DATE:
October 9, 2024
FL01
TO:
Board of Supervisors
Flood Control Board of Directors
SUBJECT
Title
RESOLUTION AUTHORIZING A SERVICE TAX JOINT AGREEMENT WITH THE CSCDA TO CONDUCT MAINTENANCE ONLY CFD FORMATIONS ON BEHALF OF THE COUNTY OF SAN DIEGO AND ASSOCIATED CEQA FINDINGS (DISTRICTS: ALL)
Body
OVERVIEW
The County of San Diego (County) has the authority to issue tax-exempt bonds to fund public and private infrastructure projects by establishing Assessment Districts (AD) or Community Facility Districts (CFD). Private developers typically use such bonds to finance the construction of new infrastructure, and the districts to fund ongoing maintenance of public facilities such as parks, roads, and stormwater improvements. Future property owners in the district repay the bonds issued over time and/or continue to pay a special tax to fund ongoing infrastructure maintenance by the County. Today's proposal would authorize the County of San Diego to participate in an innovative new program that establishes maintenance only CFDs, which can be used voluntarily to enhance housing development feasibility and guarantee the inclusion of amenities that improve residents' quality of life.
The Mello-Roos Community Facilities Act of 1982 guides the creation of a CFD in California. This act requires a two-thirds vote from residents or landowners to form a CFD. Developers typically pay the County to manage this process, ensuring full cost recovery for staff and administrative expenses as outlined in Board Policies I-136 and B-29. While the County does have its own processes in place to establish ADs and CFDs, there are other alternatives offered through the California Statewide Communities Development Authority (CSCDA), which reduce administrative time and costs for the County; realize shorter times frames for the formation and management of ADs and CFDs; and often is preferred by developers because it allows for projects to satisfy conditions of approval and begin co...
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