Deferrals for Residential Developments
- Single-Family Affordable Housing CFF Deferral
The Affordable Housing Fee Deferral
Program is designed to encourage development of affordable
housing projects. This program allows for the deferral of
CFF for eligible low and very low income housing projects
constructed in the City and the City’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 the
development as their principal place of residence.
Conditions: All or a portion of
the CFF 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. This deferral requires an application,
signed Agreement approved by the City Council, Promissory
Note and City Deed of Trust to secure the note and places a
lien on the property. Interest penalties apply if deferred
fees are not paid within the maximum fee deferral period.
- Single-Family Residential Deferral Until Final Occupancy
The Single-Family Residential Deferral
until Final Occupancy is designed to encourage development of
single-family residential homes by deferring payment of the
CFF until a Certificate of Occupancy is issued by the Building
Safety Division.
Qualifications: Any single-family
home constructed by any person or entity.
Conditions: CFF is deferred until a
Certificate of Occupancy is issued by the Building Safety
Division or 18 months from execution of the agreement, whichever
is less. This deferral requires an application, $250 processing
fee, $29 recordation fee, preliminary title
report, signed Agreement, and places a lien on the property.
Interest penalties apply if deferred fees are not paid within
the maximum fee deferral period.
Deferrals for Non-Residential Developments
Rather than paying CFF at the time a building permit is issued, a
property owner or developer may elect to defer payment of all or a
portion of those fees if the development falls into one of two categories.
- Category A - Non-Residential CFF Deferral
Qualifications: Any non-residential
project, excluding industrial warehouses, where the CFF exceeds
$150,000, and where there is a single owner. This may be one
parcel or a group of contiguous parcels. For industrial
warehouses, the conditions are the same except the CFF must
exceed $50,000.
Conditions: 10% of CFF is paid when a
building permit is issued. The remaining 90%, plus interest, is
paid in equal installments over ten (10) years. This deferral
requires an application, preliminary title report, signed Agreement
approved by the City Council, and places a lien on the property.
Interest penalties apply if deferred fees are not paid within the
maximum fee deferral period.
- Category B - Non-Residential CFF Deferral
Qualifications: Projects, excluding
industrial warehouses, where the CFF is between $25,000 to
$150,000, and where there is a single owner. This may be one
parcel or a group of contiguous parcels. For industrial
warehouses, the conditions are the same except the CFF must be
between $25,000 to $50,000.
Conditions: 20% of CFF is paid when a
building permit is issued with the remaining 80% paid in equal
installments over five (5) years, plus interest. This deferral
requires an application, preliminary title report, signed Agreement
approved by the City Council, and places a lien on the property.
Interest penalties apply if deferred fees are not paid within the
maximum fee deferral period.
For more information regarding CFF Deferral & Exemption Programs,
please contact the Infrastructure Finance Program office @ (209) 577-5211
or visit our website at www.modestogov.com.
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