City of Lathrop
Public Hearing to Amend and Restate
the City of Lathrop’s Participation in
the Statewide Community
Infrastructure Program
FEBRUARY 12, 2024
ITEM #5.3
Summary
The California Statewide Community Development
authority (CSCDA) is a joint powers authority
sponsored by the League of California Cities and the
California State Association of Counties.
Currently, 530 cities, counties and special districts
throughout the state are members of CSCDA, including
the City of Lathrop.
In 2002, CSCDA instituted a Statewide Community
Infrastructure Program (SCIP) to allow property
owners in participating cities and counties to finance
development impact fees through pooled special
assessment district programs.
Summary Continued…
The City joined SCIP in 2012, and participated in the
SCIP 2018B bond series for a project on Murphy
Parkway, funding approximately $1.7 million in fees.
Since the City joined, SCIP has expanded to include
financing of capital improvements and community facility districts (CFDs).
In order for the City's developers to take advantage of the expanded financing, the City Council will need to
amend and restate the City’s current participation
resolution (Resolution No. 12-3313).
Property Owner SCIP
Benefits
Instead of paying cash for public capital improvements, the property owner receives low-cost, long-term tax-exempt
financing of those fees, freeing up capital for other purposes. For home buyers, cost of public infrastructure is paid for through an assessment or special tax, instead of rolling into the cost of the home. Although the tax bill is higher, the amount of the mortgages is smaller, making it easier to qualify.
Owners of smaller projects, both residential and commercial, can have access to tax-exempt financing of infrastructure. Before SCIP, only projects large enough to justify the formation of an assessment district or CFD had access to tax-exempt financing.
SCIP can finance projects as low as $500k, which would not be economical on a standalone basis.
City SCIP Benefits
The City is not liable to repay the bonds issued by CSCDA. CSCDA handles all district formation, district administration, bond issuance and bond administration.
The availability of financing will encourage developers to pull permits and pay fees in larger blocks, giving participating city, county or special districts immediate access to revenues for public infrastructure.
Many developers rely on assessment district or CFD financing through SCIP in making the decision to purchase land, thereby improving a City’s competitive advantage in attracting new development.
Recommendation
Hold a Public Hearing; and
Adopt Resolution Amending and Restating the City of
Lathrop’s Participation in the Statewide Community
Program (SCIP)