But what local governments tend to do is declare a redevelopment zone to susidize typically housing development The new property taxes go to subsidize fund the development through the local redevelopment agency and the local governments have to slap a Mello Roos tax on the property to keep up funding for police fire schools etc to maintain fiscal neutrality This mello roos is on top of property taxes and makes the housing even more expensive I d really like to see a good strong source for what you ve heard