New Single-Family Affordable Housing Units


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.


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.


All or a portion of the Capital Facilities Fees can be deferred up to 5 years. Starting in the sixth year, the homeowner begins making payments of principal and interest and continues to pay annually over a 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 & Process

Submission of a completed application, an administrative processing fee ($250) and a Title Report fee ($500) 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 and Community Development Committee. Completion of the process typically takes 6-8 weeks.