Development Fee Deferrals

The San Diego City Council approved Ordinance O-19893 (PDF: 144K) that allows for the deferral of Facilities Benefit Assessments (FBA) and Development Impact Fees (DIF). A Fee Deferral Agreement must be processed by the applicant, properly executed, duly recorded, and the applicable administration fee paid to defer the collection of FBA or DIF. The FBA or DIF can be deferred for a maximum period of two years, or until request for Final Inspection, whichever is shorter. The Final Inspection shall not be scheduled until the applicable FBA or DIF are paid.

• Scope
  Developers of eligible projects must sign an agreement with the City to pay the fees prior to Final Inspection. An administrative fee of $500, to cover the costs of processing and recording the agreement with the Office of the San Diego County Recorder, will be charged. Any deferred fees must be paid before a Final Inspection can be scheduled by Development Services. The property cannot be occupied until it receives an approved Final Inspection and a Certificate of Occupancy.
  
  
• Affordable Housing Units
  Affordable housing units can have FBA and DIF deferred indefinitely. Affordable housing units mean all units that meet the affordability requirements of the Inclusionary Ordinance codified in San Diego Municipal Code Section 142.1309.
  
  
• Regional Transportation Congestion Improvement Program
  Regional Transportation Congestion Improvement Program (RTCIP) fees are not eligible for fee deferral.
  
  
• FBA Program
  The FBA fee deferral program will be in effect for two years from the date of ordinance approval (termination date 12/31/2014). FBA fees, including all annual inflationary rate increases, due shall be as set forth in the fee schedule in effect when the Fee Deferral Agreement is executed by the City, or the fees approved by the City Council for a subsequent update of the public facilities financing plan, whichever fee is lower. To apply for deferral of FBA fees, contact the Facilities Finacing Program at (619) 533-3670 to determine eligibility. Once eligibility is determined, you will need to complete the FBA Fee Deferral Agreement (PDF: 93K). Note: To be accepted by the Office of the San Diego County Recorder, this document along with Notary signature page (provided by Notary) must be legibly printed and all signatures made in blue ink.
  
  
• DIF Program
  The DIF fee deferral program will continue indefinitely. DIF fees due shall be the amount in effect when the Fee Deferral Agreement is executed by the City, plus an automatic increase effective July 1st of each year based on the one-year change (from March to March) in the Los Angeles Construction Cost Index as published monthly in the Engineering News Record. To apply for deferral of DIF fees, contact the Facilities Finacing Program at (619) 533-3670 to determine eligibility. Once eligibility is determined, you will need to complete the DIF Fee Deferral Agreement (PDF: 73K). Note: To be accepted by the Office of the San Diego County Recorder, this document along with Notary signature page (provided by Notary) must be legibly printed and all signatures made in blue ink.
  
  
• Paying The Deferred Facilities Benefit Assessments and Development Impact Fees
  Before the project can receive Final Inspection, the fees must be paid with a certified/cashier's check. They can be paid by mail, or at the City of San Diego CPCI-Facilities Financing Program, 1010 Second Avenue, MS 606F, Suite 600-East Tower, San Diego, CA, 92101.
  
  
• Water and Sewer Capacity Charges
  For Water and Sewer Capacity charges, contact Public Utilities at (858) 614-5764.
  
  

Helpful Links

• Contact your Facilities Financing Project Manager