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Capital Facilities Fees (“CFF”) are impact fees established to mitigate the
impacts of new development as outlined in
§66000 of the California
Government Code. These fees may be used for the purchase, construction,
expansion, rehabilitation, or acquisition of public facilities.
- CFF are inflated annually effective July 1st.
- CFF programs are updated every five years
- CFF are due and payable at the time of building permit
issuance.
- CFF Exemption and Deferrals are available for qualified
projects.
- Projects that are assessed for CFF include:
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New building/construction projects
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Nonresidential building additions
Capital Facilities Fee Deferral & Exemption Programs
The City of Modesto (City) supports economic development through the growth
of Modesto businesses. It also encourages the construction of residential
and affordable housing development projects within the City. However, due
to the continued rise in development costs and today’s weak economy, many
development projects are stalled or abandoned. Since the early 1990’s, the
City has offered several Capital Facilities Fees (CFF) deferral and
exemption programs to encourage economic development, as well as affordable
housing developments. By implementing CFF deferral and exemption programs,
the City seeks to ease this cost barrier by deferring the time for payment
of certain development impact fees.
New development increases the demand for health and safety services provided
by the City, affect the quality of the community’s infrastructure, and increases
the need for public facilities. Typically, CFF is paid to the City at the time
a building permit is issued and helps pay for the cumulative impact of new
development through infrastructure improvements and additions, thereby also
contributing to the community’s economic development. Facilities partly funded
by CFF include park, police, fire and administrative buildings, bike trails,
public landscape areas, community centers, transportation and transit facilities,
as well as roadway improvements. CFF does not fund maintenance of existing or
future city facilities.
CFF deferral and exemption programs benefit economic growth and development by
allowing the deferral and/or waiver of impact fees. In most cases, the deferral
programs allow developers and single-family affordable homeowners to pay a small
portion of CFF at building permit issuance, and defer or delay paying the
remainder of the fees until a later date (deferral period varies). CFF deferrals
and exemptions are administered by the Infrastructure Finance Program office
located in the City’s Community & Economic Development Department. To defer or
waive CFF, homeowners and/or developers are required to complete an application
and enter into an agreement with the City. Upon approval by the City Council,
the agreement is recorded and a lien is placed on the property until the terms
of the agreement are met. Below is a summary of the City’s current CFF deferral
and exemption programs.
CFF Policies and Procedures
CFF Fee
& Schedules
CFF Documentation
for Justification for Impact Fee
Mitigation
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