Facilities Financing Frequently Asked Questions
What is a Public Facilities Financing Plan (PFFP)?
In each community, there are identified public facilities which serve the community and which are required in order to comply with the General and Community Plan. The Public Facilities Financing Plan (PFFP) implements these plans. It is a City Council approved document and includes the following: the community's boundary and area of benefit for which development fees are collected: an estimate of the community's development schedule (Facility Benefit Assessment only); projected community build out; a description of community facilities with funding sources and assessment on residential, commercial or industrial development (Facility Benefit Assessment only).
Does new development always cause new facilities?
The need for public facilities is related to a community's growth and is reflected in the community plan. Transportation improvements, park and recreation improvements, police, fire, library and other facilities (water, sewer, drainage, etc.) may be required, or need to be expanded, as a community reaches identified thresholds for each type of facility and to maintain existing levels of service.
Does the City pay for facilities or does the developer?
At the time of building permit issuance, the property being developed is assessed an Facility Benefit Assessment (FBA) or Development Impact Fee (DIF) amount determined by the type and size of the development for the permit being issued. Monies collected are placed in a City revenue account, used solely for those major public facilities shown in the financing plan for the area of benefit. This is done to assure that new development does pay for facilities proportional to the new development.
What is a Facilities Benefit Assessment (FBA)?
A Facilities Benefit Assessment (FBA) generally provides 100% of funds for public facilities projects that service a designated area of benefit and are identified in the Public Facilities Financing Plan (PFFP). The dollar amount of the assessment is based upon the cost of each public facility equitably distributed over a designated area of benefit in the community planning area. Liens are recorded with the County Assessor's Office.
What is a Development Impact Fee (DIF)?
Within urbanized communities which are near buildout, Development Impact Fees (DIF) are collected to mitigate the impact of new development through provision of a portion of the financing needed for identified public facilities and to maintain existing levels of service for that community. Upon determination of the area of benefit and community buildout population, the estimated cost to construct the facilities is divided among residential and nonresidential development. The cost of each development is dependent on the type and size of that development. New development can only be charged a fee proportional to the impact it causes.
Can I defer payment of impact fees?
At this time, the City of San Diego only allows for the deferral of FBA and DIF fees. The FBA and DIF fee deferral programs will continue indefinitely. Regional Transportation Congestion Improvements Program and Housing Impact Fees (HIF) are not eligible for deferral.
Can I dispute my impact fees?
We guarantee a second opinion on request. If for any reason you disagree with the impact fees assessed on your development, contact your Facilities Financing Project Manager and ask for a second opinion.
What is the Capital Improvements Program (CIP)?
Capital Improvements Program (CIP) is a listing of public facilities project pages designed to provide citizens and City officials with accurate and informative financial and logistical information for every CIP project currently in progress or scheduled for the current fiscal year. Information provided includes project name, location, community name, estimated cost, revenue sources, and project schedule.