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1. What is a CFD special tax?

A CFD special tax is levied on taxable property within a district area that is used to fund authorized public facilities and/or services.

2. When did the use of CFDs start? Why did they start?

Finding funding for local public facilities and services is very difficult. Particularly after the passage of Proposition 13 in 1978, cities were severely limited in their ability to finance such things as parks, infrastructure, and police and fire services. Senator Henry Mello and Assemblyman Mike Roos proposed the Mello-Roos Community Facilities Act of 1982 (California Government Code §53311), which gave California local governments access to community funding with the requirement that two-thirds of the voters or landowners in the proposed district must approve the special tax.

3. Why does Chino Hills use CFD special taxes?

Upon incorporation of the City in 1991, responsibility for CFDs 1, 2, 4, 5, 6, 8 and 9 was transferred to the City, with the City Council replacing the County Board of Supervisors as the legislative body for each CFD. The CFDs were formed to finance certain infrastructure in the development of the Chino Hills areas.
In 2000, the CFD 10 was formed to provide infrastructure facilities (roads, sanitary sewers, storm drains) for the Fairfield Ranch development area.
In 2015, the CFD 2015-1 (Vila Borba), was formed to provide funding for the maintenance of certain facilities including, but not limited to, the Vila Borba Park where the dog park is located.

4. How does a CFD special tax work?

Special taxes for a CFD are typically levied annually and are placed on the property tax bill issued by the County. The special taxes for CFDs created to finance authorized public facilities (infrastructure such as roads, sidewalks, water and sewer lines, police and fire stations, etc.) are typically used to pay back principal and interest on bonds that were issued for that particular CFD. Special Taxes for a CFD created to finance authorized public services are levied to pay for the service provided (such as lighting, landscaping, and maintenance of parks and trails, etc.).

5. What do CFD special taxes in Chino Hills pay for?

The City uses CFDs to finance both authorized public facilities and/or services.

6. Is my property in a CFD?

Look at your San Bernardino County tax bill for any taxes that contain the acronym “CFD.” Compare CFDs listed on the tax bill to the links listed on our Community Facilities Districts (Mello-Roos) page. Click those links to learn more about each CFD special tax.

7. Do CFD special taxes have a maximum amount?

All CFDs have maximum special tax amounts which cannot be exceeded. However, the amount of the special tax levied in a given year may be less than the maximum special tax rate. The amount of special taxes levied may fluctuate from year to year; however, they cannot exceed their annual maximum amount. Due to the fact that the annual CFD special taxes levied on a particular piece of property could be below the maximum special tax rate for that property, a potential buyer or seller of property should not rely on the amount shown on the property tax bill for disclosure purposes.

8. Do CFD maximum special taxes increase?

Yes, the special taxes for CFDs that are on the property tax bill have an annual escalator. CFDs 1, 2, 4, 5, 6, 8, 9 and 10 provide for an annual escalation of 2 percent. The Vila Borba CFD can increase by either the greater of the percentage increase in the Engineering News Record Common Labor Index or 4 percent.
Property owners will never be charged more than the maximum special tax even if the district’s expenses are higher than the revenue generated by assessing the maximum tax.

9. Does a CFD special tax decrease?

Property owners may be charged less than the maximum special tax or less than the prior year’s special tax depending on the revenue needs of the district.

10. When and how are the CFD special taxes collected?

Special taxes are collected by the San Bernardino County Tax Collector as part of your property tax bill. The special tax is generally itemized on your tax bill. Under certain circumstances the City can elect to bill the property owners directly. To view the payment status of the current year’s tax bill, or to make a property tax payment visit the Tax Collector’s website and enter the Assessor’s Parcel Number (Bill Number).

11. What is the amount of the CFD special tax for the current fiscal year?

Please refer to the San Bernardino County Property Tax Services website to find the amount of the CFD special tax on a particular property for the current fiscal year. You will need the property’s Assessor’s Parcel Number in order to use this site.

12. What happens if I don't pay my property tax bill on time?

CFD special taxes are subject to the same penalties and interest that apply to regular property taxes. If there are outstanding bonds and the special taxes become delinquent, the City, on behalf of the CFD, may exercise its legal right to foreclose and sell the property after providing the required notifications to the homeowner.

13. Can the CFD special tax be prepaid?

Yes. Please contact the City’s Finance Department at (909) 364-2640 for prepayment information.

14. I want to buy property in the City of Chino Hills. How much will the special taxes be?

For information about the current special taxes on a particular parcel please see the San Bernardino County Property Tax Services website. Please note that the special tax amount on the property tax bill may not be the maximum special tax for the parcel.