County Approves Financing Tools for Roads, Sewer, and Development Infrastructure
Homeowners can form special assessment districts
The Mendocino County Board of Supervisors voted unanimously Wednesday to join a statewide financing program aimed at helping developers and property owners pay for public infrastructure and development impact fees through tax-exempt bonds.
By opting into the Statewide Community Infrastructure Program, the county authorizes the California Statewide Communities Development Authority to accept applications from local property owners to form special assessment districts. The program, created in 2002, allows financing for public improvements such as roads and sewer systems, as well as county-imposed development impact fees.
Planning and Building Services Director Julia Krog told the board the resolution was required for the county to “opt into that type of financing option” for local property owners.
Under the program, CSCDA issues tax-exempt bonds to cover eligible costs. Property owners who participate repay the debt through special assessments or taxes levied on their parcels..
Developer Doug Guillon, who is developing the Bella Vista subdivision project just south of Ukiah, told supervisors the program could reduce borrowing costs by securing interest rates of about 4.5 percent, compared with roughly 6 percent for conventional financing.
“It’s a great financing tool to help keep the cost of home ownership down,” Guillon said, noting the program could help finance a planned $1.5 million roundabout for the project.
Krog said the program presents minimal financial risk to the county. Impact fees can be paid upfront and reimbursed through bond proceeds or funded directly through the bonds, with the county able to request funds for approved expenses. Any infrastructure financed through the program must be publicly owned upon completion and built using prevailing wages.
The vote followed a preliminary discussion at the board’s March 10 meeting. Supervisor Ted Williams made the motion to join the program, seconded by Supervisor Maureen Mulheren. The board approved the measure on a 5-0 vote.
While the county has authorized participation, individual developers must still apply to the CSCDA for project-specific financing.