State financing program a win-win for Placer County government and developers
July 26, 2016
Community development and public works projects in Placer County will soon be cheaper and faster after the county board of supervisors voted unanimously today to join the Statewide Communities Infrastructure Program.
SCIP, administered by the California Statewide Communities Development Authority, offers a number of features to reduce the time and cost of project financing to developers, and benefits local government agencies by more quickly making development fees available for their use.
Several other local agencies - including El Dorado County and the Placer County cities of Roseville, Rocklin and Lincoln - also use the program. Placer County is already a member of the development authority.
To build new housing or commercial projects, developers in California are required to pay a development impact fee to offset the cost to a local government agency of providing the infrastructure or amenities needed to accommodate increased population or traffic.
Development impact fees are a major source of funding for local public works and infrastructure maintenance projects. SCIP can finance impact fees for developers, while making those fees immediately available to local agencies to use for infrastructure projects.
Because the program is administered by the state, participation reduces the cost to form and administer assessment districts, benefitting from the economies of scale associated with a statewide program.
The SCIP program has assisted communities and developers throughout California to finance over $150.2 million in impact fees and issued more than $200 million in bonds since 2003.