• How are Community Facilities Districts (CFDs) funded?
• I received a letter from the City of Rancho Cucamonga concerning delinquent community facilities district property tax payments. What does this letter mean?
• What is a Community Facilities District (CFD) and how many are located in the City?
• What is a Mello-Roos District?
• Who makes the choice between a Community Facility District (CFD), Assessment District, and Benefit Assessment District?

How are Community Facilities Districts (CFDs) funded?
CFDs are often funded through the sale of Land Secured municipal bonds to pay for the initial costs of planning, acquisition, and development of the public improvements or services that are required from a new development.  If bonds are sold, the property owners will pay the yearly special tax until the bonds are paid in full.  On average, municipal bonds have a maturity schedule between twenty-five and thirty years.  If no bonds are sold, the annual special tax will continue for the life of the services.

There are currently thirteen general CFDs and two Fire Services CFDs.

I received a letter from the City of Rancho Cucamonga concerning delinquent community facilities district property tax payments. What does this letter mean?
The City of Rancho Cucamonga is obligated to the bond holders of Community Facilities Districts bonds within the City of Rancho Cucamonga to notify property owners that they are delinquent in their payment of the special tax. The district has the legal right to start foreclosure proceedings on delinquent properties within 90 to 180 days of being in arrears.

The Special Districts Division can provide the delinquent property owner with payment information and the contact phone number for the County of San Bernardino Tax Collector. The County of San Bernardino Tax Collector offers a payment plan for delinquent property owners.

If the delinquent property owner can not find a suitable solution to the delinquency issue with the County of San Bernardino Tax Collector, the property owner can pay directly to the City of Rancho Cucamonga the delinquent special tax amount. The property owner should contact the GIS/Special Districts Division at (909) 477-2700.

What is a Community Facilities District (CFD) and how many are located in the City?
A CFD is a Special Tax District provided in State Law that  funds public improvements and ongoing services within an identified area.  Parks, streets, sewer improvements, and public safety services are some of the public improvements and services that may be financed by a CFD.  

There are currently thirteen (13) general CFDs and two (2) Fire Services CFDs.

What is a Mello-Roos District?
A Mello-Roos District is also known as a Community Facilities District. The Community Facilities Act of 1982 was written by California Senators Henry Mello and Mike Roos. 

Who makes the choice between a Community Facility District (CFD), Assessment District, and Benefit Assessment District?
The developer first approaches the City with a proposal to form a special assessment district.  The developer is required to submit documentation to support this request; entitlements, and type of project such as commercial/industrial or residential and infrastructure that is being proposed to be built.

The City, along with their financial advisors and tax consultants (the Financing Team) review the documentation and determine the type of special assessment district based on the facilities proposed to be funded and if on-going maintenance will be required.  Additionally, consideration will be given to any existing and/or overlapping districts against this project to determine if the parcels that will be created can handle the additional burden.  

When all the criteria has been met the City and the Financing Team will determine the appropriate special assessment district.