Fusion South Bay real estate and townhomes for sale

Fusion South Bay Real Estate and Homes for Sale

What is a Mello-Roos and How Much is it in Fusion South Bay?

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When home buyers go into escrow in Fusion at some point they’ll find out that there is a mello roos in the community.  In general it means that there is a yearly addition to the normal property taxes.

What is Mello-Roos?

Background
In 1978 Californians enacted Proposition 13, which limited the ability of local public agencies to increase property taxes based on a property’s assessed value. In 1982, the Mello-Roos Community Facilities Act of 1982 (Government Code §53311-53368.3) was created to provide
an alternate method of financing needed improvements and services.

The Mello-Roos Community Facilities Act of 1982
The Act allows any county, city, special district, school district or joint powers authority to establish a Mello-Roos Community Facilities District (a “CFD”) which allows for financing of public improvements and services. The services and improvements that Mello-Roos CFDs
can finance include streets, sewer systems and other basic infrastructure, police protection, fire protection, ambulance services, schools, parks, libraries, museums and other cultural facilities. By law, the CFD is also entitled to recover expenses needed to form the CFD and
administer the annual special taxes and bonded debt.

What is a Mello-Roos?
A CFD is created to finance public improvements and services when no other source of money is available. CFDs are normally formed in undeveloped areas and are used to build roads and install water and sewer systems so that new homes or commercial space can be built. CFDs are also used in older areas to finance new schools or other additions to the community.  This is why we see a mello-roos in Fusion as it went to pay for the infrastructure for the community as it didn’t exist prior.

What is the Mello-Roos in Fusion?

While the amount of the mello-roos can vary and can change the mello-roos for owners in Fusion is currently (and approximately)  The table below is from a 2018 escrow with specific information at that time.  While we cannot guarantee the information below the contact number listed is 714-541-4585 for updated information.

 

How is a Mello-Roos CFD Formed?
A CFD is created by a sponsoring local government agency. The proposed district will include all properties that will benefit from the improvements to be constructed or the services to be provided.  A CFD cannot be formed without a two-thirds majority vote of residents living within the proposed boundaries. Or, if there are fewer than 12 residents, the vote is instead conducted of current landowners. In many cases, that may be a developer.

Once approved, a Special Tax Lien is placed against each property in the CFD. Property owners then pay a Special Tax each year. If the project cost is high, municipal bonds will be sold by the CFD to provide the large amount of money initially needed to build the
improvements or fund the services.

How is the Annual Charge Determined?
By law (Prop. 13), the Special Tax cannot be directly based on the value of the property. Special Taxes instead are based on mathematical formulas that take into account property characteristics such as use of the property, square footage of the structure and lot size. The
formula is defined at the time of formation, and will include a maximum special tax amount and a percentage maximum annual increase.

How Long Will the Charge Continue?
If bonds were issued by the CFD, special taxes will be charged annually until the bonds are paid off in full. Often, after bonds are paid off, a CFD will continue to charge a reduced fee to maintain the improvements.  According to the information from the table above the Mello-Roos will end in 2041.

IMPORTANT TO KNOW:
• Rights to Accelerated Foreclosure. It is important for CFD property owners to pay their tax bill on time. The CFD has the right (and if bonds are issued, the obligation) to foreclose on property when special taxes are delinquent for more than 90 days. Additionally, any costs of collection and penalties must be paid by the delinquent property owner. This is considerably faster than the standard 5 year waiting period on county ad valorem taxes.
• Disclosure Requirement for Sellers (California Civil Code §1102.6). When reselling a property in a CFD, the seller must make a “good faith effort” to obtain a Notice of Special Tax from the local agency that levies the Special Tax, and provide it to the buyer.

E Floorplan in the 5403 Building Now In Escrow and Pending

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What’s good news for owners and sellers in Fusion is the recent accepted offer on 5403 #4.  It had been on the market for over 80 days which is unusual for a such a high demand community but showing the home was difficult and made it a bit tougher to sell.  See why you want to make it easy to show your home in Fusion.  It’s great news that it offically went into escrow on 4/5… we’ll keep our eye out on this one with updated price information once it closes escrow.

*Square footage numbers vary as tax records and builder records show a different amount of square feet.  Information deemed reliable but not guaranteed and buyers advised to confirm all details.

The Easier Realtors Can Show Your Home….the More Likely It Will Sell Quickly

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Hiring the right realtor can obviously make a huge difference in the home selling process.  From marketing expertise, to advise on pricing and home prep a goodFusion J unit kitchens realtor is there to help at ever step of the way.

Beyond hiring the right realtor, sellers have a lot that they can do that will make a big difference, whether getting a higher price, or even the difference between selling or not.

One of the decisions a seller controls is just how easy it is for buyers and agents to see the house.  Simply put, the easier it is for people to see, the more likely the interest level is higher.  We’ve seen a few homes in Fusion lately that may have sold sooner and possibly at a higher number if there was easier access to the home.   I often joke with my clients that the ideal for a realtor is “a vacant house that is staged”.  That is rarely the reality however.  As every situation is different it’s sometimes not all that easy….whether it’s tenant occupied, sellers that work from a home office, or simply not wanting to have your life upended.

We stress to our clients that the key is to make the home accessible in certain ways even when total access isn’t.  It’s fine to limit showings to certain days or hours…but make it very easy to see other times.  If the showings need to be restricted during the week (whether because of sleeping kids, home office or just not wanting dinner to be disturbed) consider having open house so that interested parties have an alternative.  If you limit showing ability too much potential buyers will simply lose interest.

Although not all of these may be possible, there are a few things that sellers may want to consider:

  • If the property is tenant occupied (and the tanants are not eager for the home to sell) consider waiting until the lease is up and selling the home after the tenants move out.
  • Consider offering a rent reduction for the tenants while the home is on the market in exchange for the tenants willingly accomodating showings and open houses.
  • If there are challenges allowing showings during the week, have open houses on the weekend so that your realtor can offer potential buyers options and alternatives….look like you’re accomodating.
  • One nice aspect to open house that you can not only get a lot of the buyers through that might want to arrange a showing, but also get many of the less serious crowd through without much effort.
  • Instead of repeatedly saying no to showing requests, make it clear when the home “can” be shown.  Your realtor can put showing instructions on the MLS that specifies all of the times that the home can be shown.

Find out what your home in Fusion South Bay is worth.

 

First Quarter Recap – Home Sales in Fusion Through March

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It’s been a slow year so far in Fusion with only 4 properties on the market in 2019 thus far.  Currently there is only one active listing at 5403 149th Pl #4 which hasBeautiful A unit interior spaces in Fusion been on the market since mid January.  It’s a beautiful home but a challenge to get in for a tour which is partially responsible for the long time on the market.

Currently one home is in escrow at 5406 #18 which is a 2 bedroom C floorplan that had been on the market for a while.

The only other activity for the year were two sales that have thus far closed in 2019.  Both were 3 bedroom J units which are normally very rare but seemed to be a wave of them in 2018 early 2019.  The home at 5512 W 149th Place Unit #11 sold off market in January (and was quickly rented out) but had been on the market in and out of escrow in 2018. The home at 5402 W 149th Place Unit#12 sold after one week. It was listed at $829,000 and sold at $820,000. It was a nicely upgraded unit but location was a bit of a challenge with views of the electrical substation.

5406 W 149th Place #18 – C Floorplan for Sale in Fusion for $735

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**udate – as of 3/5/19 this home is now in escrow**
We’ve written quite a bit about the C floorplan currently for sale in the 5406 #18 as it’s surprising to see it still on the market.  The
C floorplan is fairly rare and the appeal generally lies in the fact that it’s significantly bigger than the smallest A and B units (around 1,000 square feet), and it offers a 2 car attached garage (A and B units have a 1 car detached garage)  My clients feedback indicates that the floorplan isn’t one of the preferred but again given the size difference between this and the smaller units it’s surprising to see it still on the market.  It certainly appears to be an indication of a slowing market in a community that was white hot in 2018.

5406 W 149th Place #18

*Square footage numbers vary as tax records and builder records show a different amount of square feet.  Information deemed reliable but not guaranteed and buyers advised to confirm all details.

What’s Nearby Fusion South Bay – Downtown Manhattan Beach

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There are endless reasons that make Manhattan Beach such a unique and special town.  Certainly one of them is the small town charm. As with any good town, the heart of the city is located in the downtown shopping and dining area.  What makes downtown Manhattan even more spectacular is that it sits just steps from one of the nicest beaches in the world.  With a variety of restaurants offering both casual and fine dining, sports bars, the hip Shade hotel and shops for just about everyone, downtown Manhattan Beach really epitomizes the casual yet elegant feel of the city itself.  In addition to the abundance of activities in the center of the city, just a short walk down the street leads you to the sand of world famous Manhattan Beach as well as the Manhattan Beach pier.  Roundhouse Aquarium, and the bike and walk paths of The Strand, Manhattan Beach’s oceanfront walk are all right there.

Map of downtown Manhattan Beach.

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