CERTAIN ASSESSMENT STATUTES
Since 1885, California has enacted numerous statutes relating to special taxes and assessments and to the
formation of assessment districts throughout the state. The following are among the important assessment acts.
Vrooman Street Act
Passed in 1885, this act conferred authority on city councils to grade and finish streets, construct sewers, etc.,
within municipalities or counties. It provides for an election and the issuance of bonds secured by special funds
collected under tax levy. It also provides for the acquisition of public utilities by the municipality or county.
A property owner may arrange for street grading according to official specifications and secure a reduction in
the amount of the assessment.
Street Improvement Act of 1911
This act is utilized more than any other for street improvements in this state. Assessments are due in equal
installments during the term of the bonds. The local legislative body determines the rate of interest on the
bonds. The amount of assessment appears on the tax bill as a lien against the property. It may be partially or
wholly prepaid at any time, including prior to issuance of the bonds.
The Improvement Bond Act of 1915
Under the terms of this act, a public agency can issue bonds to finance subdivision street improvements. Bonds
usually carry a maximum of 6 percent interest. Owners of affected property bear the cost to redeem the bond.
Under certain circumstances, an improvement district cannot issue bonds until the California Districts Securities
Commission has approved the project.
Mello-Roos
The Mello-Roos Community Facilities Act of 1982 provides for a wider variety of facilities and services than
other improvement bond acts and has no requirement that such improvements will specifically benefit
individual properties. Although a Mello-Roos assessment is secured by a lien against the property and the
maximum tax rate approved may be greater than what will be needed to retire the bonds, the principal amounts
of the bonds are not tied to any specific parcels. As such, Mello-Roos is on the order of a general property tax
levy for general fund benefits and is not appropriate for inclusion in the land value of the parcels. The amount
of any unpaid assessment(s) will not appear on the property tax bill, but will be separately levied and collected.
Civil Code Section 1102.6b requires that a seller of one to four dwelling units disclose a Mello-Roos
assessment.