This is the Story of a botch Mello Roos Offering, the first for the City of Indio.
Indio Community Facilities District (CFD) 2004-3 is a Mello Roos Tax District issued by The City of Indio California, and it was their very first. An Intro to Mello Roos Tax Districts
Mello Roos Tax is an extra tax that a City may place on new development and the City gets say $26.3 million and splits it with the Developer.
Here they took $26.3 million, and used it for things that did not help the development.
It was 98% completed.
It was used to help another undeveloped area.
It was used to help the Indio Water Authority build its own infrastructure.
But should the undeveloped area pay it back?
The City says no.
That does not pass the smell test. Why would the City do that?
Rooftops, yes they want homes in Indio.
They now have a new developer and have worked out a secret deal which uses Area 1 money as credits for the new developer to build.
The builder will have no Mello Roos Tax.
The houses will sell for $70,000 more without the Mello Roos Tax.
Won’t that hurt Area 1 home sales?
Yes, that is why the fight.
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How is that possible?
The City issues a bond for the money and future residents or homeowners, who move in pay back the money over 30 years.
It is not easy to understand.
If there is a missed payment then the City can sell their house.
I forgot to mention, the Developer/landowner votes for the tax before they meet you.
It is hard to understand. When questioned by Area 1 home owners the City says. You signed the paper. Desert Sun February 4, 2014 by Tatiana Sanchez
I guess investors signed Bernie Madoff’s papers acknowledging they may loose money, but is it legal?
Why did this confusing tax happen in the first place?
It was created because California Proposition 13 limited property tax to 1%. Proposition 13 and Mello Roos Taxes
This allows Developers and a City uses their tax exempt status to help issue bonds and every deal is done behind closed doors, and there is no oversight.
None?
No None!
Is there a Mello Roos Police? No and believe you me I have begged for help to expose the problem.
No one other than the lawyers who make money from it who understand it.
Sounds like that should change.
The Idea for the City (“ME”) to have instant money in their pockets and have future residents pay the bill over 30 years is appealing. To the City and Developer.
So what happened here?
It is really bad, and it would take a long to explain it.
If that interests you there is much more.
What happened here is really unfair, and the City appears to have mismanaged $26.3 million.
You mean they did not follow the rules?
If you look at the map of Indio below, only 1 community pays $360.00 per month for 30 years. Or for that matter any Mello Roos Tax.
It paid for Wyndham Resorts Water problems and $9 million for others.
Certainly someone wants to pay them back. Don’t They? I mean it is only fair.
But who owns the properties?
Rabobank Na.A. in one of their various Limited Liability Companies
RB Indio Holdings, LLC or RB Terra Lago or even another with the builder K-Hovanian.
But they should be able to afford to pay more than the homeowners, shouldn’t they as they are a Bank and a major developer.
Area 1 Red – Area 2 Green -Wyndham Top
AREA 1 HOMEOWNERS PAY $360.00 PER MONTH FOR 30 YEARS AND ALL THE STREETS ARE PRIVATE.
98% of the infrastructures were in by the September 2005 $26.3 million funding.
And whats worse, there are also 110 lots owned by Rabobank, N.A. around the lake – &- they don’t pay either.
The City has made us fight to get anything.
Why would the City of Indio be afraid if they did all of this correctly and the money spent as they say?
Why would they not do a Forensic Audit?
Why not get a Bond Counsel Involved instead of the City Attorney?
Those are good questions and the City just ignores those questions.
If you just watch the recent council meeting on February 4, 2014, you would see what I believe are lies that the City Attorney is spouting or pontificating.
But what are you going to do?
Keep Fighting.
I bet you are getting paid alot to do this aren’t you?
No I am sorry to say but someone must do it so other will be protected, the Mello Roos Laws certainly don’t do it.
We must fight again.
WHO GOT THE MONEY – – -THE CITY OF INDIO.
AREA 1 LEFT EMPTY 110 LOTS AROUND THE LAKE. THEY DO NOT PAY ANYTHING. AREA 2 AND WYNDHAM RESORT PAY NOTHING AND BENEFIT.
