Title:
Title
Update of the Fee Deferral Ordinance
End
FileID
File ID: 2018-01604
Location
Location: Citywide
Recommendation:
Recommendation
1) Review an ordinance amending sections 18.52.010 and 18.52.040 of the Sacramento City Code, relating to deferring payment of city fees on projects; and 2) pass a Motion to forward the Ordinance to City Council for consideration.
Contact: Greg Sandlund, Principal Planner (916) 808-8931, Community Development Department
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Ordinance - Redline
3-Ordinance - Clean
Description/Analysis
Issue Detail: On February 14, 2017, Council Adopted the Fee Deferral Ordinance (Chapter 18.52 of City Code) to provide an option to delay the cost of development impact fees until final inspection of the building or facility. The Fee Deferral Ordinance included a February 1, 2019 expiration date. Staff is proposing to extend the Fee Deferral Ordinance for an additional two years and is also expanding the scope of the program to apply to commercial projects with a project valuation of $1 million or more. The current ordinance restricts the fee deferral program to commercial projects of 100,000 square feet or more.
Since the end of the recession, an inadequate housing inventory statewide has increased housing prices and rents. High construction costs have delayed new construction and kept the housing inventory low. Developers typically finance these fees prior to the construction period, often at high interest rates. These expenditures increase overall development costs. Providing the option to delay the cost of impact fees until the final inspection of the building or facility (and any resulting impacts) would reduce the upfront construction costs.
Policy Considerations: The Fee Deferral Ordinance is supported by the following policy as established in the 2035 General Plan:
Housing 2.2.3 Offsetting Development Costs for Affordable Housing. The City shall defer f...
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