ESCONDIDO — As construction of the Eclipse and Mountain House projects nears completion, the Escondido City Council is taking the final steps toward establishing a Mello-Roos tax to pay for public infrastructure improvements at the new developments.
During its April 10 meeting, the council unanimously approved the issuance and sale of special tax bonds for the Eclipse/Mountain House community facilities district (CFD). The bonds will not cost the city any money because the district’s property owners will pay for them through extra taxes.
Established by the Mello-Roos Act in 1982, a CFD or Mello-Roos is a special tax district that provides developers with an alternative method of financing the cost of building and maintaining public infrastructure, such as sidewalks, streetlights, and other amenities and services.
Like other tax assessments, the CFD will appear on the homeowners’ property tax bill. According to Finance Director Christina Holmes, the estimated principal amount of the tax is $3.36 million.
In 2021, the City Council authorized a deposit account and reimbursement agreement between the city and developer CalWest Living for both developments, taking the first steps to establish a special tax district.
The following year, the council agreed to establish a Mello-Roos district and promised to postpone the issuance and sale of tax bonds until construction was near completion.
The Eclipse is a 113-unit, three-story townhome project located at 461 Carina Glen off Centre City Parkway, located within an urban area near the southern end of town.
Mountain House is a 36-home, single-family development atop a mountain off Mesa Rock Road in Woodland Heights Glen. The gated neighborhood, which is 1,500 feet above sea level, overlooks Interstate 15 on the city’s north end.
According to Livabl.com, Eclipse homes sold for between $618,000 and $835,000, and Mountain House homes are currently listed between $1.3 and $1.9 million.
Holmes said out of Eclipse’s 113 homes, 97 have closed, with the final 16 currently in escrow and due to close within the next month.
