CITY OF MENIFEE
SUBJECT: Proposed Change to Community Facilities District No. 2025-4, Heritage Village, by Lennar Homes
MEETING DATE: January 13, 2026
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Review the changes proposed for Community Facilities District No. 2025-4, Heritage Village, to amend the financing plan for certain public improvements within the proposed 162-unit townhome development and recommend submittal to the City Council for consideration.
DISCUSSION
Lennar Homes has approved plans for Heritage Village, a project that includes 162 townhomes on 7.52 acres located west of Menifee Road and north of Rouse Road within the City. On April 2, 2025, the City Council approved Resolution 25-1559 establishing Community Facilities District 2025-4, Heritage Village, (“CFD 2025-4” or “the CFD”) and in May 2025 the City Council approved Ordinance 2025-410 authorizing the levy of special taxes within CFD 2025-4.
Lennar is now requesting that the City revise the financing plan to incorporate Romoland School District fees into the list of approved facilities to be financed with bond proceeds.
When the district was formed last year, it did not appear that there would be enough bond proceeds to cover the cost of school district fees. Since then, however, it was discovered that the cost estimates used to determine the bonding capacity were inaccurate. The fee estimates for both the City and Eastern Municipal Water District (“EMWD”) were based on costs for single- family homes rather than the multifamily homes planned for this project. The multifamily home rates for both agencies are lower than those for single-family homes. This reduction in City and EMWD fees means that bond proceeds could be used to finance a significant portion of school fees.
There are no proposed changes to the size and mix of homes, nor the assigned special taxes.
City of Menifee Staff Report
Proposed Change to Community Facilities District No. 2025-4, Heritage Village, by Lennar Homes
January 13, 2026
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The effective tax rate would be reduced slightly, only as a factor of anticipated home sale prices increasing since the district was formed last year.
If the requested change is approved, a Joint Community Facilities Agreement with Romoland School District would be brought back to City Council for review.
ATTACHMENTS
1. CFD 2025-4 Proforma Summary
2. CFD 2025-4 Project Map
3. CFD 2025-4 Change Proceeding Proforma
4. CFD 2017-1 Annex 29 Boundary Map
5. CFD 2025-4 Boundary Map
6. CFD 2025-4 Report
7. CFD 2025-4 Change Proceeding Request