Under California's Mello-Roos Community Facilities Act, special taxes levied within a CFD may fund all of the following EXCEPT:
Correct Answer
D) Retroactive reimbursement to a developer for land already dedicated to the city prior to CFD formation
Under Government Code §53313, Mello-Roos CFDs may fund public facilities and services that benefit the district. Retroactive reimbursement to a developer for land already dedicated to a public agency prior to CFD formation is not an authorized use of special tax proceeds — CFD funds must be applied to prospective public improvements and services, not to settle pre-existing private obligations.
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