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Board approves five CFD annexations after debate and schedules workshop on CFD fees and HOA policy
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Summary
The San Benito County Board of Supervisors approved five annexations into Community Facilities District (CFD) 2018 on April 14, including a 3–2 approval of the Fairview Corners annexation, and directed staff to schedule a special workshop to review CFD fees and consider HOA alternatives.
The San Benito County Board of Supervisors on April 14 approved five annexations into CFD 2018 and directed staff to convene a special workshop to review CFD fee schedules and alternatives, including requiring homeowners associations for future projects.
Concerns about the county’s current use of CFDs centered on whether the tax mechanism was being used to bill the public for services developers historically should provide. A supervisor who said they had “been raising the alarm bell” on a recent flood of CFD applications urged the board to accelerate a fee study and consider shifting non-core services — landscaping and similar maintenance — to homeowner associations rather than the county.
County staff described the annexations: Annexation No. 22 (Tax Zone 25) is a 28.57-acre parcel at 1401 Orchard Road to be subdivided into three parcels (including 5 two-and-a-half–acre lots and an 18.41-acre parcel) and was annexed only for negative fiscal impact fees at a rate of $943.35; Annexation No. 23 (Tax Zone 26, O’Donnell Family Ranch) covers roughly 115.87 acres and likewise is annexing for the negative fiscal impact fee of $943.35 with no development proposed at this time; Annexation No. 24 (Fairview Corners, phase 1) covers 74 single-family residential parcels of a larger project and includes parcel-specific CFD maintenance charges (example rates discussed included $1,838.26 per unit for maintenance services in phase 1); Annexation No. 25 (Fulton Mojave Development, tax zone 1) is a 4.01-acre lot subdividing into 10 residential lots and will join an existing Sunny Slope Estates–style rate ($1,838.26); Annexation No. 26 (Brigantino family, Tax Zone 27) is a large parcel subdividing into two parcels and was also limited to the negative fiscal impact fee rate of $943.35.
The board approved Annexations 22 and 23 by unanimous 5–0 votes. The Fairview Corners annexation (No. 24) prompted the most debate: board members discussed developer advertising that the project would have “no HOA,” counsel explained the board could not retroactively force an HOA once development and disclosures are in place, and supervisors pressed for clearer disclosure to buyers. The Fairview Corners motion passed 3–2 (two supervisors voted no). Annexations 25 and 26 passed 5–0.
After the votes, the board instructed staff to schedule a special workshop in May to review CFD fee updates, fee schedules across departments, and the HOA-versus-CFD policy options. County staff and the CEO said departments will prepare comparative fee analyses and that a consultant may be needed to complete a thorough fee study.
Supervisor comments emphasized two goals: make sure CFDs are used only for core public services (public safety, essential infrastructure) and ensure full public disclosure when developers market properties as having “no HOA.” The board also asked staff to include the CFD/HOA discussion on an ad hoc housing or budget-fees workshop and to notify the public when workshops are scheduled.
The county clerk recorded motions and roll-call votes during the hearing. The public hearing for the five annexations was opened and closed the same day; no supplemental public comment opposed the annexations during their roll-call votes.
