County staff outline fee-deferral program and statewide SCIP option to aid development financing

Deputy County Administrative Officer Ben Rickelman told the Board of Supervisors his office is exploring two related tools to reduce upfront development costs: a county-run fee-deferral program for selected projects and participation in the California Statewide Community Development Authority’s Statewide Community Infrastructure Program (SCIP), a joint-powers authority-managed financing option.

Rickelman said an initial county program would likely be limited to commercial and multifamily projects to protect the county’s revolving fund and would require completed entitlements before an applicant could defer county fees. Deferrals would typically remain in effect until a certificate of occupancy or five years, whichever comes first, and staff proposed charging interest on deferred amounts so the revolving fund retains purchasing power. “When they apply for a building permit,” Rickelman said, “there would be interest charged on the deferral.” He emphasized this program would apply only to county fees; school-district fees and other independent districts are outside the county’s direct authority.

Rickelman described SCIP, administered by the California Statewide Community Development Authority (CSCDA). James Hamill, a SCIP managing director who joined on Zoom, said SCIP underwrites and issues tax-exempt assessment bonds for public improvements tied to developments, generally for projects in the $500,000 to $35 million range; residential projects typically start at about 100 units for standalone financing. “There’s no liability to the county for the bonds that are issued under this program,” Hamill said, adding that SCIP provides an alternative financing tool and that participating agencies retain control over which projects access the program.

Supervisors asked staff to study whether fee deferrals could cover subdivisions and how special-district fees (water, sewer, fire mitigation) might be incorporated. Supervisor Sabatier asked whether larger subdivisions could be covered as a single agreement rather than dozens of separate deferrals; Rickelman said he would investigate legal and administrative options. Several supervisors urged careful coordination with fire districts and other special districts; one supervisor suggested schools might be politically sensitive to include in deferrals, and staff said they would research legal constraints.

No formal board action was taken; Rickelman said staff will return with a more detailed proposal, draft ordinance and program guidelines for the Board to consider.

Ending: Staff noted the county is a member of CSCDA but not currently a SCIP participant; a future resolution would be required to join SCIP if the board chooses to proceed.