From beautifully maintained green spaces to lively summer park concerts, Playa Vista’s lifestyle benefits are evident, especially with the premium amenities offered by The Resort and The CenterPointe Club. These perks are paid for by Playa Vista homeowners through regular HOA dues and a unique transfer fee, the Community Enhancement Fee.
In this article, we’ll break down the costs of residing in Playa Vista, the value homeowners get in exchange, and share some insights on possibly reducing your obligation to pay the Community Enhancement Fee.
What is Mello-Roos?
Beyond the standard Los Angeles County property tax (around 1.1% – 1.2%), Playa Vista residents are also subject to a Mello-Roos tax. This tax is the product of a collaboration between the city, developers, and voters (with a two-thirds majority approval). Through the Mello-Roos Act of 1982, bonds were sold to raise funds essential for the community infrastructure like sewers, parks, road improvements, utilities, fire station, etc… Rather than taxing all of the residents of Los Angeles, the Mello-Roos bond is a way for the residents of Playa Vista to cover these infrastructure costs.
Cost and Duration
The Mello-Roos bond repayment is facilitated by a special property tax. In a link below you’ll find a detailed chart for homeowners to determine their contribution based on their home’s square footage. This rate may adjust annually, changing by up to 2%.
The Playa Vista Mello-Roos bond is supposed to mature in 2031, meaning this extra tax is expected to go away at that time. This timeline was sourced from the legal agency handling the Mello-Roos bond.
View the recent Mello-Roos chart: Playa Vista Mello-Roos 2023-2024
For those eyeing properties in Playa Vista Phase II, good news, there’s no Mello-Roos tax! The infrastructure expenses for this segment of Playa Vista were settled by the property developers, which means it is factored into the price of these homes.
Who Pays and What Does It Cover?
Whenever a Playa Vista property sells, 0.75% of the sale price is directed to Playa Vista Community Services (PVCS). This fund is reserved for the beautification of Playa Vista and community-centric initiatives like park concerts, movie nights, and seasonal gatherings. A portion of this fund is also allocated for the preservation of the Ballona Wetlands.
Who Pays and How Can You Save?
The Playa Vista Community Enhancement fee burden might fall on the seller, buyer, or both, depending largely on the current market dynamics. The Community Enhancement Fee is a closing cost that is paid in cash, meaning it cannot be directly financed (more on this shortly). In a strong seller’s market, with a lot of buyers competing for a home, we find that prospective buyers are including paying this fee as a part of their offers to stand out and hopefully get an accepted offer. In a balanced market, or when there is less competition, the fee is sometimes split 50/50 by the buyer and seller or paid completely by the seller.
There is an option for a buyer to indirectly finance the Community Enhancement Fee by increasing their purchase price by the amount of the fee but have the seller pay it out of their proceeds. In this scenario there is no change to the sellers bottom line and the buyer is able to reduce their closing costs. The negatives for the buyer are paying interest on the amount of the fee plus the assessed tax value increases slightly.
For example, on a $1,000,000 condo the Community enhancement fee will be $7500. If the buyer increases their offer to cover the fee and the seller pays it then the total price would be $1,007,500. In this scenario, the annual taxes would be $90 higher per year and the monthly mortgage payment would increase by about $40 to $50, for a total of approximately $600 more per year to structure it this way.
This HOA, frequently dubbed the master HOA, is paid monthly. Currently it is $285 per unit and homeowners of both Playa Vista Phase I and II pay this HOA.
Included in the PVPAL HOA:
- Basic cable package
- Fast internet services
- Alarm monitoring
- Fitness center access at both The CenterPointe Club and The Resort
- Swimming pool access at the two aforementioned locations
- Maintenance of community parks, playgrounds, and courts
- 24/7 community security surveillance
Playa Vista’s Shuttle Services
PVPAL, The Campus, and LA County respectively fund the beach and campus shuttle services.
HOA Fees for Condos Buildings and Single Family Home Communities
Every building has its unique HOA fees, ranging from $250 to $950 monthly in Phase I and $75 to $1000 in Phase II. These costs are typically shaped by the amenities each building offers and the unit count. Higher priced HOAs often feature a higher ratio of elevators to units, fewer units, gym on-site or a pool/spa.
Standard services covered include:
- Building-specific landscaping
- Waste and recycling collection (might be excluded for standalone homes)
- Water is covered in most Phase I Condo Buildings. Homeowners of single family homes in all of playa vista and the condo buildings in Phase II pay for their own water individually.
- Common area maintenance reserves
- Management service charges
- Insurance for shared spaces against fire and other liabilities
- Expenditures linked with gated security, elevators, illumination, and safety systems