Ventura Municipal Code Ch. 4.205 Development Impact Fees Deferral Program

The development impact fee deferral program (“deferral program”) is intended to ease this barrier by deferring the payment of certain development impact fees for new and redevelopment projects with at least 50 percent of units deed restricted as affordable housing units. The deferral program is consistent with the objectives and policies outlined in the certified housing element. (Ord. No. 2024-006, § 1, 10-22-24)

“Applicant” means the owner or owners of record for the real property on which a development project is to be located.

“City” means the city of San Buenaventura, California.

“City attorney” means the city attorney for the city of San Buenaventura, California.

“City council” means the city council for the city of San Buenaventura, California.

“Deferred fees” means any development impact fees, plus accrued interest, that the city has agreed to defer in accordance with this chapter.

“Development project” means a development project which is in compliance with all federal, state and local requirements including, without limitation, environmental requirements due prior to issuance of a building permit.

“Director” means the city’s community development director.

“Extremely low income household” means a household with income that meets the standards defined in California Health and Safety Code Section 50106. The maximum household income for extremely low income households shall be the amount published annually by the California Department of Housing and Community Development for Ventura County, as adjusted to reflect the actual household size of the tenant in a particular unit.

“Lower income household” means a household with income that meets the standards defined in California Health and Safety Code Section 50079.5. The maximum household income for lower income households shall be the amount published annually by the California Department of Housing and Community Development for Ventura County, as adjusted to reflect the actual household size of the tenant in a unit.

“Very low income household” means a household with income that meets the standards defined in California Health and Safety Code Section 50105. The maximum household income for very low income households shall be the amount published annually by the California Department of Housing and Community Development for Ventura County, as adjusted to reflect the actual household size of the tenant in a particular unit. (Ord. No. 2024-006, § 1, 10-22-24)

A. Eligible Projects. The deferral program is available to development projects that include seven or more residential dwelling units in a new or redeveloped project with at least 50 percent of the total units deed restricted as affordable to extremely low, very low, and lower income households for at least 45 years for ownership projects and 55 years for rental projects.

B. Deferred Fees. The city may defer any or all of the following development impact fees pursuant to the provisions of this chapter: the parks and recreation facilities tax; the traffic mitigation fee; the service area park mitigation fee; the public park mitigation fee; the general capital improvement tax; the fire facility and equipment mitigation fee; and any development impact fees created after the effective date of this chapter that do not specifically prohibit deferral by local, state or federal regulations. (Ord. No. 2024-006, § 1, 10-22-24)

A. Application Required. An applicant meeting the threshold eligibility requirements provided in Section 4.205.030. Applicant must submit to the director, on a form to be provided by the city, a completed application requesting the deferred payment of development impact fees.

B. Review and Decision. The director shall approve or deny complete applications within 30 days of submittal. (Ord. No. 2024-006, § 1, 10-22-24)

The director’s approval of an application shall be conditional and subject to execution and recordation, as applicable, of all the following:

A. Fee Deferral Agreement. A fee deferral agreement satisfactory to the director and approved by the city attorney that, at a minimum, requires:

1. The applicant to execute a promissory note, deed of trust, and regulatory agreement as set forth in subsections (B)(1), (B)(2), and (B)(3) of this section.

2. The applicant to repay the deferred fees through annual payments of a percentage of cash flow as set forth in the promissory note.

3. The first payment to be due by the first of the month following the third year after certificate of occupancy is issued on the development project’s first unit, and annually on such date thereafter, or when the project is cash flow positive, whichever is later.

4. A term stating that the applicant can prepay the outstanding balance of deferred fees at any time during the term of the agreement without incurring a prepayment penalty.

5. A term requiring the outstanding balance of deferred fees to be due and payable on the maturity date specified in the promissory note.

6. A term stating that the applicant consents to the recordation of the agreement.

B. Security Instruments.

1. Promissory Note. A promissory note satisfactory to the director and approved by the city attorney in the amount of the deferred fees. Except as otherwise provided below, the promissory note shall bear simple interest at the rate of three percent per annum. Interest will begin to accrue on the date that the first payment is due in accordance with subsection (A)(3) of this section. The promissory note’s term shall be for 45 years for ownership projects and 55 years for rental projects. The interest rate shall remain at three percent per annum.

2. Deed of Trust. The promissory note shall be secured by a deed of trust recorded against the property subject to the fee deferral agreement. The deed of trust shall be in a form acceptable to the director and approved by the city attorney.

3. Regulatory Agreement. A regulatory agreement ensuring that the development project’s units for extremely low, very low, and/or lower income households remain affordable for the duration of time required by this chapter. The regulatory agreement shall be in a form acceptable to the director, approved by the city attorney, and recorded against the property subject to the fee deferral agreement. (Ord. No. 2024-006, § 1, 10-22-24)