Nowadays, there are a lot of CFD consulting companies in California America. However, most people don’t know the history of CFD.

The 1982 Mello-roos community facilities act was created to provide an alternative financing method. The CFDs seek public financing by selling bonds for the purpose of funding public services and improvements. These services may include water, streets, sewage, electricity, drainage, schools, infrastructure, police protection and parks to newly developing areas.

Property owners paid a special property tax that was used to make the payments of interests on bonds.

The creation of a CFD

Community facilities districts are created by a sponsoring government agency that operates locally. The proposed CFD will include all properties that will largely benefit from the services to be provided and the improvements to be constructed. In order to form CFD consulting firms in California America, there should be a two-thirds majority vote of the people living within the proposed boundaries. After approving, a special tax lien is then placed against every property within the CFD.

California water district

This is typically the lead agency of different CFDs that were formed with the aim of financing the construction of certain facilities for the public and the payment of water connection fees.

The bonds can only be paid from the annual special tax which is collected through the county of riverside. The tax is collected from the property owners located within the CFD. In case the special taxes aren’t paid when due, a shortfall to pay the debt will be paid from the funds held in the bond reserve funds. It may also be paid from the proceeds.

The CFD consulting firm has the right and obligation to foreclose on the property in case special taxes are delinquent for more than ninety days in California America. Neither the credit nor the faith nor the taxing power of California water district is pledged to the payment of the bonds.