilities or…
   • § 53324 (a) If 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be included in the…
   • § 53325 The hearing may be continued from time to time, but shall be completed within 30 days, except that if the legislative body finds that the complexity of the…
   • § 53325.1 (a) If the legislative body determines to establish the district, it shall adopt a resolution of formation establishing the district. The resolution of…
   • § 53325.3 A tax imposed pursuant to this chapter is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of…
   • § 53325.5 (a) A community facilities district may include areas of territory that are not contiguous. (b) In establishing the boundaries of the district, the legislative…
   • § 53325.6 Land devoted primarily to agricultural, timber, or livestock uses and being used for the commercial production of agricultural, timber, or livestock products…
   • § 53325.7 The legislative body may submit a proposition to establish or change the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of…
   • § 53326 (a) The legislative body shall then submit the levy of any special taxes to the qualified electors of the proposed community facilities district or to the…
   • § 53327 (a) Except as otherwise provided in this chapter, the provisions of law regulating elections of the local agency that calls an election pursuant to this…
   • § 53327.5 (a) If the election is to be conducted by mail ballot, the election official conducting the election shall provide ballots and election materials pursuant to…
   • § 53328 After the canvass of returns of any election pursuant to Section 53326, the legislative body may, pursuant to Section 53340, levy any special tax as specified…
   • § 53328.1 (a) As an alternate and independent procedure for forming a community facilities district, the legislative body may form a community facilities district that…
   • § 53328.3 Upon a determination by the legislative body that the requisite two-thirds of votes cast in an election held pursuant to Section 53326 are in favor of levying…
   • § 53328.5 Division 4.5 (commencing with Section 3100) of the Streets and Highways Code applies with respect to any proceedings undertaken pursuant to this chapter. This…
   • § 53329 After the canvass of returns of any election conducted pursuant to Section 53326, the legislative body shall take no further action with respect to authorizing…
   • § 53329.5 (a) The owners of three-fourths of the area of lands taxed or liable to be taxed, or their agents (who shall declare under penalty of perjury that they are…
   • § 53329.6 In order to reduce the procedural burdens on local agencies, this chapter establishes certain procedures by which one or more property owners may vote in favor…
3. ARTICLE 3. Extension of Authorized Facilities and Services and Changes in Special Taxes §§ 53330–53338.5 · 14 sections

   • § 53330 Upon the establishment of a community facilities district, only the public facilities and services as described in the resolution of formation may be financed…
   • § 53330.3 Under no circumstances shall any buyer or prospective buyer of any completed structure for which a certificate of occupancy for private residential use has…
   • § 53330.5 Upon approval of a special tax pursuant to Article 2 (commencing with Section 53318), the special tax may be levied only at the rate and may be apportioned…
   • § 53330.7 Except as otherwise provided in this article, the legislative body may, at any time, after conducting a public hearing, eliminate one or more of the types of…
   • § 53331 (a) If the legislative body determines that the public convenience and necessity require any change in the types of authorized public facilities or services…
   • § 53331.5 In addition to the other changes that may be made pursuant to this article, the legislative body may use the procedures of this article to gain authorization…
   • § 53332 (a) If a petition signed by 25 percent or more of the registered voters residing in the district, or by the owners of 25 percent or more of the land within the…
   • § 53333 The petition shall request the legislative body to commence proceedings to make specified changes to a named community facilities district. The petition may…
   • § 53334 The resolution of consideration to alter the types of public facilities and services financed by an established community facilities district, or to levy a new…
   • § 53335 The clerk of the legislative body shall give notice of the hearing in the same manner and within the same time as provided for the giving of notice of a…
   • § 53336 At the hearing, protests against the proposals described in the resolution may be made orally, or in writing by any interested persons. Any protests pertaining…
   • § 53337 If 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the district, or the owners of one-half or more of…
   • § 53338 (a) The hearing may be continued from time to time, but shall be completed within 30 days, except that if the legislative body finds that the complexity of the…
   • § 53338.5 The legislative body may, by ordinance, dissolve any existing Mello-Roos Community Facilities District which it has created upon making all of the following…
4. ARTICLE 3.5. Annexation of Territory §§ 53339–53339.9 · 9 sections

   • § 53339 Territory may be annexed to an existing community facilities district as provided in this article. The annexed territory need not be contiguous to territory…
   • § 53339.2 If the legislative body of the local agency that created a community facilities district determines that public convenience and necessity require that…
   • § 53339.3 The resolution of intention to annex the territory or to provide for future annexation of territory shall do all of the following: (a) State the name of the…
   • § 53339.4 The clerk of the legislative body shall give notice of the hearing in the same manner and within the same time as provided for the giving of notice of a…
   • § 53339.5 At the hearing, protests against the proposals described in the resolution of intention may be made orally or in writing by any interested person. Any protests…
   • § 53339.6 If 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the existing community facilities district, or if…
   • § 53339.7 (a) The hearing may be continued from time to time, but shall be completed within 30 days. At the conclusion of the hearing, the legislative body may abandon…
   • § 53339.8 (a) After the canvass of returns of any election conducted in accordance with Section 53339.7, the legislative body shall determine that the area proposed to…
   • § 53339.9 After the canvass of returns of any election conducted in accordance with Section 53339.7, the legislative body shall take no further action on annexing the…
5. ARTICLE 4. Procedures for Levying §§ 53340–53344.4 · 14 sections

   • § 53340 (a) After a community facilities district has been created and authorized to levy specified special taxes pursuant to Article 2 (commencing with Section…
   • § 53340.1 (a) If a public agency owning property, including property held in trust for any beneficiary, which is exempt from a special tax pursuant to Section 53340…
   • § 53340.2 (a) The legislative body levying the special tax shall designate an office, department, or bureau of the local agency that shall be responsible for annually…
   • § 53340.3 At the request of the legislative body, the tax collector may set forth on the tax bill descriptive information provided by the legislative body to identify…
   • § 53340.5 If the legislative body of the local agency levying the special taxes is not the legislative body of a county and those special taxes are collected by county…
   • § 53340.7 If the legislative body supplies to the tax collector each year a listing of the specific amount due from each parcel within the district, and the tax…
   • § 53341 Any action or proceeding to attack, review, set aside, void, or annul the levy of a special tax or an increase in a special tax pursuant to this chapter shall…
   • § 53341.5 (a) If a lot, parcel, or unit of a subdivision is subject to a special tax levied pursuant to this chapter, the subdivider, his or her agent, or…
   • § 53343 Any special taxes collected pursuant to this chapter may only be used for facilities and services authorized by this chapter.
   • § 53343.1 A community facilities district formed after January 1, 1992, shall prepare, if requested by a person who resides in or owns property in the district, within…
   • § 53343.2 A local agency that has an Internet Web site, within seven months after the last day of each fiscal year of the district, shall display prominently on its…
   • § 53344 In the event that the legislative body has specified conditions pursuant to Section 53321 under which the obligation to pay the special tax identified therein…
   • § 53344.1 (a) The legislative body may provide in the resolution of intention or the resolution of consideration, and in documents setting forth the rights of the…
   • § 53344.4 Any district preparing a report pursuant to Section 53343.1 shall not be required to comply with Section 50075.3.
6. ARTICLE 5. Bonds §§ 53345–53365.7 · 53 sections

   • § 53345 Whenever the legislative body deems it necessary for the community facilities district to incur a bonded indebtedness, it shall, by resolution, set forth all…
   • § 53345.3 The amount of the proposed bonded indebtedness may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose…
   • § 53345.8 (a) The legislative body may sell bonds pursuant to this chapter only if it determines prior to the award of sale of bonds that the value of the real property…
   • § 53346 The clerk of the legislative body shall publish a notice of the hearing pursuant to Section 6061 in a newspaper of general circulation circulated within the…
   • § 53348 At the time and place fixed for the hearing on the resolution declaring the necessity for incurring the bonded indebtedness or at any time and place to which…
   • § 53349 At the hearing any person interested, including persons owning property within the area, may appear and present any matters material to the questions set forth…
   • § 53350 (a) For purposes of financing of, or contributing to the financing of, specified public facilities, the legislative body may by resolution designate a portion…
   • § 53351 After the legislative body has made its determination pursuant to Section 53350, if it deems it necessary to incur the bonded indebtedness, it shall by…
   • § 53352 The resolution provided for in Section 53351 shall constitute the notice of such special bond election and such resolution shall be published in a newspaper of…
   • § 53353.5 (a) Propositions relating to the levy of a special tax, the incurring of bonded indebtedness, or to establish or change an appropriations limit, or any…
   • § 53354 If the area designated in the resolution adopted pursuant to Section 53351 does not include the entire community facilities district, a separate ballot shall…
   • § 53355 A two-thirds vote shall be required for the issuance of bonds under authority of this chapter.
   • § 53355.5 (a) As an alternate and independent procedure for conducting an election on the proposition to authorize bonded indebtedness for a community facilities…
   • § 53355.7 The refusal by a person to undertake or cause to be undertaken an act relating to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title…
   • § 53356 If more than two-thirds of the votes cast at the election are in favor of incurring the indebtedness, the legislative body may, by resolution, at the time or…
   • § 53356.03 The proceeds of any bond, note, or other security issued pursuant to this chapter, or the proceeds of any bond, note, or other security issued pursuant to any…
   • § 53356.05 The bond indenture or other bond documents may provide that the legislative body agrees to notify one or more parties, including the underwriter or other first…
   • § 53356.1 (a) As a cumulative remedy, if debt is outstanding, the legislative body may, not later than four years after the due date of the last installment of principal…
   • § 53356.1.5 (a) This section applies if delinquent special taxes, together with any penalties, interest, and costs, are collected through the sale of the property by the…
   • § 53356.2 (a) When any foreclosure actions are ordered by the local agency or legislative body, or when subsequent installments and interest that are also to be made the…
   • § 53356.3 At any time after the tax collector has been relieved of his or her duty to collect sums under Section 53356.2 and before judgment in a foreclosure action, the…
   • § 53356.4 The foreclosure action shall be brought in the name of the local agency or trustee on behalf of the bondholders pursuant to Section 53356.1, and may be brought…
   • § 53356.5 (a) Any judgment shall decree the amount of the continuing lien against each parcel to be foreclosed, and shall order the parcel to be sold on execution as in…
   • § 53356.6 Property sold hereunder may not be sold for less than the amount of the judgment plus postjudgment interest and authorized costs without the consent of the…
   • § 53356.7 No special tax installment, interest or penalties thereon, or deed shall be held invalid for any error in computation if the error is found to be comparatively…
   • § 53356.8 Provided the legislative body permits bonds or debt to be tendered for special taxes and the penalties and interest thereon pursuant to Section 53344.1, if the…
   • § 53356.9 (a) Notwithstanding any other provision of this chapter or any other provision of law applicable to foreclosure action, the judgment of foreclosure and sale of…
   • § 53357 The bonds shall be signed by the chairperson of the legislative body and countersigned by the clerk of the legislative body or his or her deputy. All…
   • § 53357.1 (a) In connection with the issuance of bonds in which a property owner agrees, by written consent, to disclose certain information on a continuous basis…
   • § 53358 When the legislative body provides for the fixing and levying of special taxes and charges for the community facilities district it shall also provide for the…
   • § 53359 An action to determine the validity of bonds issued pursuant to this chapter or the validity of any special taxes levied pursuant to this chapter may be…
   • § 53359.5 (a) The legislative body shall, no later than 30 days prior to the sale of any bonds pursuant to this article, give written notice of the proposed sale to the…
   • § 53359.7 Current information on the items listed in Section 53359.5 is a matter of public record, within the meaning of the California Public Records Act (Division 10…
   • § 53360 The community facilities district may sell the bonds so issued at the times or in the manner the legislative body deems to be to the public interest. However,…
   • § 53360.4 Notwithstanding Section 53360, the legislative body may sell bonds at private sale, without advertising for bids, if the legislative body determines that the…
   • § 53360.7 The legislative body may provide that bonds shall bear a variable interest rate, and for the manner and intervals in which the rate shall vary. The variable…
   • § 53361 Any bonds issued by a district organized under the provisions of this chapter are hereby given the same force, value and use as bonds issued by any…
   • § 53361.1 All bonds issued by any district payable from taxes or charges are legal investments for all trust funds, for the trust funds of all insurance companies, the…
   • § 53362 The legislative body may, by resolution, issue new bonds to refund any or all of the district bonds outstanding or improvement area bonds outstanding that have…
   • § 53362.5 Refunding bonds shall not be issued if the total interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the…
   • § 53362.7 The total authorized amount of the bonded indebtedness of a district or an improvement area therein, as approved by the qualified voter thereof, shall not be…
   • § 53363 Except as otherwise provided in this article, the legislative body may issue refunding bonds without repeating any of the procedures required for the approval…
   • § 53363.2 If the legislative body determines to issue refunding bonds pursuant to this article it shall adopt a resolution providing for their issuance. The resolution…
   • § 53363.5 Any refunding bonds issued pursuant to this article may be exchanged for the bonds to be refunded on such basis as the legislative body determines is for the…
   • § 53363.7 The designated costs of issuing the refunding bonds, as defined by Section 53363.8, may be paid by the purchaser of the refunding bonds or may be paid from any…
   • § 53363.8 For purposes of this article, the term “designated costs of issuing the refunding bonds” means any of the following costs and expenses designated by the…
   • § 53363.9 (a) The proceeds and investments in the “refunding fund” shall be in an amount sufficient to meet either the requirements of paragraph (1) or paragraph (2) at…
   • § 53364 Following the issuance of any refunding bonds pursuant to this article, the treasurer of the local agency shall provide for the payment of principal and…
   • § 53364.2 (a) If further facilities or services are authorized to be financed by the district, savings achieved through the issuance of refunding bonds may be used by…
   • § 53364.5 Any bonds issued by the district may be made callable by resolution of the legislative body adopted at or prior to the time of issuing the bonds. When bonds…
   • § 53365 Notice designating the bonds called for redemption shall be mailed to the underwriter or other first purchaser and to the registered owners of the bonds to be…
   • § 53365.5 If on the date fixed for redemption, the area has provided funds available for payment of the principal and interest of the bonds called, interest on the bonds…
   • § 53365.7 (a) The legislative body may, by resolution and without the necessity of calling and holding an election, borrow money in anticipation of the sale of bonds…
7. ARTICLE 6. Transfer of Community Facilities Districts §§ 53368–53368.3 · 4 sections

   • § 53368 Unless the context otherwise requires, the definitions contained in this section shall govern the construction of this article. (a) “City” means any city,…
   • § 53368.1 Notwithstanding any other provision of law, the authority for the governance of one or more districts may be transferred from the jurisdiction of a county to…
   • § 53368.2 The transfer of jurisdiction of a district from the governing board of the county to the governing board of the city shall be effective only if the following…
   • § 53368.3 Neither the enactment of this article nor any action taken pursuant hereto with respect to the transfer of jurisdiction of a district, nor the failure of any…