What is Tustin Legacy's new CFD Zone 5?

If you’re buying or own a home near Tustin Legacy’s new senior living project, the land use approval and proposed special tax zone answer different questions. The City of Tustin City Council approved the land sale and development agreement on October 6, 2026. On October 20, the city asked the council to annex the site into a services tax zone with an annual charge that rises over time and continues in perpetuity.

That proposed rate belongs to the project site. For a home you’re evaluating, check its own tax bill and district documents.

This guide is educational, not legal or tax advice.

What did Tustin approve at Disposition Area 8?

The City Council approved the land sale and development agreement for an active adult rental community with assisted living and memory care on approximately 6.14 acres.

The city-owned site occupies portions of Disposition Area 8, bounded by Warner Avenue, Armstrong Avenue, John Johnson Way and Veterans Way. It lies within Planning Areas 13 and 14 of Tustin Legacy.

The project includes 172 active adult rental units and a senior congregate care facility with 75 assisted living rooms and 28 memory care rooms. Clearwater Senior Living is the operating partner and an equity partner.

The October 6, 2026, Item 8 report gives a land purchase price of $15,054,243.00, plus a $3,029,764.58 Project Fair Share Contribution for Tustin Legacy backbone infrastructure improvements.

A share of the active adult units, as the Surplus Land Act requires, will be affordable to lower income households. The project will use a state density bonus, and its units count toward the city’s Housing Element and Regional Housing Needs Allocation goals.

When would construction start?

The developer anticipates building permits in the first quarter of 2027, while the agreement sets outside dates for escrow, construction and completion.

The Schedule of Performance lists close of escrow on December 23, 2026, grading 60 days after close of escrow, vertical construction 180 days after close of escrow, and project completion 36 months after close of escrow.

Those are the agreement’s outside dates. The anticipated permit timing comes from the October 20 staff report. Keep those descriptions attached to the dates when checking the project’s schedule.

Tustin Legacy also appears in local business coverage: the Orange County Business Journal covered a new company headquarters at Tustin Legacy. For this project’s approval, schedule and tax proposal, use the city’s documents.

What is CFD 2018-01 Zone 5?

Zone 5 is the proposed services tax zone for the Clearwater Senior Living site within Community Facilities District 2018-01.

Annexation was on the October 20, 2026 agenda as Item 12. As of October 22, 2026, the city had not posted minutes for that meeting, so check the minutes for the council’s action.

The Item 12 staff report describes these annual rates beginning in fiscal year 2026-2027:

• $1,459.30 per active adult unit, with affordable dwelling units exempted.
• $1,459.30 per assisted living or memory care room.
• $2.82 per square foot for retail or service amenities open to the public. Amenities for residents alone are excluded.

The proposed rate escalates annually using a specified Consumer Price Index, with a minimum increase of at least $2 for every $100 of the prior year’s rate. Zone 5 would exist in perpetuity to offset services and maintenance costs at Tustin Legacy.

The report says the city begins receiving services Tax B in the fiscal year following the anticipated building permits. For broader background, see the Mello-Roos guide.

Why does Tustin Legacy use special tax districts?

Tustin Legacy uses special tax districts to fund facilities and services because of the difference in basic property tax revenue the city receives there.

The staff report describes the city’s receipt as about 3 cents of each dollar of the basic property tax levy at Tustin Legacy, compared with about 11 cents citywide. It identifies six Community Facilities Districts formed to fund facilities through Tax A and services through Tax B.

For CFD 2018-01, services include police and fire, recreation programs, maintenance of parks, streets, sidewalks and drainage facilities, and other general city services associated with Tustin Legacy’s development and maintenance.

The distinction matters when you read a tax bill. Some districts listed in the report have both Tax A and Tax B. Others have Tax B alone.

Say a buyer is comparing a home in Greenwood with a home at Levity. The staff report lists Greenwood’s district with both facilities Tax A and services Tax B, while Levity’s district has services Tax B only. The buyer would review each home’s tax bill and district documents to identify its applicable charges, rate provisions and duration. The proposed Zone 5 rate for the senior living site would not establish either home’s tax amount, even though all three developments appear in the Tustin Legacy district list.

Which Tustin Legacy communities are in which district?

The staff report assigns the listed Tustin Legacy developments to six districts, with different combinations of facilities and services taxes.

• CFD 2004-01: Tustin Field I and II, Tax A and B.
• CFD 2006-01: Columbus Grove and Columbus Square, Tax A and B.
• CFD 2007-01: The District, Tax A and B.
• CFD 2013-01: The Village at Tustin Legacy, Amalfi Apartments, Anton Legacy, FLIGHT at Tustin Legacy and Legacy Magnet Academy, Tax B only.
• CFD 2014-01: Greenwood in Tustin Legacy, Tax A and B.
• CFD 2018-01: Levity at Tustin Legacy, The Landing, Irvine Company Apartments at Aviano and Terracina, Mariners Church, Clearwater Senior Living and remaining undeveloped portions of Tustin Legacy, Tax B only.

CFD 2018-01 was created in 2018 to account for known and unknown future land uses through separate zones. Levity is Zone 1, The Landing is Zone 2, and the Irvine Company Apartments are Zone 3.

Zone 4 for Mariners Church was also on the October 20 agenda, as Item 13.

What should you check for a specific home?

Check the home’s tax bill and its district documents for the applicable charges, rate provisions and duration.

The Zone 5 figures don’t provide a tax amount for Levity, The Landing, Greenwood or another for-sale community. Start with the district identified for the property, then read the documents that apply to it. For how a special tax line shows on a property tax bill in another city, see the Murrieta Mello-Roos tax bill guide. For the separate bill a buyer can get after closing, see the California supplemental property tax bill guide.

Say a buyer is considering a home at The Landing and sees the proposed Clearwater services tax. The buyer would check the home’s tax bill and CFD 2018-01 documents instead of using Zone 5’s $1,459.30 rate as the home’s charge. The staff report places The Landing in Zone 2 and the senior living site in proposed Zone 5. The buyer would keep those zones separate when reviewing the home’s taxes and the nearby project’s land use approval.

Also check documents addressing overlapping district obligations. The report says property in both CFD 2013-01 and CFD 2018-01 is released from its CFD 2013-01 obligation when its zone is annexed into CFD 2018-01. It provides for a notice of cessation for the Zone 5 site.

The short version

Tustin approved the senior living land sale and development agreement, while Zone 5’s annexation appeared on the October 20 agenda with a proposed perpetual, escalating services tax.

For your home, use its tax bill and district documents. The city’s district list explains where to start; the proposed senior project rate doesn’t establish another property’s charge.

For a home value starting point, use the home value tool.