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special assessments
- Thread starter yes4me
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Sid Holderly
Senior Member
- Joined
- Jun 16, 2005
- Professional Status
- Certified Residential Appraiser
- State
- Indiana
A special assessment in this area is generally for sidewalk replacement or stormwater drainage needs and may be one time or spread over a few years. In this area one would have to go to the assessor's office to find the actual term and total description.
Randolph Kinney
Elite Member
- Joined
- Apr 7, 2005
- Professional Status
- Retired Appraiser
- State
- North Carolina
Mello-Roos, for example.
http://en.wikipedia.org/wiki/Mello-Roos
Check your county treasurer for all bond indebtedness against the property.
Realist shows you all taxes including Mello-Roos in the total.
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moh malekpour
Elite Member
- Joined
- May 25, 2002
- Professional Status
- Certified Residential Appraiser
- State
- California
Special assessment is a temporary fee that is approved by the board of directors of the HOA due to temporary expenses that the HOA budget is not enough to cover it. Lets say the wind or heavy rain causes some damage to the common area of the project that needs to be fixed right away but HOA budget from regular HOA fees is not enough to cover that unexpected incident. In this case, the board has a power to pass an special assessment and homeowners are required to either pay in lump sump or in few installments. Usually it is a short time payments but its enforcement is similar to HOA fee. Owners have to pay or get a lien against their condos.
Most of the time special assessment does not show in MLS because it is possible that the special assessment was not issued when the listing agent took the listing or the listing agent did not ask the homeowner whether there was an special assessment or not.
Special assessment is not part of the property tax and is not part of HOA fee but it is in addition to HOA fee temporarily. Special Assessment usually has a termination date but HOA fee doesn't. This is the item that should be asked from property management.
Most of the time special assessment does not show in MLS because it is possible that the special assessment was not issued when the listing agent took the listing or the listing agent did not ask the homeowner whether there was an special assessment or not.
Special assessment is not part of the property tax and is not part of HOA fee but it is in addition to HOA fee temporarily. Special Assessment usually has a termination date but HOA fee doesn't. This is the item that should be asked from property management.
Last edited:
Randolph Kinney
Elite Member
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- Apr 7, 2005
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- Retired Appraiser
- State
- North Carolina
B4-1.4-09: Special Assessment or Community Facilities Districts Appraisal Requirements (04/15/2014)
https://www.fanniemae.com/content/guide/selling/b4/1.4/09.html
https://www.fanniemae.com/content/guide/selling/b4/1.4/09.html
moh malekpour
Elite Member
- Joined
- May 25, 2002
- Professional Status
- Certified Residential Appraiser
- State
- California
When you appraising a condo from a condo project, are you looking for Mello Roos tax or the project special assessment fee? In Orange County and some other areas of Southern California, the special assessment tax is called Mello Roos tax and is part of property tax assessment bill. All cities in South Orange County that were built after 1982 have Mello Roos tax and most agents disclose them but they have no effect on the property values because they all have the same tax and since this tax is already included in property tax and the property tax is available from Assessor's office and entered in tax section of page 1, there is no need to include this tax again.
The project special assessment, however, is levied by the board and it sometimes has adverser effect on the property values because it is limited to certain projects with budget shortage and the amount sometimes is huge and duration sometimes is 1-2 years.
The project special assessment, however, is levied by the board and it sometimes has adverser effect on the property values because it is limited to certain projects with budget shortage and the amount sometimes is huge and duration sometimes is 1-2 years.
Last edited:
Randolph Kinney
Elite Member
- Joined
- Apr 7, 2005
- Professional Status
- Retired Appraiser
- State
- North Carolina
Mello-Roos enabled "Community Facilities Districts" (CFDs) to be established by local government agencies as a means of obtaining community funding. Counties, cities, special districts, joint powers authority, and schools districts use these financing districts to pay for public works and some public services.
It is a bond indebtedness against all properties in the district.
A Mello-Roos District is an area where a special property tax on real estate, in addition to the normal property tax, is imposed on those real property owners within a Community Facilities District. These districts seek public financing through the sale of bonds for the purpose of financing public improvements and services.
According to Fannie:
Appraisal Requirements for Properties Located in Special Assessment Districts
The appraisal requirements for properties located in special assessment districts must report any special assessments that affect the property, and
note in the appraisal report if the special assessment district is experiencing financial difficulty and that the difficulty has an effect on the value or marketability of the subject property.
To ensure that the reaction of the market to the potential liabilities that may arise within a financially troubled special assessment district is reflected in his or her analysis, the appraiser must consider current and expired listings or properties for sale within the district and any pending contract sales and recent closed sales within the district.
There may be some instances in which the financial difficulty of a special assessment district is so severe that its actual effect on the value and marketability of a property is not measurable because there is no comparable market data available to enable the appraiser to arrive at a reliable opinion of market value. When this is the case, a mortgage secured by a property in that district will not be eligible for delivery to Fannie Mae until such time that an active market develops that will enable the appraiser to demonstrate the value and marketability of the subject property.
During the meltdown of 2008 with so many homes that went into foreclosure, the property taxes and the CFD taxes were delinquent. The CFDs reassessed the paying property owners to make up for the delinquency to pay bond holders. It does make a difference on market value and the marketability of a home.
It is a bond indebtedness against all properties in the district.
A Mello-Roos District is an area where a special property tax on real estate, in addition to the normal property tax, is imposed on those real property owners within a Community Facilities District. These districts seek public financing through the sale of bonds for the purpose of financing public improvements and services.
According to Fannie:
Appraisal Requirements for Properties Located in Special Assessment Districts
The appraisal requirements for properties located in special assessment districts must report any special assessments that affect the property, and
note in the appraisal report if the special assessment district is experiencing financial difficulty and that the difficulty has an effect on the value or marketability of the subject property.
To ensure that the reaction of the market to the potential liabilities that may arise within a financially troubled special assessment district is reflected in his or her analysis, the appraiser must consider current and expired listings or properties for sale within the district and any pending contract sales and recent closed sales within the district.
There may be some instances in which the financial difficulty of a special assessment district is so severe that its actual effect on the value and marketability of a property is not measurable because there is no comparable market data available to enable the appraiser to arrive at a reliable opinion of market value. When this is the case, a mortgage secured by a property in that district will not be eligible for delivery to Fannie Mae until such time that an active market develops that will enable the appraiser to demonstrate the value and marketability of the subject property.
During the meltdown of 2008 with so many homes that went into foreclosure, the property taxes and the CFD taxes were delinquent. The CFDs reassessed the paying property owners to make up for the delinquency to pay bond holders. It does make a difference on market value and the marketability of a home.
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