Deferral Programs

Deferrals at a Glance

Development and Expansion of Businesses and Commerce

Program: This deferral program is designed to encourage the development and expansion of businesses and commerce within the City of Modesto by deferring payment of Capital Facilities, Water Connection and/or Wastewater Capacity Fees for a period of five years.

Qualifications: Any non-residential project in the City of Modesto or within the City of Modesto's sphere of influence.

Conditions: 20% of the Capital Facilities, Water Connection and/or Wastewater Capacity Fees are to be paid at the time a permit is issued.  The remaining 80% of the Capital Facilities, Water Connection and/or Wastewater Capacity Fees, plus interest, shall be paid in equal installments over five (5) years.  An agreement and notice of lien are to be executed by the owner of the property.  The lien will remain in effect until the deferred fees have been paid in full.  (Full terms and conditions of the deferral are set forth in the standard agreement.)

Fees and Process: Submission of a completed application, an administrative processing fee ($250.00) and a Title Report fee ($500.00) will commence the deferral application process.  Upon receipt of the appropriate title documentation, an agreement will be drafted and provided to the applicant.  This agreement requires administrative approval.  Completion of the process typically takes 2-3 weeks.


Existing Single-Family Residential Units (not connected to Wastewater)

Program:  This deferral program is designed to assist homeowners that are not connected to the City of Modesto's wastewater system.

Qualifications: Any existing single-family home in the City of Modesto or within the City of Modesto's sphere of influence desiring to connect to the City of Modesto's wastewater system.

Conditions: 10% of the Wastewater Capacity Fee is to be paid at the time a permit is issued.  The remaining 90% of the Wastewater Capacity Fee, plus interest, shall be paid in equal installments over ten (10) years.  An agreement and notice of lien are to be executed by the owner of the property.  The lien will remain in effect until the deferred fees have been paid in full.  (Full terms and conditions of the deferral are set forth in the standard agreement.)

Fees and Process: Submission of a completed application, an administrative processing fee ($250.00) and a Title Report fee ($75.00) will commence the deferral application process.  Upon receipt of the appropriate title documentation, an agreement will be drafted and provided to the applicant.  This agreement requires administrative approval.  Completion of the process typically takes 2-3 weeks.


Existing Single-Family Residential Units (Past Paid Unconnected Sewer)

Program:  This deferral program is designed to assist homeowners that paid sewer charges in the past but were not connected to the City of Modesto's wastewater system.

Qualifications:  Only residential properties that have been identified on the List of Unconnected Properties are eligible for this program.

Conditions:  A credit of $2,915 will be applied to the total Wastewater Capacity Fees due.  100% of the remaining Wastewater Capacity Fee, plus interest, shall be paid in equal installments over ten (10) years.  An agreement and notice of lien are to be executed by the owner of the property.  The lien will remain in effect until the deferred fees have been paid in full.  (Full terms and conditions of the deferral are set forth in the standard agreement.)

Fees and Process: Submission of a completed application will commence the deferral application process.  An administrative processing fee ($250.00) and Title Report fee ($75.00) are rolled into the total deferral amount.  Upon receipt of the appropriate title documentation, an agreement will be drafted and provided to the applicant.  This agreement requires administrative approval.  Completion of the process typically takes 2-3 weeks.


Construction of New Single-Family Affordable Housing Units

Program:  This deferral program is designed to encourage the development of affordable housing projects.  This program allows for the deferral of Capital Facilities Fees for eligible low and very low income housing projects constructed in the City of Modesto or within the City of Modesto's sphere of influence.

Qualifications:  Any single-family affordable housing unit constructed by any person or entity.  The home must be purchased by a homebuyer earning between 61-80% of the area median income who will use it as their principal place of residence.

Conditions:  All or a portion of the Capital Facilities Fees can be deferred up to five (5) years.  Starting in the sixth year, the homeowner begins making payments of principal and interest and continues to pay annually over a ten (10) year period.  An agreement and notice of lien are to be executed by the owner of the property.  (Full terms and conditions of the deferral are set forth in the standard agreement.)

Fees and Process: Submission of a completed application, an administrative processing fee ($250.00) and a Title Report fee ($500.00) will commence the deferral application process.  Upon receipt of the appropriate title documentation, an agreement will be drafted and provided to the applicant.  This agreement requires approval from the Citizens Housing & Community Development Committee.  Completion of the process typically takes 6-8 weeks.



For more information regarding Deferral Programs, please contact the Infrastructure Finance Program office at (209) 577-5211 or visit our website at www.modestogov.com/ced/about/ifp/.